Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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.
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.
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.
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.
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.
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
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.