INFLATION-- Tariffs—Canada sweating bullets; Mexico kissing Trump's a$$

Energy in ethanol isn’t close to gasoline so mileage suffers as percent rises. Modifications have been made to cars protecting hoses and other susceptible parts all which cost $$. Except for another outlet for farmers to sell their corn, I have never thought it had merit.
 
it's the total opposite in which Sleepy professes to seek. Less MPH and more burning of fossil fuels. Plus bump up prices again on food.
 
Ben Shapiro: Yes, it's Biden's inflation

So, what is the problem? The problem lies in loose monetary policy from the Federal Reserve for years on end, combined with wildly irresponsible economic policy from the Biden administration. Begin with the Federal Reserve. Between 2008 and 2015, the Federal Funds Effective Rate was essentially zero. It rose to 2.39% in May 2019, then dove back down to zero amidst the COVID-19 recession. This means that the Federal Reserve essentially subsidized borrowing and spending for years on end.

But the problem didn’t stop there. During the COVID-19 downturn, the Federal Reserve purchased some $4 trillion in assets, injecting liquidity into the economy in the mistaken belief that the problem was lack of demand, not lack of supply. This superheated the economy; as supply chains attenuated, prices rose dramatically.

All of this was accompanied by ridiculously spendthrift policy from the Biden administration.

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Now here's a different explanation as to root causes of the high inflation, it does like this:

It's the greedy corporations making record profits. If those greedos would just ease back on their excessive and obscene profits, perhaps inflation wouldn't be such a problem.



Data from the U.S. Commerce Department shows that corporate profit margins are the largest they've been in 70 years, and that's caused progressive leaders like Senators Bernie Sanders and Elizabeth Warren to cry foul, saying some companies are using the pandemic as a cover to raise prices far more than is warranted.
 
Chop said:
Now here's a different explanation as to root causes of the high inflation, it does like this:

It's the greedy corporations making record profits. If those greedos would just ease back on their excessive and obscene profits, perhaps inflation wouldn't be such a problem.



Data from the U.S. Commerce Department shows that corporate profit margins are the largest they've been in 70 years, and that's caused progressive leaders like Senators Bernie Sanders and Elizabeth Warren to cry foul, saying some companies are using the pandemic as a cover to raise prices far more than is warranted.
Click to expand...

Corporations are raising prices for 2 reasons:
1. Higher margins are needed to justify expansions
2. Costly regulations pushed by dems have restricted competition.
 
Corporations are raising prices for 2 reasons:
1. Higher margins are needed to justify expansions
2. Costly regulations pushed by dems have restricted competition.
Click to expand...

3. The price isn't always rising, sometimes it just takes a lot more dollars than it used to take to achieve the same price.
 
I mean that's just what inflation literally is - the individual dollar is not worth as much, so you have spent more of them even if you're only paying the same amount of value as before.
 
Most of you on here have diagnosed the source of inflation correctly. But the big question is anybody radical enough to call for the type of change necessary to solve the problem.

1. Drastically cut government spending to eliminate the deficit. Borrowing leads to inflation. That means cutting military, headcount, bureaucrat salaries, and all social programs.

2. End the Federal Reserve. Let interest rates float based on a market signal. This allows us to rebuild capital. That leads to more wealth and higher real economic growth.

3. Allow for currency competition. Everything should be on the table. Gold. Silver. Bitcoin. Ethereum. Let the best money win. Valuable money means your bank account keeps its buying power or even grows while it sits there. This is what our ancestors enjoyed. It incentivizes savings.

4. Set higher reserve requirements at the least. Fractional reserve banking is what caused bank runs in the past and was the justification for the Fed.
 
Biden admin announces 'reset,' will resume oil, gas leases in attempt to ease damage he's done to Americans

The Biden administration finally comes around (partially, and in a small way) on O&G drilling on federal lands.

Secretary of the Interior Deb Haaland released a statement Friday to announce the resumption of drilling leases on select federal lands...

This appears to be an act of desperation to drive inflation down, and was the result of a court injuction that the Biden admin is appealing... Their hearts and minds sure aren't in to it (see tweet below). Only a relatively small piece of federal lands are included. Still, it's a small step in the right direction. Now when they open up the entire Gulf federal waters to unrestricted drilling (including off Florida), then we'll know they mean business.

