INFLATION--FED announces 0.50% interest rate cut
- Thread starter Chop
- Start date
Believe me, those of us on a fixed income are well aware of inflation. I feel it every time I go to the grocery store or stop at the gas station. The 5.9% COLA on Social Security will help in January, but not now. And some of that COLA will be eroded by a huge increase in Medicare cost.
And I don't see any indication that the Biden administration cares.
And I don't see any indication that the Biden administration cares.
They don't. They also don't understand that printing trillions more dollars makes each individual dollar worth less. Thus, prices for commodities that hold their value increase. Inflation.
This is the kind of crap you get when you let idiotic, mal-educated (read: Ivy League), incompetent people run the government.
OUBubba
5,000+ Posts
Right with you there HHD. I used to splurge on occasion and buy tenderloins at Costco. Was great cause they were large enough to cut and get two meals, one a steak and the next machacado in the morning. Now I keep watching the price/lb go up every week there for awhile. Sirloin is now what tenderloin was, it’s good but not tenderloin. I know everything is up but that was my one luxury so I notice it more.
OUBubba
5,000+ Posts
I'm saying that this is a global thing and not necessarily the fault of the squad.
Not all of it but a country that represents 1/4 of the world's GDP does affect the entire globe. Likewise, if China has an economic collapse that some experts have said will happen we're all going to feel it.
Statalyzer
10,000+ Posts
It's amazing that anybody would be capable of not understanding this. It's pretty basic stuff.
Yet we have "experts" calling this inflation unexpected, surprising, etc, when tons of laymen loudly predicted it a year ago based on simple and obvious principles.
It is happening outside the US. That's one of the reasons why the € isn't killing the $ right now the way it was starting to a few months ago. (Ditto for the £.) However, that doesn't mean it isn't Biden's fault (though it isn't entirely his fault). Policy drives inflation - too many dollars chasing too few goods. Just beacuse the Eurozone nations are engaging in inflationary policies doesn't mean we have to. We're choosing it.
The outlier is Japan, which has been dealing with a stagnant value Yen and/or deflation (it's own problem), for decades.
The massive relief and $$$ printing had their place in an emergency and a truly bizarre and unprecedented year, but everyone honest about it saw the inflation coming on the horizon. The shipping backlog just compounded it. Artificial constrictions on energy supplies are self-inflicted and add more to the inflationary pressure. Remember, it was energy inflation that drove the general inflation that took down Jimmy Carter.
The massive relief and $$$ printing had their place in an emergency and a truly bizarre and unprecedented year, but everyone honest about it saw the inflation coming on the horizon. The shipping backlog just compounded it. Artificial constrictions on energy supplies are self-inflicted and add more to the inflationary pressure. Remember, it was energy inflation that drove the general inflation that took down Jimmy Carter.
beijinghorn1
500+ Posts
Some experts have been predicting an economic collapse in China for +20 years. I will say the wise guys are betting on continued economic expansion. As they say, wish in one hand and poop in the other and see which one fills up faster.
I found out over the weekend how real inflation is. I went to the Dollar store to get my usual bag of mixed nuts. Got home and opened it up and it had 1 peanut in it.
Don't overlook the numbnuts who refuse to acknowledge that increasing minimum wage will necessarily result in wage hikes elsewhere which necessarily results in costs going up for production, which means...drum roll please...cost to consumers goes up.
The left likes to trot out the 'cannot afford a home' trope on minimum wage while overlooking that 1) minimum wage typically means entry-level unskilled work and is not, for the past few generations, been intended to support a family, 2) the single entry-level wage worker usually has a roommate or three and is not supporting a family nor seeking the home the left uses in the tropes, and 3) given the free money that exists via student loans to unqualified borrowers, there is no reason that individual making minimum wage isn't gaining education to improve their standing in the workforce.
