INFLATION--FED announces 0.50% interest rate cut

[Monahorns]

End the Fed. End fiat money. It's unconstitutional according to Article 1 Section 10.

How Bad Were Recessions before the Fed? Not as Bad as They Are Now | John Kennedy

 

[Chop]

Consumer fears may make a recession 'self-fulfilling': Morning Brief

Stocks open lower on Wall Street, extending a weak streak

Poll: 83% of Americans cutting back on personal spending due to inflation - Santa Barbara News-Press

"New Jersey-based Provident Bank released the report, which found that roughly 83% of those surveyed have cut back on personal spending due to inflation, with about 23% saying they have made “drastic changes” to their spending.

Many Americans are struggling to purchase basic necessities as gas prices hit record highs earlier this month.

“When asked which price increases on regularly purchased products or services have hurt consumers the most, gasoline, groceries and clothing were among the most frequently mentioned items,” the Provident Bank report said. “More than 50% (53.33%) said they now spend between $101-$500 more per month on groceries. According to the survey results, 32% of drivers are now spending between $101-$250 more per month on gasoline, with 13.5% reporting a monthly increase in fuel costs between $251-$500.

“In addition to gasoline, groceries and clothing, respondents named baby products, meat, utilities, household goods, milk and alcohol as adding the most to their monthly bills,” according to the report.

“While some consumers have cut back on some non-essential spending, like dining out and unnecessary travel, others reported much more drastic changes such as skipping meals, conserving water, and eliminating meat from their diets,” the report said. “People are feeling an immense amount of financial pressure right now.”"

 

[Chop]

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

Wait a minute. This thread has gone from Inflation to discussing cats anal glands...




gotta love the Internet

 

[Chop]

AHA!!!

It's the Corporations' fault...

this one is from the ever-objective L.A. Times and the even more ever-objective Roosevelt Institute

Column: The big contributors to inflation you're not hearing about: profiteering corporations

"Here’s an inflation remedy you’re not hearing much about: Reduce corporate profits.

If that sounds like a drastic, even radical idea, the reason may be that economic commentators and news pundits have been fixated on the role of higher wages in driving inflation higher.

As I reported recently, an argument is even being aired that the solution to inflation is to drive the unemployment rate higher.

Corporate markups are real. Bringing them down would be beneficial to the economy.

— Mike Konczal, Roosevelt Institute

[sounds like Konczal and the Roosevelt Institute are pushing price controls...]

What’s curious about that idea is that economic statistics make clear that corporate profits have played a much larger role in fueling inflation than wage increases or the currently low unemployment rate."

 

[Chop]

More from Left Field.

Mike Konczal of The Roosevelt Institute.

https://www.mikekonczal.com/

This guy is an "Expert". He knows better than you.

(and he's a published author with two college degrees--so he REALLY knows better than you...)

He is the author of the recent Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand

 

[Chop]

More from Left Field.

Mike Konczal of The Roosevelt Institute.

https://www.mikekonczal.com/

This guy is an "Expert". He knows better than you.


He is the author of the recent Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand

Here's another Mike Konczal article: WHY A BIDEN ADMINISTRATION NEEDS TO SPEND BIG...

Why a Biden Administration Needs to Spend Big

"Democrats must embrace massive infrastructure projects, giant deficits, and a high debt-to-GDP ratio."

"The problems we face are large. But so is our ability to spend."

 

[Garmel]

More from Left Field.

Mike Konczal of The Roosevelt Institute.

https://www.mikekonczal.com/

This guy is an "Expert". He knows better than you.


He is the author of the recent Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand

In a sane world getting an endorsement from Krugman would be the death kiss.

 

[Chop]

Here's another Mike Konczal article: WHY A BIDEN ADMINISTRATION NEEDS TO SPEND BIG...

Why a Biden Administration Needs to Spend Big

"Democrats must embrace massive infrastructure projects, giant deficits, and a high debt-to-GDP ratio."

"The problems we face are large. But so is our ability to spend."

"The problems we face are large. But so is our ability to spend."

That one sentence summarizes the government philosophy of around 1/2 of our federal government officials.

 

[Chop]

"The problems we face are large. But so is our ability to spend."

That one sentence summarizes the government philosophy of around 1/2 of our federal government officials.

Hmmmmmmmmm...

It got me thinking.

Might this sort of big gov't spending philosophy contribute something to the ongoing high inflation...?

 

[nashhorn]

“[a] heroic critic of austerity, and a huge resource for progressives.”
Well there ya go.

 

[mb227]

Wait a minute. This thread has gone from Inflation to discussing cats anal glands...




gotta love the Internet

One COULD make the argument that BOTH are *ahem* sh*tty situations...

 

[Chop]

AHA!!!

It's the Corporations' fault...

this one is from the ever-objective L.A. Times and the even more ever-objective Roosevelt Institute

Column: The big contributors to inflation you're not hearing about: profiteering corporations

"Here’s an inflation remedy you’re not hearing much about: Reduce corporate profits.

If that sounds like a drastic, even radical idea, the reason may be that economic commentators and news pundits have been fixated on the role of higher wages in driving inflation higher.

As I reported recently, an argument is even being aired that the solution to inflation is to drive the unemployment rate higher.