 
Inflation hits the restaurant business hard:

Restaurant costs have increased ‘tremendously’ amid inflation: Wolfgang Puck

National Restaurant Brands Announce Menu Price Increases as Inflation Reaches 40-Year High

The cost of dining out isn’t going down any time soon. Restaurants have announced menu price increases for several months now as inflation continues to rise and reaches numbers that haven’t been seen in decades.

And there's some demand-destruction in the restaurant industry, as lower income folks eat out less often with the higher restaurant prices:

“Consumers are becoming more sensitive to price,” said Krishnakumar Davey, president of strategic analytics at IRI Worldwide, a provider of market research and data. “March is the turning point.”

The dropoff in spending, executives and analysts say, is most pronounced in lower-income families as inflation overtakes those wage gains.
 
More restaurant inflation stuff:

Restaurant Menu Prices Continue to Climb | QSR magazine

Much of the jump in menu prices has been influenced by the rising costs of commodities. According to the most recent Producer Price Index, food prices increased 12.8 percent year-over-year, including jumps in beef and veal (43.9 percent), grains (22 percent), shortening and cooking oils (36.4 percent), and eggs (40.9 percent).

Restaurants have also continued to raise wages to attract and retain workers, but the labor market continues to be difficult. Food and drink establishments only added 61,000 jobs in March.

Additionally, in February, 863,000 quit their jobs in leisure and hospitality, representing about 21 percent of the private sector.

February

  • Food away from home index: 6.8 percent
  • Quick service menu prices: 8 percent
  • Full service menu prices : 7.5 percent
 
One take-away from the above: look for service to suffer more-and-more in restaurants. Some diners will NOT be pleased...

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Dow tumbles nearly 1,000 points as Federal Reserve signals sharper interest rate hike

The Fed is looking at sharper rate hikes to get inflation under control.

"I would say that 50 basis points will be on the table for the May meeting," Powell said.
"We continue to expect two 50-basis-point rate hikes in May and June," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a report. "Any subsequent action will depend not only on the path of inflation but also the economy's response to rapid rate increases over the next few months."
 
https://www.cnbc.com/2022/04/21/pow...50-basis-point-hike-on-the-table-for-may.html

The Fed is like that guy who is late to the party, but immediately starts doing shots and keg stands once he arrives.


“It is appropriate in my view to be moving a little more quickly” to raise interest rates, Powell said while part of an International Monetary Fund panel moderated by CNBC’s Sara Eisen. “I also think there is something to be said for front-end loading any accommodation one thinks is appropriate. ... I would say 50 basis points will be on the table for the May meeting.”

Powell’s statements essentially meet market expectations that the Fed will depart from its usual 25 basis point hikes and move more quickly to tame inflation that is running at its fastest pace in more than 40 years. A basis point equals 0.01 percentage point.

Of course, by historical standards, the interest rates will still be very low...
 
Chop said:
Dow tumbles nearly 1,000 points as Federal Reserve signals sharper interest rate hike

The Fed is looking at sharper rate hikes to get inflation under control.

"I would say that 50 basis points will be on the table for the May meeting," Powell said.
"We continue to expect two 50-basis-point rate hikes in May and June," Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said in a report. "Any subsequent action will depend not only on the path of inflation but also the economy's response to rapid rate increases over the next few months."
Click to expand...

This is inevitable. The Fed must also sell assets on its balance sheet including all those mortgages. Get our property out of the hands of the US regime. Then they should delete that money if possible.

But a recession when they do this is inevitable.
 
And the hits just keep on comin...last trip to the commissary (every other week) hit $360. Last year a typical trip to the commissary was about $200. At least I'm grateful that the commissary was reasonably well-stocked in the number one item on my list - cat food. :)
 
HornHuskerDad said:
And the hits just keep on comin...last trip to the commissary (every other week) hit $360. Last year a typical trip to the commissary was about $200. At least I'm grateful that the commissary was reasonably well-stocked in the number one item on my list - cat food. :)
Click to expand...
Just invite a bunch of mice to live with you.
 
Fed to fight inflation with fastest rate hikes in decades

After its latest rate-setting meeting ends Wednesday, the Fed will almost certainly announce that it’s raising its benchmark short-term interest rate by a half-percentage point - the sharpest rate hike since 2000. The Fed will likely carry out another half-point rate hike at its next meeting in June and possibly at the next one after that, in July. Economists foresee still further rate hikes in the months to follow.

Fed is also expected to announce Wednesday that it will begin quickly shrinking its vast stockpile of Treasury and mortgage bonds beginning in June - a move that will have the effect of further tightening credit.
 
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