may be coffee demand hasn't changed, and if it increases, the production can keep up and thus the price stays the same.

Asset prices go up, because you cannot create more asset, but more people want it.

have you looked at real estate prices, healthcare, education - inflation and money supply changes do not impact every asset at the same time and by the same amount

Since the cost of making that cup is all domestic (labor, rent, marketing etc. the beans are maybe 1% of the cost), it will not change. Imported products may become more expensive though.

I’m sure the price of your coffee will rise soon. Better buy now while prices are low and HODL until they’re crazy high, and dump all.

Coffee is here to stay and will he THE truly anonymous and untraceable currency of the future.

This is an extremely difficult prediction to make.

The average price of groceries is up 13% since January and saw a 2.6% spike in a single month.

So congrats on your local coffee place taking the hit, expect the price to change.

Inflation is the term you may be more familiar with. As availability of currency expands and becomes less valuable, the price of things goes up to maintain value parity. In particular, right now money is being printed to ease the effects of COVID-19 issues, which is causing a large spike in prices as a form of inflation.

To complicate matters, though, inflation is normally thought of as CPI; a measure of what people are spending on consumable items. Things like stocks, housing, and other assets that are jumping in price are not consumable goods and services. As such we try to avoid using the term inflation for this phenomena, but the principle is the same.

Modern monetary policy seeks to try and keep that added money off of "Main Street", so that your groceries and gasoline aren't skyrocketing in price, but ultimately the money has to go somewhere, and that somewhere is "Wall Street".

The US dollar is just a type of asset (i.e. of the cash asset class). I'm proposing that it's become less valuable compared to other types of assets such as specific stocks like Apple's, gold, etc. I believe this is due the effects of the Federal Reserve's actions of injecting more US dollars into the economy recently (aka money printing). As more US dollars are created from thin air, other asset classes naturally increase in value, or the US dollar decreases in value, whichever angle you want to look at it from. This is simply called inflation.

Often times the Consumer Price Index is referenced as the source of truth on inflation, especially when the Fed makes its decisions on adding/removing money into the economy[0]. But the CPI doesn't track every type of asset such as stocks or gold, since these aren't things the Fed is trying keep the US dollar stable with as part of its dual mandate[1].

Price fluctuations haven't happened evenly across asset classes just because of the way COVID-19 has had effects on various parts of the economy. Not all stocks have increased due to negative effects of COVID-19 on certain types of businesses, not all real estate has climbed due to people moving around during COVID-19, etc.

0. https://en.wikipedia.org/wiki/Core_inflation

1. https://www.investopedia.com/articles/investing/100715/break...

It's not inflation as such, but look at the exchange rate between CHF/USD or EUR/USD.

USA is a failed state moving forward on momentum. You can expect the currency to crash after Trump refuses to leave office.

Inflation is a tricky topic because it all depends on what you measure. Multiple government measures of inflation are almost disingenuous because they don't measure some key items.

Inflation is fairly low when it comes to sustenance foods, cars, telecom, and technology -- however, that is not the story for things like: fish, fresh produce, textbooks, healthcare, rent, home prices, executive MBAs, some imported goods.

It gets even more complicated. Some things cost one for some people and another for others -- e.g., college tuition has skyrocketed if you don't get a scholarship/aid but is flat or down if you do get scholarship/aid

M2 Money Stock by the Fed: https://fred.stlouisfed.org/series/M2