INFLATION--FED announces 0.50% interest rate cut

[mb227]

Considering only the Domestic Economy:

Compare Now to the late 1970s (at the worst spot of the Jimmy Carter era).

Are we worse off now, or in the late 1970s?


(I put in my vote for worse off in the late 1970s)

There are certainly elements that were worse then...gas lines had returned and we saw double-digit interest rates. However, for those that had the funds to save, those same high interest rates DID make for some good short-term CD rates and returns. For those that had funds to invest, there were some buying opportunities as well...after all, I still remember that it was not until the early 80's that the Dow actually cracked four-digits for the first time ever...and now we are seeing drops of MORE than that amount.

Before Joe gets replaced, he will have cratered things in a manner that make him the all-time worst. And if the left follows through on their threats to be 'ungovernable' after the Opinion comes out, the economy will get far worse before the Republicans can turn things around after November elections are done and in the books.

At least he doesn't have a hostage crisis...yet. Give him time. He seems to like tossing Americans to the wind, as we already saw in Afghanistan.

 

[SabreHorn]

Chop,

Carter got the real inflation rate up around 42%.

My real inflation rate considers things that impact every American every day:

Cost of housing
Cost of autos
Cost of utilities
Cost of groceries
Cost of gasoline

Jimmy Carter was a good man, who was better suited to manage a McDonalds than run the US. Couple that with the "character" of his close friends and you have one helluva mess. I had a very powerful friend who was involved in the civil rights movement and Democrat Party. When I stopped by to pick him up, Carter called to see why he had not RSVP his invitation to Carter's inauguration. When my friend hung up, he told me, "Stupid son-of-a-***** is too damn dumb to realize that not even I voted for him. It's gonna be a bumpy ride".

 

[mb227]

Chop,

Carter got the real inflation rate up around 42%.

My real inflation rate considers things that impact every American every day:

Cost of housing
Cost of autos
Cost of utilities
Cost of groceries
Cost of gasoline

Jimmy Carter was a good man, who was better suited to manage a McDonalds than run the US. Couple that with the "character" of his close friends and you have one helluva mess. I had a very powerful friend who was involved in the civil rights movement and Democrat Party. When I stopped by to pick him up, Carter called to see why he had not RSVP his invitation to Carter's inauguration. When my friend hung up, he told me, "Stupid son-of-a-***** is too damn dumb to realize that not even I voted for him. It's gonna be a bumpy ride".

Showing, yet again, that Sabre really DOES know damned near everyone in the Western world and, if Sabre does not know them, likely has someone in their contacts who DOES know the other person.

 

[iatrogenic]

Showing, yet again, that Sabre really DOES know damned near everyone in the Western world and, if Sabre does not know them, likely has someone in their contacts who DOES know the other person.

Now I feel more insignificant than ever before. Sabre, can I be your friend?

 

[SabreHorn]

can I be your friend?

I guess. I've never had one for more than 10-15 minutes

 

[Chop]

Chop,

Carter got the real inflation rate up around 42%.

My real inflation rate considers things that impact every American every day:

Cost of housing
Cost of autos
Cost of utilities
Cost of groceries
Cost of gasoline

Jimmy Carter was a good man, who was better suited to manage a McDonalds than run the US. Couple that with the "character" of his close friends and you have one helluva mess. I had a very powerful friend who was involved in the civil rights movement and Democrat Party. When I stopped by to pick him up, Carter called to see why he had not RSVP his invitation to Carter's inauguration. When my friend hung up, he told me, "Stupid son-of-a-***** is too damn dumb to realize that not even I voted for him. It's gonna be a bumpy ride".

I remember as a youth, sitting in the station wagon in a long line at the gas station, just hoping they wouldn’t run out of gas before we got to the pump.

 

[Chop]

Chop,

Carter got the real inflation rate up around 42%.

