INFLATION

Discussion in 'West Mall' started by Chop, Nov 30, 2021.

  1. iatrogenic

    iatrogenic 2,500+ Posts

    Are you referring to PPP money during Covid?
     
  2. Mr. Deez

    Mr. Deez Beer Prophet

    Yep, and this is why I say there are winners with high inflation. The country in general obviously loses, but some (including some very powerful interests) do very well. Frankly, that's why it's happens. Inflation is a choice. We don't have to have it. We decide to through policy that some interests want.

    It's a little like the EITC. Superficially, poor people benefit, but the real winners are companies like Walmart and McDonald's. The poor who get it are getting an extra few grand. They like it, but it's not life-changing money. They're still poor. The companies are making billions by having their labor costs subsidized by the government. They are the real winners.
     
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  3. Monahorns

    Monahorns 5,000+ Posts

    Not sure what it was called at the time. But check out the graphs.

    M1

    M2
     
  4. Chop

    Chop 10,000+ Posts

    Yellen says U.S. inflation 'unacceptable' but likely to stay high

    Yellen has come under fire from Republicans after admitting she was "wrong" last year in forecasting that inflation would be transitory and quickly subside. She will face more tough questions on the issue in a House Ways and Means Committee hearing on Wednesday.
     
  5. Mr. Deez

    Mr. Deez Beer Prophet

    To fix it, she would have to renounce most of her prior assumptions about economics. Not gonna happen.

    But she can quit her job.
     
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  6. Chop

    Chop 10,000+ Posts

    Here's the wiggle room:

    As pointed out way back in this thread, if you establish a long enough time frame, almost everything is "transitory"...
     
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  7. Garmel

    Garmel 5,000+ Posts

    Isn't it funny how we have so called experts in charge of our economy who don't have a basic understanding of economics?
     
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  8. mb227

    mb227 de Plorable

    If by 'funny,' you mean 'astonishingly sad,' then yes...I agree.
     
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  9. Mr. Deez

    Mr. Deez Beer Prophet

    What really makes it tough is that they are highly credentialed, so they think they should be trusted and listened to. In reality, they are mal-educated. To borrow Reagan's comment, they know a lot that isn't so.
     
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  10. Chop

    Chop 10,000+ Posts

    Well, housing inflation is grinding to a halt in many markets. We will likely see housing deflation in plenty of bubble markets.
     
    • Agree Agree x 1
  11. Chop

    Chop 10,000+ Posts

    [​IMG]

    'THAT'S RIGHT. I MADE HOUSING MORE AFFORDABLE.'
    (in case there are any exceptionally thick lurkers out there: this is not an actual quote, just a prediction of the spin...)
     
  12. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    Meanwhile, the stock market continues to slide because of inflation fears. And retirees on a fixed income are feeling the pinch - and this is not a good time to liquidate stock holding to generate income. Thank you, Joe Biden - you have really taken good care of the American people. :brickwall:
     
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  13. Chop

    Chop 10,000+ Posts

    https://www.usnews.com/news/economy/articles/2022-06-10/inflation-soars-in-may-with-consumer-prices-up-8-6#:~:text=June 10, 2022, at 8:59 a.m.&text=Inflation worsened in May, rising,Labor Statistics reported on Friday.&text=The monthly gain was 1,an 8.3% increase in April.

    Consumer price index for May, 2022 pushes upwards even more--to 8.6% annualized. This exceeded expectations, following an 8.3% increase in April.

    Core inflation (strips out food and energy) rose to 6.0% annualized.

    "Inflation remains stubbornly high in the United States, reflecting global food and energy shortages caused by the Russia-Ukraine conflict, as well as the high momentum of domestically-determined prices like house prices, rents, and medical care," said Bill Adams, chief economist at Comerica Bank.

    One area where inflation is starting to abate is online spending. In May, online prices increased just 2.06% from a year ago, down from April’s 2.9% rise and March’s 3.6% jump, according to data collected by Adobe Analytics.

    Electronic goods and apparel led the slowdown, with drops of 6.5% and 9% from year-ago levels. One category that did not decline was groceries, which rose 11.7% in May."

     
    Last edited: Jun 14, 2022
  14. Chop

    Chop 10,000+ Posts

  15. Chop

    Chop 10,000+ Posts

    :arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up::arrow-up:
    This can't be good for the Incumbents...
     
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  16. HornHuskerDad

    HornHuskerDad 5,000+ Posts

    • WTF? WTF? x 2
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  17. Chop

    Chop 10,000+ Posts

    "Biden argued that his economic agenda, which relies on massive government spending, would help drive down inflation"
    [​IMG]

    :confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused::confused:

    Ummmmmm.......... Joe, .............. Massive government spending tends to increase inflation...
     
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  18. mchammer

    mchammer 10,000+ Posts

     
    • Funny Funny x 1
  19. Chop

    Chop 10,000+ Posts

  20. Monahorns

    Monahorns 5,000+ Posts

    • Hot Hot x 1
  21. mchammer

    mchammer 10,000+ Posts

  22. Vol Horn 4 Life

    Vol Horn 4 Life Good Bye To All The Rest!

    The big miss here is this inflation is driven by two factors. Not only is massive spending a problem, but $20+ hr wages are here to stay. All costs are passed along. People think raising minimum wage helps people when all it does is make everything more expensive making minimum wage "unlivable" again. The solution is to get more people to learn a skill.
     
  23. Monahorns

    Monahorns 5,000+ Posts

    The Fed has no good purpose. Get rid of it now. Let the market go to the neutral rate by itself. Inflation will go way down. Historically 0. Government spending will have to come way down. Government ability to control your life will go way down.

    From the article:
    "But why 75? When asked during the press conference to quantify how 75 basis points is better than 50, Powell had no answer beyond saying the committee simply decided to speed up the time frame of rate increases. The standard employed for coming to this conclusion, according to Powell himself, came down to “75 [basis points] seemed like the right thing at this meeting.” Needless to say, this didn’t answer the question of what we are to expect from that additional 25 basis points.

    Moreover, although many Fed watchers are now framing Fed policy as exceptionally hawkish, Powell himself stated that in his opinion, “right now our policy rate is well below neutral” and that a target rate of 1.75 is only “moderately restrictive.”
    "

    The Fed Is Winging It: A 75 Basis-Point Hike "Seemed Like the Right Thing" | Ryan McMaken
     
  24. Run Pincher

    Run Pincher 2,500+ Posts

    Market lot liking that .75 bump today. Dow down 650+ this morning.
     
  25. Chop

    Chop 10,000+ Posts

    The reason the fed is making 0.75 point bumps is because it waited too long to start raising the rate in the first place. Playing catch up.
     
    • Agree Agree x 1
  26. mchammer

    mchammer 10,000+ Posts

    Yes and it insures a hard landing. Morons.
     
  27. mchammer

    mchammer 10,000+ Posts

    And it all started to support Biden’s Covid lockdown strategy.
     
  28. mb227

    mb227 de Plorable

    Be glad we don't have pilots writing the script or we would be hearing that even a hard landing is a good landing since it meant it was a landing you walked away from...
     
  29. Monahorns

    Monahorns 5,000+ Posts

    OMG. The rate will have to be 10% before it has any effect on interest. Y'all keep acting like this was a big step. It's tiny.
     
  30. Monahorns

    Monahorns 5,000+ Posts

    You either get high inflation or a recession. Take your pick. When you print $3 trillion in 2 years after printing billions the last decade this is what happens.
     

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