Are You Concerned About Inflation?

by Simon 112 Replies latest social current

  • shepherdless

    Interesting question, and an interesting discussion. I generally agree with Simon. Others have already said a lot of what I would say.

    I see someone referenced Modern Monetary Theory. Under MMT, quantative easing doesn’t necessarily lead to inflation. However, according to more traditional economic principles, quantative easing is very inflationary. Most economists do not have any faith in MMT. It has been labeled “Magic Pudding” economics by some.

    The way that all the major governments in the world have increased their debt, printed large amounts of money (via quantative easing) and held interest rates incredibly low, is extremely worrying. It can only end in one of 3 ways, all of them bad, with rampant inflation being the least worst outcome.

    So why isn’t inflation already rampant? I think that that is because (a) workers everywhere aren’t in any mood to demand higher wages at the moment, and (b) colossal amounts of capital are being destroyed by zombie companies at the moment.

    Finally just a note about this all being “a plan by a Lefty cabal”. It is true that Irresponsible economic management more often than not comes from left of centre governments, particularly far-left governments such as Venezuela. However some supposedly conservative governments are just as irresponsible. There is no plan; there is no mastermind; there is no secret meetings. It is mostly about politicians acting short term to match election cycles, doing things that give short term sugar hits and long term damage.

  • Simon

    So inflation is really kicking in now and the money printing presses are still going "whirrrrr" at full speed.

    The official figures shows a jump of 6.2% in Oct, the highest for 30 years. The real rates, without the manipulation where they don't count food, heating, housing, transport or, well, it's probably only including flat-screen TVs now 'cause they always get cheaper ... it's easily 15%

    The bottom line is that our money is losing its purchasing power at an alarming and increasing rate and wages are not going up in sync. There are going to be some very hurt people when they finally wake up to it, probably too late. If you are at or near retirement, they just stole half of what you had. If you are saving for retirement, better hope you can outperform Warren Buffet over a 20-30 year stretch. God knows how young people are supposed to buy a house with the prices going up like they are (the only saving grace is that the artificially low interest rates means the debt will be devalued).

    On top of it all, any money you do have is going to be taxed more as well, just to rub salt into the wounds.

    [sorry, image wouldn't post]

  • Brock Talon
    Brock Talon

    The rising inflation is just one of the things that makes it feel like we are living in the 1970's Jimmy Carter presidency all over again.

    I was old enough to remember it, if not vaguely and I remember the lines at the gas stations because of the oil crisis. Eventually we all had to fill up at the gas station on odd or even days of the month depending on the odd or even license plate numbers. (I believe we were limited on the amount of gas we could get on one visit too.) I was too young to understand inflation, but I do remember my father complaining about it. And I remember the Iran hostage situation, which ran daily on the news at the time.

    The thing is, this is not the 1970s. That was a much more innocent time then. It was an era where our news sources were not biased one way or the other, at least, it was not apparent. The Iran hostage crisis is an example. The media (which was pretty much only 3 TV stations and your local paper) all talked about it daily, and complained that Carter was not doing much about it. Republican Presidential candidate Ronald Regan said exactly what he would do. I remember that quite vividly because my mother commented that he was a "war monger" and that he would get us all killed. We all know now how that actually played out. So much for mom's liberal viewpoint on things.

    Today the left leaning media would not play out any crisis like that for a Democrat president. Look how they have downplayed and then just not talk about the Afghanistan hostage crisis, which is WAY worse than Carter's Iran crisis. Jimmy Carter bungled a crisis he had placed on his lap, but Biden bungled a crisis he caused. He continues to bungle it.

    Look at how the lefty media ignores the border crisis, again, another self-inflicted one by Joe Biden. He continues to bungle it actually. The only smart thing he did was to reestablish the Stay in Mexico agreement. Other than that, nothing. Biden leaves it to the laughing hyena Harris, who also does nothing.

    Look at how the lefty media excuses the COVID vaccine mandates which is causing yet another crisis, one of losing millions of previously deemed hero "essential workers" who are now being kicked to the curb for wanting autonomy over their own bodies. Biden is doubling down on this nonsense.

    Now we are facing a supply chain crisis, which to be fair Biden did inherit (due to COVID 19 shutdowns of so many businesses, ridiculous regulations in Democratic run states with ports like California and New York, etc.) but Biden has on cue, made it worse by declaring war on the oil, gas and coal industries and has shut down as many of them as he can. Now he is out begging for fuel from OPEC (who laugh at him) and the U.S. now is nearly 100% dependent on this fuel source from, well, countries who are mostly our enemies. To be fair, the supply chain crisis is a complex issue, but we certainly did not have an oil, natural gas and coal problem on our hands during Trump's presidency because the U.S. became 100% independent on that front. Biden has completely wrecked that in just 10 short months. Biden has made no movement to fix this, only make it worse by things like the COVID vaccines mandates. No, Biden leaves this to his Secretary of Transportation, Pete Butigieg, who promptly went on the record as saying this was the new normal "until the Pandemic was over" and we would just have to live with it. Then Pete went on extended paternity leave.