My real inflation rate considers things that impact every American every day:

Cost of housing
Cost of autos
Cost of utilities
Cost of groceries
Cost of gasoline

Jimmy Carter was a good man, who was better suited to manage a McDonalds than run the US. Couple that with the "character" of his close friends and you have one helluva mess. I had a very powerful friend who was involved in the civil rights movement and Democrat Party. When I stopped by to pick him up, Carter called to see why he had not RSVP his invitation to Carter's inauguration. When my friend hung up, he told me, "Stupid son-of-a-***** is too damn dumb to realize that not even I voted for him. It's gonna be a bumpy ride".

Yeah, the Kennedy’s never did care much for Jimmy Carter…

 

[mchammer]

What a shitshow

 

[Horn6721]

But she is a POC

 

[Chop]

What a shitshow

If she’s trying to shut down all O&G drilling, then she’s a domestic enemy of the United States.

This is a time to cut through red tape and expedite drilling permits—NOT to shut them down.

 

[mchammer]

But she is a POC

Piece of chit?

 

[nashhorn]

Not on their agenda Chop, which is to literally shut down any and all energy products not consistent with the ‘green’ agenda. They will not be satisfied until we are forced to adopt their agenda even if we die doing it. I absolutely believe that. My only question in the whole mess is if SloJo even knows what is going on - I doubt it.

 

[Chop]

Not on their agenda Chop, which is to literally shut down any and all energy products not consistent with the ‘green’ agenda. They will not be satisfied until we are forced to adopt their agenda even if we die doing it. I absolutely believe that. My only question in the whole mess is if SloJo even knows what is going on - I doubt it.

He’s gotten senile in his old age. He’s surrounded by some dumb and reckless people. His background is in representing Delaware. That means, in large part, representing the interests of: (i) corporate headquarters and related support, and (ii) the chemical, including petrochemical, business.

 

[nashhorn]

Yep, like I said, I doubt he even knows what’s going on.

 

[Vol Horn 4 Life]

It amazes me how many oil and coal industry workers will vote to kill their jobs and not be smart enough to realize they did it to themselves. It also amazes me liberal candidates say during every election cycle how they want to kill the oil, gas and coal industries then when they do it the left wants to blame any and everything else but their beloved leaders when gas hits $5 - $6 a gallon and prices of everything increase.

Just dumb.

 

[UTChE96]

What a shitshow

Clearly that's a Russian disinformation campaign.

 

[mchammer]

My company is upstream of this business by 2-3 links. We started increasing prices this time last year. By the Fall, prices were almost doubled from 2020. It was obvious then that inflationary wasn’t transitory since the real inflation hadn’t even started.

Letter From A US Supplier Of Industrial Chemicals: "I Have Never Seen Anything Like The Current Supply Problems" | ZeroHedge

 

[Chop]

Maybe inflation will be transitory after all - Niskanen Center

 

[Chop]

https://www.thedenverchannel.com/ne...udget-office-says-inflation-to-last-into-2023

"The Congressional Budget Office says that high inflation will persist into next year.

This will likely cause the federal government to pay higher interest rates on its debt.

The nonpartisan agency expects that the consumer price index will rise 6.1% this year and 3.1% in 2023.

This forecast suggests that inflation will slow from current annual levels of 8.3%, yet it would still be dramatically above a long-term baseline of 2.3%."

 

[Chop]

Stocks slip, bond yields rise on inflation worries

"Global stocks fell and bond yields rose on Wednesday, while the dollar strengthened, as investors fretted over soaring inflation and the impact on global growth from looming interest rate rises.
...
German retail sales fell by more than expected in April as consumers felt the pinch of higher prices."

Basically, the dollar is a global currency of refuge. While we have high inflation, the dollar continues to be strong. Many other currencies are seen as less safe.

 

[Chop]

United States Inflation Rate - May 2022 Data - 1914-2021 Historical - June Forecast

These guys are forecasting an 8.3% inflation rate for May (the official numbers aren't out yet).

"...food prices jumped 9.4%, the most since April 1981..."

 

[Chop]

Inflation Is at Historic Highs — Here’s What Could Have Been Done To Prevent It

Smart guy, John Csiszar, explains what could have been done to prevent this high inflation.

