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Old 11-12-2021, 05:52 PM
 
Location: PNW
7,358 posts, read 3,117,046 times
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Quote:
Originally Posted by mathjak107 View Post
We are seeing most prices rising not from money supply ..one third of the cpi increases are car prices soaring from the chip shortage an$ supply disruptions on goods .

The place I get my breakfast can’t get coffee cups from their regular sources , they are paying a dollar a cup from other sources .

None of this is money supply issues …increase supplies and it goes away


Inflation is an increase in Prices. There are myriad reasons for increases in Prices. But, it boils down to supply and demand.

-The law of demand says that at higher prices, buyers will demand less of an economic good.
-The law of supply says that at higher prices, sellers will supply more of an economic good.
-These two laws interact to determine the actual market prices and volume of goods that are traded on a market.
-Several independent factors can affect the shape of market supply and demand, influencing both the prices and quantities that we observe in markets.


The Fed Stimulus checks increased Demand for goods and services by depositing money directly into people's accounts (especially people who didn't "need" the money). So, those people spent the money on discretionary items (including cars).

The Federal Reserve (which is Not the federal government by the way as shocking as that is) lowering interest rates is inflationary (inverse relationship between interest rates and prices (especially big ticket items of housing and cars).

This is long term transitory because either the Fed will be forced to increase interest rates or the demand will dry up because people will start balking at the prices and just not participate.

If they raise interest rates that could kill this party.
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Old 11-12-2021, 06:01 PM
 
106,202 posts, read 108,168,628 times
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The problem is the stimulus checks for the most part were not spent on new goods and services .they were banked and or went to pay down old debt .
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Old 11-12-2021, 06:07 PM
 
Location: PNW
7,358 posts, read 3,117,046 times
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Quote:
Originally Posted by mathjak107 View Post
The problem is the stimulus checks for the most part were not spent on new goods and services .they were banked and or went to pay down old debt .

Yeah, but, did the spend in anticipation of receiving the money? So, then, they charged things and paid them down once they received the money?

I wouldn't know as I didn't receive any Stim money. I don't have kids so I am penalized. Yet my cats are better cared for than most people's children -- LOL.
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Old 11-12-2021, 06:11 PM
 
Location: Flyover part of Virginia
4,230 posts, read 2,437,780 times
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Quote:
Originally Posted by mathjak107 View Post
The problem is the stimulus checks for the most part were not spent on new goods and services .they were banked and or went to pay down old debt .
The record high trade deficits disagrees with that assessment. LOL.
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Old 11-12-2021, 06:12 PM
 
Location: PNW
7,358 posts, read 3,117,046 times
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Quote:
Originally Posted by Taggerung View Post
The record high trade deficits disagrees with that assessment. LOL.
MathJak is referring to people paying down their personal credit card debt or other loans. He is not talking about the Federal Deficit or the Trade Deficit.
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Old 11-12-2021, 06:16 PM
 
Location: Flyover part of Virginia
4,230 posts, read 2,437,780 times
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Quote:
Originally Posted by Wile E. Coyote View Post
MathJak is referring to people paying down their personal credit card debt or other loans. He is not talking about the Federal Deficit or the Trade Deficit.
The record high trade deficits are a reflection of increased consumer spending by Americans on foreign made goods. Also, consumer credit is increasing, not decreasing, so that's a bunk theory.
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Old 11-12-2021, 07:59 PM
 
Location: PNW
7,358 posts, read 3,117,046 times
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Quote:
Originally Posted by Taggerung View Post
The record high trade deficits are a reflection of increased consumer spending by Americans on foreign made goods. Also, consumer credit is increasing, not decreasing, so that's a bunk theory.
The trade deficit was there before C-19 and the Stim. It's not my theory.
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Old 11-12-2021, 09:31 PM
 
Location: Gods country
8,090 posts, read 6,711,699 times
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I just spent $140 for dinner for 1 person in St Pete. A dozen oysters, 2, drinks, and grilled grouper.
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Old 11-12-2021, 11:25 PM
 
Location: PNW
7,358 posts, read 3,117,046 times
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Quote:
Originally Posted by Above Average Bear View Post
I just spent $140 for dinner for 1 person in St Pete. A dozen oysters, 2, drinks, and grilled grouper.

I feel a lot better about the pizza now -- LOL...
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Old 11-13-2021, 03:19 AM
 
106,202 posts, read 108,168,628 times
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Quote:
Originally Posted by Taggerung View Post
The record high trade deficits disagrees with that assessment. LOL.
False , that has no bearing on things at all.. trade deficits existin recession stock .spin again
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