Those that put the student loans to GOOD use (meaning a productive degree or program) will find themselves better positioned. The ones who get useless degrees will ***** and moan about not finding the six-figure job they believe they are entitled to because of their Afro-Icelandic Gender Dance studies degree. The latter group goes on to whine about their lot in life, which leads to crappy policies that harm the economy.
Good to hear that nowadays they're loading up the mixed nuts with more cashews, almonds, philberts, and Brazil nuts, and not so many peanuts.
I think the optimal outcome would be a flattening out of their growth. A complete collapse over there would hurt everyone.
Politicians don't HAVE to enact policies to mollify stupid people with useless degrees.
They may both be incompetent, but I think there's one major difference. I actually believe Carter cared about the country. biden is nothing but first class pilferer, swindler and racketeer.
I'd vote for Al Capone before biden. He may load up his bank accounts with embezzlements, but he wouldn't put up with the woke BS.
Carter did some things right that were overshadowed by his failures. In contrast, Biden is doing nothing right.
EVERYBODY with a brain knows that easy money causes inflation. But not Democrats:
Senator Sherrod Brown on inflation: 'It's surely not government spending'
It's the same as the problem on the border; Democrats wave them over then deny they had anything to do with the hordes that showed up.
THEY. ARE. LIARS.
And their lies are HUGE because it covers for policy decisions are huge in their negative impact.
Senator Sherrod Brown on inflation: 'It's surely not government spending'
It's the same as the problem on the border; Democrats wave them over then deny they had anything to do with the hordes that showed up.
THEY. ARE. LIARS.
And their lies are HUGE because it covers for policy decisions are huge in their negative impact.
washparkhorn.2
< 25 Posts
Agree - far too few understand monetary policy. The $120 billion a month the Fed pumps into the markets to keep them afloat is the elephant in the room. That's not a fiscal policy problem; this is a monetary issue controlled by the Fed. The Fed believes it must keep pumping while tapering.
That tapering is occurring now: the Fed will only pump $105 billion this month. Can anyone imagine $105 billion a month? That subsidy does not flow to consumers. It props up the asset bubbles (see equities and housing markets). It's the legendary backstop for the financial sector provided by the Fed. It's welfare, but we generally call the Fed measures - economic stabilizers to avoid the obvious connection. The $120 billion a month has been flowing since March of 2020. This is this first attempt to slow that flow and, as expected, there is uncertainty.
We are in the "taper tantrum" phase between those who want a free $120 billion a month from the Fed v. the Fed trying to wean the markets off of the addictive $120 billion a month provided by the Fed.
Meanwhile China seeks it's own economic sphere - and threatens the US and her allies with military force. Russia is signaling it wants it own economic sphere and will use it's military. See Ukraine and former USSR satellite nations. And we have a global pandemic to top it all off (and complete dysfunction at home).
TLDR: I am not sure Americans understand the peril we find ourselves in. SNAFU - as usual.
p.s., I think it has been 10 years since I posted here. Good to see you guys still here guarding the fort.
Welcome back, Kotter.
They do understand. They're just lying. All of them.
And the sad thing about Liberals is they think the positive metrics that Obama achieved were due to his genius economic policies. They were all bought and paid for by doubling the national debt along with the QE and other money printing schemes.
And always remember, the big money privatizes gains and socializes losses.
And the sad thing about Liberals is they think the positive metrics that Obama achieved were due to his genius economic policies. They were all bought and paid for by doubling the national debt along with the QE and other money printing schemes.
And always remember, the big money privatizes gains and socializes losses.
Carter began the defense buildup late in his term, pushed for the development of ALCMs rather than the B-1 (which ended up being a smarter move), negotiated the Camp David Accords, appointed Paul Volcker to the Fed, and began the deregulation (especially of airlines) that Reagan continued. Carter did some very big things wrong, but he did some smaller but still substantial things very right.
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Ding! Ding! Ding! we have a winner!
Exactly, Run Pincher. IMO, Jimmy Carter was a well-intentioned, honorable man who was simply in a job that was too big for him to handle.
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