INFLATION--FED announces 0.50% interest rate cut

[Monahorns]

At least you have a job. At my company, all high paid employees (beneath business director level) are being heavily scrutinized for performance. Basically if are replaceable you are shown the door and replaced with a lower paid employee.

I am thankful for that too. Times are tough.

 

[Horn2RunAgain]

80% of the 2-3% inflation today is comprised of rents and insurance. If your home insurance premium went up $1000 recently and you spend $50k annually, then it only adds 2% points to the inflation total. The other 1% or so is inflation in the other items. Note you only see the inflation in your insurance premium once per year. Most of the inflation could have happened 6 months ago but you didn’t know it.

It went up more than 1k.

Several here including me have detailed price increases on multiple things needed for daily life. I'll stand by my last sentence of my previous post

 

[mchammer]

It went up more than 1k.

Several here including me have detailed price increases on multiple things needed for daily life. I'll stand by my last sentence of my previous post

According to this chart, the price increase for rents (which would be followed by insurance) peaked one year ago. You are only seeing the price increases now but the damage was done last year.

 

[nashhorn]

Dang mc as I read that chart the ‘increase’ in 23 would be 6%. Maybe that is not significant in your eyes because of the 16% in 22 but heck, that is on TOP of the 16% the year before so it is quite a bit to stomach.

 

[mchammer]

At least you have a job. At my company, all high paid employees (beneath business director level) are being heavily scrutinized for performance. Basically if are replaceable you are shown the door and replaced with a younger, lower paid employee.

I should mention when business directors retire or leave the company, their position (unless core) is eliminated and replaced with a senior manager, who is paid less and with no stock options.

 

[mchammer]

Dang mc as I read that chart the ‘increase’ in 23 would be 6%. Maybe that is not significant in your eyes because of the 16% in 22 but heck, that is on TOP of the 16% the year before so it is quite a bit to stomach.

Yes, you should be thankful to Uncle Joe that it is only 6%.

<insert dancing banana>

 

[nashhorn]

Well of course.

 

[mchammer]

The impact of tight credit and sound money principles are about to hit the economy:

US Import & Export Prices Signal Massive Deflationary Impulse | ZeroHedge

 

[mchammer]

US Rents On Verge Of First Annual Drop Since Covid Crash Amid Supply Glut | ZeroHedge

 

[nashhorn]

Surprise, surprise, surprise, look at the ginormous number of apartments going up in Katy and no one can be surprised because Katy is not the only place being overwhelmed. I’m surprised Biden and company have not come out with a proposal for a free Ev with every new apartment lease.

 

[Horn6721]

What is the Fed law that new apt buildings must have certain % of gov't subsidized units?

 

[Chop]

New York will soon tie its state minimum wage to inflation. As prices go up, so does the minimum wage.

 

[Chop]

Inflation is now down to 4.93%. This is towards the high end of the historical norm, and quite high for the last 15 years.

 

[HornHuskerDad]

^Meanwhile my fixed income as a retiree continues to be fixed.

 

[mchammer]

Now we have too many eggs because demand is down due to shoppers cutting back on purchases.

Epic Collapse Of Egg Prices Shown In One Chart | ZeroHedge

 

[mchammer]

Home Prices Posted Largest Annual Drop in More Than 11 Years in April — The Wall Street Journal

 

[mchammer]

I am on record now of predicting a mild recession until the Fed starts to cut rates:

US Leading Economic Indicators Tumble For 13th Straight Month, "Weaknesses Were Widespread" | ZeroHedge

 

[mb227]

New York will soon tie its state minimum wage to inflation. As prices go up, so does the minimum wage.

A never ending cycle precisely because the left is bad at basic economic theory...

 

[Horn6721]

The masses are too stupid or lazy to figure out that system will not benefit them long term

 

[Chop]

Home Prices Posted Largest Annual Drop in More Than 11 Years in April — The Wall Street Journal

This was bound to happen, and in at least one sense, is a good thing. Housing prices have gotten way out of control. The incomes wouldn't support the price of housing. Housing prices were driven too far up based on speculative buying.

 

[Chop]

Now we have too many eggs because demand is down due to shoppers cutting back on purchases.

Epic Collapse Of Egg Prices Shown In One Chart | ZeroHedge

The chickens have ended their strike.

 

[mchammer]

The chickens have ended their strike.

Article says it will take a number of months before shoppers realize eggs have come down in price.

 

[Horn6721]

Huh?
So shoppers go to store and see eggs for $1.99 instead of $5.99 and it will take MONTHS for them to see the difference?

 

[mchammer]

Huh?
So shoppers go to store and see eggs for $1.99 instead of $5.99 and it will take MONTHS for them to see the difference?

Some people are creatures of habit. Once eggs are off the list, it takes a while to put them back on.

 

[Run Pincher]

Article says it will take a number of months before shoppers realize eggs have come down in price.

I saw it 2 weeks ago. Gonna be happy to not have to take out a loan to have an omelete.

 

[Monahorns]

^Meanwhile my fixed income as a retiree continues to be fixed.

HHD, you should really be for bitcoin adoption, gold reserve currency, ending the Fed, slashing the US Fed budget. All these things are involved inflation. If all the things I listed happened your fixed dollar income would increase in purchasing power over time.

 

[HornHuskerDad]

the left is bad at basic economic theory...

Exactly. Their basic economic principle is "Turn the printing press to print more money, then throw more money at every problem." Doesn't work.

 

[HornHuskerDad]

HHD, you should really be for bitcoin adoption, gold reserve currency, ending the Fed, slashing the US Fed budget. All these things are involved inflation. If all the things I listed happened your fixed dollar income would increase in purchasing power over time.

Monahorns, I'm definitely in favor of cutting the federal budget - the more money the USG prints to throw around, the worse inflation gets.

 

[Monahorns]

Monahorns, I'm definitely in favor of cutting the federal budget - the more money the USG prints to throw around, the worse inflation gets.

Money printing can't happen without fiat currency, central banking, restrictive legal tender laws, fractional reserve banking.

 

[ViperHorn]

Housing prices are down because increasing interest rates and down payment demands mean the available inventory is overpriced relative to the lack of discretionary housing income (in other words people are struggling to keep what they have).