While there is never a single cause of inflation, various policy decisions from the U.S. government and the Federal Reserve Board over the past two years have been cited as major contributors to the current inflationary predicament.

1. Stimulus Checks Could Have Been Limited

"... this flood of stimulus money almost inevitably contributed to the sharp rise in inflation occurring in 2022. Researchers at the Federal Reserve Bank of San Francisco quantified this amount, finding that about 3% of the jump in inflation by the end of 2021 could be attributed to the stimulus." [quoting Alianz's (huge German financial firm) El-Arian]

2. The Fed Could Have Acted Sooner

“The characterization of inflation as transitory is probably the worst inflation call in the history of the Federal Reserve, and it results in a high probability of a policy mistake.

... the Fed’s reluctance to act contributed to rising inflation rates. The Chief Economic Advisor for Allianz suggested three policy changes in December 2021 that in his view would stop the inflation crisis, saying, “I would 1) be very open and honest as to why I got the inflation call wrong and try to regain the inflation narrative. 2) I would go even further than doubling the rate of taper, and 3) I would open it up to the possibility that rate hikes may come faster than what the market has.”

The Fed has recently stepped up its rhetoric regarding raising the fed funds rate more aggressively and increasing the rate of its taper. The question remains whether it’s too little, too late.

John Csiszar-certified "smart guy"
so smart, they put his articles
on the Internet.

 

[Monahorns]

I don't think any article from yahoo has any clue about economics. Giving less in stimulus and raising rates sooner would have some affect. But they weren't going to prevent anything.

 

[Chop]

I don't think any article from yahoo has any clue about economics. Giving less in stimulus and raising rates sooner would have some affect. But they weren't going to prevent anything.

They were quoting El-Arian of Allianz, who was citing the Fed S.F. study that 3% of the high inflation was the result of the stimulus checks. That would have dropped inflation into the 5% range. El-Arian has, for a long time, seemed to me to have his stuff together when it comes to economics and broad economic trends.

 

[Monahorns]

They were quoting El-Arian of Allianz, who was citing the Fed S.F. study that 3% of the high inflation was the result of the stimulus checks. That would have dropped inflation into the 5% range. El-Arian has, for a long time, seemed to me to have his stuff together when it comes to economics and broad economic trends.

Yeah let's cite the Fed. The people who are responsible for doing all this to us. They are either liars or villains or both.

 

[iatrogenic]

Inflation is how the non- productive pay their “fair share”, their penalty, for receiving wealth transfer from others. They are least able to afford it, but are a major reason for the cause of it. Of course, we all pay.

 

[Monahorns]

Inflation is how the non- productive pay their “fair share”, their penalty, for receiving wealth transfer from others. They are least able to afford it, but are a major reason for the cause of it. Of course, we all pay.

Inflation is giving the non-productive money in hand to go buy things. This isn't just people on the low end of class either. The upper class gets great benefit way more than any welfare recipient does. The welfare recipient doesn't get 100s of thousands and millions through the central bank. The welfare class gets pittances which become less valuable as more money is created out of thin air. I guarantee their payments don't keep up with inflation. I guarantee that the wealthy recipients of the new money aren't as punished by inflation.

 

[iatrogenic]

Tell me what you are referring to regarding “getting millions from the central bank”

 

[Chop]

Sri Lanka is falling apart. They’re up to 133% inflation. That usually means an overthrow of the regime. They grow and export a lot of tea. “Ceylon”

Their govt banned the use of synthetic / non-organic / non-“green” fertilizers a while back, greatly harming the tea industry. They recently repealed the ban.

Sri Lanka is now living on credits from India. That may end very soon. China may step in “to benevolently lend a helping hand…”. China put a lot of $$$ into Sri Lanka’ port facilities.

 

[Monahorns]

Tell me what you are referring to regarding “getting millions from the central bank”

When the Fed created $1 Trillion and then $2 Trillion in 2020 and 2021, that money goes to big banks. That money then gets distributed to the politically connected banks, corporations, NGOs, etc. They benefit from the money creation and spend it before the price inflation occurs.