Not true. When has a Fed chairman ever predicted when a bust will occur? It always catches them by surprise.
you wrote Actually, this fed rate hike will effect interest almost immediately. Banks are now borrowing at a higher rate, and they are, and will be, lending at a higher interest rate.
Please read. They don't know what they are doing. Rising Interest Rates Are Revealing the True Damage Done by the Fed | Tho Bishop
It's a small anecdote, but I think it illustrates why this inflation problem is so politically damaging. Last Friday, I went to the Commissary at RAF Lakenheath. I bought the big-*** jar of Jiff Creamy Peanut Butter (because my wife is a lunatic about peanut butter and sends me to the store if it even gets a little low and sleeps with a jar next to our bed when she's really stressed). It cost $5.67, but for the last several years, it has cost $4.91. That's a 76-cent increase - a hell of a lot more than 8.6 percent. It makes no difference to me, because I know I'd have to buy it even if it cost $56.70, but I couldn't help but think, "thanks, Joe." Again, it's just one item, but this sort of thing sticks in people's minds, and I've noticed similar hikes in other items at the grocery store - not 8 or 9 percent but more like 15 or 20 percent (UK stores are up too, but the Commissary is up noticeably more.) As bad as the 8.6 percent figure, for the things that real people buy day in and day out (food and gas), it certainly seems much worse - enough to really hurt a middle class family and change how they vote.
^Mr. Deez, I wish I could give your post a higher rating - but I can't find one! I'm totally baffled - how does the Government compute the CPI? They're using smoke and mirrors somehow. 8.6% inflation rate? From where I sit - gasoline has more than doubled, my new electric rate (best I could find) is up 30+%, my trips to the Commissary that used to run $225 every two weeks now cost $375 (well over 50%). You note that you would have to buy peanut butter regardless of cost - at my house, cat food is the "must have" - and since Joe came into office, cat food has increased about 25%. Somebody please convince me how all this equates to an inflation rate of 8.6%. I had a second major in Mathematics - and the numbers I'm seeing just don't come to 8.6%.
Bubba has a link on Trump's body language thst prob explains it It is posted in the Joe Biden Accomplishment thread in reference to the Fact that Biden was handed an energy independent country.
Just for the sake of history I can say that NEVER has the Govt index matched the real price increase the public endures, NEVER.
It might be broadly 8.6 percent if you look at the entire economy and weigh everything the same, but that isn't a fair assessment. For example, maybe TVs haven't gone up that much, but we don't buy TVs regularly. We do buy food, gas, and energy regularly, and those things have skyrocketed. And cat food was already expensive for me. We have an old and very easily constipated cat, so I have to buy special high-fiber cat food. It costs £35 (about $43) for a 4 kg (about 8.5 pounds). Beating. It sounds awful, but I'll be relieved when she dies.
It’s a government measurement. You think unemployment is 3.6%? If so, I’ve got some ocean front property in College Station.
Also, what people fail to recognize is that energy inflation is exponential. Yes you are paying double at the pump, but you are also paying more for everything else that has to be shipped, driven or flown to the store. It’s also driving up wages as employees demand more money due to rising costs. The US economy is in the early stages of a death spiral due to Biden’s policies to pander to the leftist new green deal. This will get really ugly over the next two years if he doesn’t pivot after the murderous gangbang he gets in November.
The problem is that he's got a lot to pivot on. Bill Clinton basically had to drop HillaryCare, and that was it because he had left himself enough room on other issues to not seem radical left. Biden has swung hard left on pretty much everything - economic and social issues, and his base is very active and demanding. It's going to be so very hard for him to reinvent himself, despite any gangbang. Lol.
Good point, Mr. Deez. I haven't purchased a new TV in at least ten years - but I purchase gasoline, electricity, and food all the time. So I feel the impact of an inflation rate for those items that far exceeds 8.6%. One of our cats is nearly 18 years old, but at least I don't have to buy a special diet for her. But I have found that my cats have a very simple philosophy when it comes to food - "Master, we're hungry and the food dishes are empty - make them full - NOW!" So - when we're down to about a three-day supply of cat food, I head to the commissary.
They humor me just a bit by letting me call myself "Master" - after all, someone has to open the cat food can for them.
So I'm sure you can see the politics of this. Obviously, you're generally voting Republican anyway, but consider a middle class family. You've mostly voted Democratic because they seemed to cater to you. You were already starting to sour on them because they crap on your religious beliefs and have been flooding the country with illegal immigrants who are undercutting your wages. However, now they're also dumping a bunch of inflation on you with the most common things you buy and crushing your family budget. Could this be the last straw that makes you switch? Maybe so. Last time we had this problem in the late '70s, many similarly-situated voters did by November 1980. For a long time, I just bought cat food from the grocery store. I wasn't allowed to buy the cheap stuff, but it was at least in the zone of reasonableness. However, about 3 years ago, the wife noticed that the cat hadn't taken a full dump in several days and what little she got out wasn't going in her litter box. We took her to the vet, and he x-rayed her and found a massive backup in her system and blocked anal glands, which he expressed. Very nasty. He told us we needed to change her cat food ASAP and recommended the high-fiber stuff. It is more expensive than I thought it was possible for cat food to be and has to be bought online, but I must admit that it did a hell of a good job. It cleared the backup in less than a day and has kept her regular ever since.
I wonder if you could just sprinkle some Metamucil on the cat food or something…? You might get a dirty stare from the cat, but if it works for people…
We've tried mixing stuff into her food at various times. She picks around it and avoids whatever we put it in. She's weird about her food in general. When we first brought her home from the animal shelter in Austin, she initially refused to eat dry cat food and went on a bit of a hunger strike. When my wife walked in on her eating, that was the end of that, and she grudgingly started eating dry food. Then about 2 years later, she rewarded her for something with a little wet food. She refused it. She won't eat tuna. We've offered her cat treats at various times. She won't eat them. Strange cat.
U.S. consumer confidence index tumbles in June "The Conference Board said on Tuesday its consumer confidence index dropped 4.5 points to a reading of 98.7 this month. The present situation index, based on consumers' assessment of current business and labor market conditions, slipped to 147.1 from 147.4 last month. The expectations index, based on consumers' short-term outlook for income, business, and labor market conditions, tumbled to 66.4 - the lowest level since March 2013 - from 73.7 in May. "Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year end," said Lynn Franco, senior director of economic indicators at The Conference Board in Washington."
Analysis: Argentina's economic crisis whack-a-mole goes into overdrive Argentina: projected inflation of 75%
Fortunately, Argentina is a country with a long, sustained tradition of peaceful protest, open and honest government, responsible fiscal policy, citizen-friendly policing, limited military power, non-interference by the military into politics, responsive leadership, respect for freedom of speech and the press, utter disdain for anything that resembles Germany's Third Reich, and peaceful transfers of power.
