INFLATION--FED announces 0.50% interest rate cut

[HornHuskerDad]

Empty shelves all over town.

I went to my local Tom Thumb earlier this week to pick up a "few items" on my wife's list. There was not a single can of cat food on the shelf - none, zip, nada. In my house running out of cat food would be a crisis of the first order!
The next day I drove out to Carswell to go to the commissary for our main shopping - fortunately, the commissary had some cat food. So disaster is averted for the short run.

 

[LousianaHorn]

Fritos are in Short supply up here in NW LA................

 

[Vol Horn 4 Life]

I went to my local Tom Thumb earlier this week to pick up a "few items" on my wife's list. There was not a single can of cat food on the shelf - none, zip, nada. In my house running out of cat food would be a crisis of the first order!
The next day I drove out to Carswell to go to the commissary for our main shopping - fortunately, the commissary had some cat food. So disaster is averted for the short run.

You might want to stock up. Cat food is scarce these days and has been for several weeks. If you find it get plenty.

 

[mb227]

You might want to stock up. Cat food is scarce these days and has been for several weeks. If you find it get plenty.

This has been surprisingly accurate...it has been a while since Mom was able to get a completed order through Chewy.

Cat litter is ALSO becoming surprisingly scarce. Who knew that scented clay could be a precious commodity.

 

[mchammer]

New inflation report today : 7.5% inflation.

 

[mchammer]

 

[Chop]

"Inflation has likely peaked" the article says...

Sounds like some wishful thinking.

 

[HornHuskerDad]

You might want to stock up. Cat food is scarce these days and has been for several weeks. If you find it get plenty.

Vol Horn, I hate to admit that you've nailed it. I recall last year when we were irritated at people hoarding toilet paper - and the stores (commissary included) started putting limits on purchases. I may have to hoard a bunch of cat food - I do not want to become a hoarder, but I also don't want my cats to go hungry.
They don't understand shortages. Their approach is simple - "Master, it's dinnertime and we're hungry. The food dishes are empty - make them full NOW!"

 

[Vol Horn 4 Life]

Vol Horn, I hate to admit that you've nailed it. I recall last year when we were irritated at people hoarding toilet paper - and the stores (commissary included) started putting limits on purchases. I may have to hoard a bunch of cat food - I do not want to become a hoarder, but I also don't want my cats to go hungry.
They don't understand shortages. Their approach is simple - "Master, it's dinnertime and we're hungry. The food dishes are empty - make them full NOW!"

Yeah, but feeding your cat is much more important than having a closet full of toilet paper. I mean I guess you could feed it....gulp...dog food.

 

[mb227]

"Inflation has likely peaked" the article says...

Sounds like some wishful thinking.

It was wishful thinking back in July, when the article was written. Now it is simply downright delusional...which means it is just another day in the Jill Biden administration.

 

[Chop]

A slow play incremental raising of interest rates by the Fed may slow the rise of inflation, but I think it still has a way to go before it peaks. With a few sets of minor Fed action, Inflation may not be a runaway train, but it will probably still be a train moving forward.

Hope I'm wrong...

 

[Chop]

Possible solutions:

The Fed does some minor/moderate raises of the interest rate, and keeps doing them.

Get energy prices down. Executive orders allowing nearly unrestricted drilling for oil and gas (something I'm consistently always for...). More executive orders allowing pipelining. An executive order putting a temporary moratorium on the Jones Act until this gets under control. Lower taxes on energy and transportation companies (trucking, rail). Executive orders easing up environmental (but not safety) regulations on refiners. Auction off all blocks of the Gulf for drilling. If Florida pees in their panties--too bad. Executive order lifting all gas taxes until this gets under control.
(of course, high energy prices are quite good for many, and for this State in general... Just thinking Nationally.)

Lower tariffs.

Bracero program for Ag workers.

Send National Guardsmen to guard the railways in California.

Don't tax inventory.

Truckers, and food processing workers pay no income taxes for the next 2-3 years.

Stuff like that...

 

[Sangre Naranjada]

Vol Horn, I hate to admit that you've nailed it. I recall last year when we were irritated at people hoarding toilet paper - and the stores (commissary included) started putting limits on purchases. I may have to hoard a bunch of cat food - I do not want to become a hoarder, but I also don't want my cats to go hungry.
They don't understand shortages. Their approach is simple - "Master, it's dinnertime and we're hungry. The food dishes are empty - make them full NOW!"

Agree, but if you think your cats are calling you "Master" you are incredibly naïve.

 

[Chop]

Simple solution--cook tenderloin and grind it up real fine. Poor the au jus over it. Feed that to your cat on your finest China. The cat may forgive you.

 

[Monahorns]

The Fed does some minor/moderate raises of the interest rate, and keeps doing them.

This won't happen. The Fed will chicken out. They don't really care about inflation. They care about keeping asset prices up to continue sucking wealth out of the economy for them and their friends. It will probably take a COVID trucker convoy level protest to force enough rate increases to bring inflation down.

 

[Seattle Husker]

This won't happen. The Fed will chicken out. They don't really care about inflation. They care about keeping asset prices up to continue sucking wealth out of the economy for them and their friends. It will probably take a COVID trucker convoy level protest to force enough rate increases to bring inflation down.

Hasn't the Fed already announced that they'll start raising the rates in March? I'm anticipating ~10 raises to by the EOY.