    Now bad actors like China, Iran, Russia and the like are emboldened to do pretty much what they want again. It's like the adult left the room and they sent in a substitute teacher who really is a kid himself and has no control over the bullies. Biden has absolutely zero respect from the world's worse actors. With Trump, peace was literally breaking out in the Middle East and instead of receiving a Nobel prize for it, he was labeled a racist and impeached for nonsense. Trump had North Korea and Iran on their knees. Trump made friends with Putin and reined in any shenanigans from Russia. Trump has China on the defense. Now all of these countries are free to do as they please again, which is NOT good for the U.S or the rest of the world.

    No, this is not a replay of the 1970's. It is WAY WORSE. Jimmy Carter would never dream of trying to spend his way out of inflation and propose multi-trillion dollar spending sprees on nonsense. Biden does. AND he claims it is "all paid for"...But all the billionaires in the United States, if you took all their money away and paid for that spending bill, their money could not cover it. So where exactly does the money come from? Well, the fact that the Democrats are proposing a new way of trolling through all our bank accounts (anyone with $600 dollars of movement per year or more, later changed to $10,000) and the fact they want to add tens of thousands of new IRS agents, tells anyone with half a brain the Dems are NOT going after the 1% only. Why add all those agents for such few people? Why mull through accounts with a paltry $10,000 in movement per year? Answer: they are going after ALL of us!

    (Notice in the above Wikipedia link that the 400 wealthiest people in the U.S. together are worth only $3.2 trillion. So how do we pay for the Dems original 3.5 trillion bill by taxing them?)

    And yes, on top of that, they are inflating away the net worth we have actually been able to acquire.

    So, do I worry about inflation? You bet your sweet bippy I do. I can only hope my physical gold and silver, paper gold and silver, my bitcoin account and the fact that my home is paid off will protect my family to some degree.

    If we go into hyperinflation or the dollar actually collapses? God help us all.

  • Simon

    The US has become a dysfunctional country that can't get no-brainer decisions right.

    Take the supply chain crisis. Hundreds of container ships, waiting offshore to unload, but docks only work 9-5 hours because "unions". I bet you thought ports would be 24x7 operations even before this crisis, because why wouldn't they be like airports?

    The other union-inspired dumb-fuckery that makes the crisis worse is that ships are only allowed to go to ONE port. Now think about this, they claim there is a climate crisis and yet they have rules in place that prevent ships from dropping multiple cargos at the ports closest to their destinations, forcing those containers to travel further by road instead. What happened to "climate! climate! climate!"? Unions and democrat party donations, that's what.

    The US has ceased to be a place where things get done, it's become a place of sleazy corruption and ineptitude.

    Regular people are just the victims of the broken system, but then so many apparently vote for the people who create it that it's hard to have much sympathy. The EU is equally as bad. Maybe it's something todo with government being so large, the huge inefficiencies and corruption can easily hide in plain view and the momentum of government makes fixing things too difficult to ever get done.

    Once a bad decision has been made, it's impossible to revert, so it becomes a death-spiral.

  • road to nowhere
    road to nowhere

    My (faulty at times) memory says some things have doubled over the last 2 or 3 years.

    I don't know if it is factored in, but things that would store seldom go on sale. We used to buy extra peanut butter, detergent, canned goods, anything we would use when it was on special. I still have to argue with myself to buy things without the shopping around. The extra gasoline is an ignored consideration. We still plan, Walmart produce is usually poorer quality than a further away grocer, and there are still a few luxury (Target couponed filet) we splurge on.

  • hoser

    North America effed up by thinking they could save money by outsourcing all of our manufacturing.

  • Simon
    We still plan, Walmart produce is usually poorer quality than a further away grocer

    Walmart specialize in package-size deflation - things may not get more expensive, but the package sizes go down. They often have specially made products by manufacturers (because they are a big buyer) so the prices match other stores but you get less, so they are really more expensive. Sneaky eh?!


    “I hope when the vaccine rolls out that the supply chains go back to normal.”

    LOL!!! LOL!!!! LOL!!!!!!!!!


    DD 😵‍💫

  • Jazzbo

    Yes, I am worried. Inflation is a nasty and serious hit on pretty much everyone. The people that are mumphing about how beneficial it is are economic fools.

  • Simon

    So the official inflation rate is now the highest it's been for 40 years - 6.8%

    If the original methodology for measuring it had been kept, which would allow proper comparison, the rate would easily be +15%, possibly 20% or more.

    Scary times, and it will have big implications. Biden's money printers are stealing the money from your bank account and will then tax you for the fictitious "gains" you've made in investments, which are really due to currency devaluation. Double theft.

    We're undergoing a massive wealth transfer from the poor and middle classes to the ultra-wealthy.

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