Corporate markups are real. Bringing them down would be beneficial to the economy.

— Mike Konczal, Roosevelt Institute

[sounds like Konczal and the Roosevelt Institute are pushing price controls...]

What’s curious about that idea is that economic statistics make clear that corporate profits have played a much larger role in fueling inflation than wage increases or the currently low unemployment rate."

One of my sources to consider from (far) Left Field has published a more detailed article explaining how (in their view) this inflation is mostly the fault of greedy profiteering corporations...



https://rooseveltinstitute.org/wp-content/uploads/2022/06/RI_PricesProfitsPower_202206.pdf
.....................................

...................................."I've been saying it all along..."

 

[Sangre Naranjada]

More from Left Field.

Mike Konczal of The Roosevelt Institute.

https://www.mikekonczal.com/

This guy is an "Expert". He knows better than you.

(and he's a published author with two college degrees--so he REALLY knows better than you...)

He is the author of the recent Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand

Zoom way in on the photo. His eyes are brown.

I think we all know why...

 

[Monahorns]

Governments love Keynesian economists. It's why that school of thought is so prominent today. Keynesians justify every government action. They green light every expansion of power.

He is the author of the recent Freedom from the Market: America’s Fight to Liberate Itself from the Grip of the Invisible Hand

The fight against "the invisible hand" is actually a fight against objective reality. It causes booms and busts. We all suffer because of what they do.

 

[HornHuskerDad]

"The problems we face are large. But so is our ability to spend."

That one sentence summarizes the government philosophy of around 1/2 of our federal government officials.

Reminds me of a quote from Hubert Humphrey back in the 60s - "Of course I'm for big government; we have big problems." Apparently Hubert believed that only government programs could solve problems - and unfortunately that philosophy has been continued (and intensified) by the Democrats through the years.

 

[Chop]

 

[Chop]

"Core" inflation (in isolation) doesn't look too awfully bad...

United States Core Inflation Rate - June 2022 Data - 1957-2021 Historical

 

[Chop]

Historical Inflation Rate by Year

The article has a good graph, showing that we're still not at (or even all that close to) the horrid inflation of the 1970s.

Another graph below shows the same:

 

[Chop]

Fortunately, the fiscal discipline of our leaders, and the foresight and timeliness of our Fed, will check inflation from spiraling out of control.

 

[Chop]

Unemployment is currently low, very low.
Inflation is high.

Time to ease restrictions on imports and to nix tariffs. If it goes the other way (high unemployment + low inflation), then they could always be re-instated if they are so desired. (cue debate on whether tariffs are ever desired).

 

[LonghornCatholic]

 

[Horn2RunAgain]

Historical Inflation Rate by Year

The article has a good graph, showing that we're still not at (or even all that close to) the horrid inflation of the 1970s.

Another graph below shows the same:

The 70s (beginning 73 as i recall) were horrible in terms of economic health. My dad's first try as a business owner failed in 74. Four years after start up. He started another business in 83 when conditions were much better/ solid, sold in 88 for a decent sum and retired comfortably

Most of The 70s were awful, in regards to our economy as a whole. Knew many that were hurt badly from 73 to 1982.

 

[Run Pincher]

Gotta pay for that free healthcare so the undocumented vote for the dems.

California will be the first state to offer health care to all undocumented immigrants (msn.com)

 

[Chop]

Most of The 70s were awful, in regards to our economy as a whole.

Yeah, but oooooooohhhhhh those 1970s styles and the music!!!

Tying this back to inflation--note the plaid jacket is only $16!!!
Wow, what a bargain!!!

 

[Chop]

US stocks gain ground while bond market signals caution

Fed signals more rate increases are on the way.

Markets like what they hear.

 

[Chop]

Speed up rate hikes to stop sticky inflation, BoE's Mann says

England weighs in.

 

[Horn2RunAgain]

Yeah, but oooooooohhhhhh those 1970s styles and the music!!!

Tying this back to inflation--note the plaid jacket is only $16!!!
Wow, what a bargain!!!

People wore pajamas to work and in social gatherings then. Horrible look

 

[Chop]

Bloomberg - Are you a robot?

While persistently high and broad-based inflation is seen persuading Fed officials to raise their benchmark rate 75 basis points for a second consecutive meeting on July 27, recession concerns are mounting. There are signs, though, that price pressures at the producer level are stabilizing as commodities costs -- including energy -- retreat.

 

[Chop]

https://www.cnbc.com/2022/07/06/fed-minutes-june-2022.html

• Federal Reserve officials at their June meeting said another interest rate increase of 50 or 75 basis points is likely at the July meeting, according to minutes released Wednesday.
• Policymakers “recognized the possibility that an even more restrictive stance could be appropriate if elevated inflation pressures were to persist,” the document said.

 

[Chop]

Global Economics Intelligence executive summary, June 2022 | McKinsey

In the eurozone, inflation is at record levels: consumer inflation reached 8.1% while producer-price inflation reached a staggering 37.2% on soaring energy prices (15.2% excluding energy prices). Inflation is also high in emerging economies, including India (7.0%), Brazil (11.7%), and Russia (17.1%).