 

[mb227]

Hasn't the Fed already announced that they'll start raising the rates in March? I'm anticipating ~10 raises to by the EOY.

Announcing and having the balls to follow through are two entirely different things, especially under this ClownShow administration. There should ALREADY have been raises. Each time they had a chance, they backed down.

 

[AC]

we are at the end of the monetary system cycle. The next 1-4 years will see massive upheaval due to bringing us on a new system.

 

[Seattle Husker]

we are at the end of the monetary system cycle. The next 1-4 years will see massive upheaval due to bringing us on a new system.

@AC should simply put in his signature that he owns a small business focused on BitCoin ATMs. When Bitcoin was North of $60k he was claiming we'd be at $100k by now rather than the $43k we currently sit.

 

[Seattle Husker]

Announcing and having the balls to follow through are two entirely different things, especially under this ClownShow administration. There should ALREADY have been raises. Each time they had a chance, they backed down.

The signs of interest rate hikes now weren't the same as prior. Inflation, employee compensation, everything but our supply chain issues are pointing to an overheated economy that screams for the interest rate hikes. Happy to entertain a friendly wager with anyone that thinks the Feds won't raise rates in March.

 

[Monahorns]

Hasn't the Fed already announced that they'll start raising the rates in March? I'm anticipating ~10 raises to by the EOY.

Who cares what they announce? They won't do it. They announced a schedule of raises in 2018 and quit after 1 or 2 because it threatened asset prices. Now they changed their inflation targets to give themselves more room to justify high inflation.

Their actions are clear. They don't care about inflation.

 

[Monahorns]

Announcing and having the balls to follow through are two entirely different things, especially under this ClownShow administration. There should ALREADY have been raises. Each time they had a chance, they backed down.

It isn't about THIS administration. The same thing happened under Trump. Republicans are just as responsible for the $hitshow economy we have.

 

[Seattle Husker]

Who cares what they announce? They won't do it. They announced a schedule of raises in 2018 and quit after 1 or 2 because it threatened asset prices. Now they changed their inflation targets to give themselves more room to justify high inflation.

Their actions are clear. They don't care about inflation.

I don't think they care about lower inflation. They've said as much. The current level of inflation they can't turn their back on, IMHO. Back in 2018 we had ~2.4% inflation which is around their target of "good" inflation. They stopped the rate hikes because inflation dropped below 2% again (2019 1.8%, 2020 1.2%). We would have seen rate hikes in 2021 if not for the start/stop nature of the Pandemic.

I'm not here to say the Fed is altruistic. They have shown an over-reliance on propping up the asset markets, or at least letting them had too much influence in their decisions. My statement here is that this time they'll very likely raise rates.

 

[mb227]

The signs of interest rate hikes now weren't the same as prior. Inflation, employee compensation, everything but our supply chain issues are pointing to an overheated economy that screams for the interest rate hikes. Happy to entertain a friendly wager with anyone that thinks the Feds won't raise rates in March.

Even if they follow through, it won't be anything that has a meaningful impact because they don't want their base to start whining because their credit card APR went up a half point and that they cannot afford the half point on their ARM...there will be consumers whining even on a quarter point. Get the full point and be done with it. The hand-to-mouth demographic that spends every penny they get and is broke deserves what they get for over-spending. The economy should not suffer because people are incapable of managing their finances in a responsible fashion...

Let's get the foreclosure train rolling so that housing markets come back to earth...

 

[AC]

Who cares what they announce? They won't do it. They announced a schedule of raises in 2018 and quit after 1 or 2 because it threatened asset prices. Now they changed their inflation targets to give themselves more room to justify high inflation.

Their actions are clear. They don't care about inflation.

yep, they live and die off of asset inflation. They don’t care if economic inflation (gas, food, rent) guts the middle class. No rate hike in March or if they do it’s 25 bps. And they stop after 1-2 rate hikes. My guess is zero rate hikes. 11.5% 10 yr yield rates=$3.3 trillion in debt service per year to the Fed. That is really why they can only talk about rate hikes. Our whole monetary system has to come down, and transition.
As for the BTC dip. Business was slower in Dec, Jan but looking better now. It had to cool off after running up 1100% since March 2020! We laugh at 54% dips and buy them. So no worries.

 

[Monahorns]

My statement here is that this time they'll very likely raise rates.

My statement is that there is no chance they follow through with the schedule they are discussing right now.

 

[nashhorn]

I don’t know if they’ll raise rates or not but I do know real inflation is a lot higher than 7.5%.

 

[AC]

I don’t know if they’ll raise rates or not but I do know real inflation is a lot higher than 7.5%.

In Texas it’s 14% to 15% real inflation and rising fast. It may be a point higher already. Chapwoodindex.com used to track real inflation in every US major market. It shut down in 2020. The Fed stopped tracking M2 money supply in early 2021. I wonder why??

 

[AC]

https://cms.zerohedge.com/s3/files/inline-images/2022-02-09_15-39-25.jpg?itok=BfUJ4IAE
Past global reserve currencies! And the future.

 

[iatrogenic]

Biden is solving all problems with free crack.

Granny iatrogenic solved the horrendous lack of cat food problem some of you face by taking the barn cat’s offspring, whacking em in the head, and throwing them in the burn barrel. Hey, times were always tough on the farm…..