Exactly. We have to get back to a culture of saving. That is the precursor to all economic stability and advancement. With higher interest rates in the future maybe we can get back to building wealth by holding money in the bank. In reality, we are already there. We need double digit interest rates temporarily in order to bring inflation down.
Great piece by Thomas Paine on the evils (yes evils) of paper money. Now we don't even have that. We have electronic, ethereal money. If we would have followed our wise founders (meaning NOT Alexander Hamilton), we wouldn't be in such an economic mess today. Thomas Paine on Paper Money |
So yer sayin’ she could do some quantitative easing (or would that be tightening) on you. Maybe she’ll get in there and hike the rates up to firm up the situation. After she’s stripped (the Central Bank of its lingering assets that she’ll sell off), then maybe a few rounds of tightening the belt or something. She’s sure to whip that inflation into shape. But she may just prefer it to be eased in (the multiple rate hikes) slowly and steadily a few more times. It’s a good thing that the world has a central banker like her. Now who says economics and central banking isn’t sexy!?!?!
Pakistan is on the verge of becoming another Sri Lanka. Overall Inflation at approx 25% Food inflation around 30% (some staples near 80%) Food insecurity affects around 50% of the population Food riots Their patron, China, is just about broke and can’t bail them out
Requires a log-in, but I am guessing it goes on about how some companies are going to scale back dividends, which in turn, harms pensioners and retirees who rely upon dividends to support themselves in the golden years.
Dollar edges lower as traders await U.S. inflation report https://www.cnbc.com/2022/08/08/cra...ion-could-push-fed-into-august-rate-hike.html https://www.usnews.com/news/economy...-in-a-positive-sign-inflation-is-slowing-down "Gas prices have fallen below $4 a gallon for the first time since March as a combination of reduced demand and the falling cost of oil have dealt drivers a needed respite during the summer driving season. “We’ve never seen anything like 2022 at the pump, highlighted by once-in-a-lifetime events including the ongoing Covid-19 pandemic, which caused myriad imbalances, exacerbated by Russia’s war on Ukraine,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “As a result, we’ve seen gas prices behave in ways never witnessed before, jumping from $3 to $5 and now back to $3.99,” De Haan said. “While the recent drop in gas prices has been most welcomed, the issues that led to skyrocketing prices aren’t completely put to bed, and still could lead prices to eventually climb back up, should something unexpected develop.” The drop will reduce the amount of money Americans will spend on gas by $400 million compared to the middle of June."
Keep in mind that gas prices almost always drop during recessions because of crashing demand. Gas was cheap as **** in '09 and '10.
We're still in the tail end of Summer vacation driving season, so that would normally keep gas prices a bit elevated, I'd think.
^I think you raised a good point, Chop. I'll throw in another for discussion - many folks are still working from home; what happens to gasoline demand if employers start bringing them back into their offices? That would mean more demand for gasoline - and the resulting upward pressure on price.
HHD, Not to worry. The Democrats have another 2-3 "scamdemics" to line big pharma's pockets, which of course means "sliding" a little bit toward their favorite politicians. Question: What percentage of a couple of billion is "a little bit"?
Stock Market News Today: CPI Report Shows Inflation Eased to 8.5% in July Dollar falls on cooler-than-expected U.S. inflation data https://www.nytimes.com/live/2022/08/10/business/inflation-cpi-report CPI is down to 8.5% annual inflation.
Inflation slows significantly as gas prices drop in July Driven, in part, by falling gas prices. Speaking at the White House during a bill-signing ceremony on Wednesday, President Joe Biden touted the inflation data, saying it showed "some signs" that U.S. price increases may be "beginning to moderate."
Good luck with that with 5.5% wage inflation. It has shifted from goods inflation to labor inflation.
If wage inflation lasts for a while, that's usually an impetus for advances in labor-saving technology. This principle goes at least all the way back to the Black Plague and Medieval labor markets.
There is no chance it will happen, but it is needed. But get back to a gold standard or bitcoin standard even and it would happen even with strong labor rates.
And then, of course, we see unemployment spike again... The left was warned of this when they decided that burger flippers require fifteen bucks an hour...they chose to ignore the fundamental principles of economics and the impacts upon the costs of goods through the entire cycle.
Nah it’s just Biden math. If the July number is less than the June number well heck you just subtract the absolute number and you’re at zero. Oh brother.
At peak inflation, the 2nd derivative is going to be zero (rate of inflation) whereas the first derivative (inflation, which is the rate of price increases) is still positive. Guess what? Next month Biden will say inflation is now negative!
Biden hasn't had an original thought at the podium...he reads whatever people put in front of him. Someone in the corrupt Ron Klain/Jill Biden administration WROTE that.