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There will never be any relief from this. Exploding prices are an unavoidable consequence of printing funny money without the economic activity and productivity to absorb it.
If big deficits, QE and "money printing" caused inflation, we would have had inflation for the last 12 years. We didn't. The recent price inflation is due to a shortage of supply, not an excess of money.
If big deficits, QE and "money printing" caused inflation, we would have had inflation for the last 12 years. We didn't. The recent price inflation is due to a shortage of supply, not an excess of money.
QE and funny money printing don't cause inflation, QE and funny money printing are inflation. Rising prices are only one symptom of inflation. And there were actually rising prices every year over the past 12 years- even using the cooked CPI.
You can buy a car but now they are selling for MSRP or above (I believe $45k+ is average now).
People are seeing inflated prices for groceries and a slew of other things.
Fuel prices are creeping up to 2009ish levels where people were buying up all kinds of econo car. Now people are paying insane amounts of money for full size trucks/SUVs that get 17 mpg.
Collectibles of all kinds are going for insane amounts of money. As an example, I remember a few years ago when Michael Jordan rookie cards were like $5-10k — now they are $50k-$500k.
Will there come a point soon where those (cash rich?) not taking on all this debt will breathe a sigh of relief and clean up with lower prices?
I remember 2009/10 as not that bad — my parents were people that always lived below their means so despite their 401ks taking a hit, life was good when everything seemed very cheap back then. I remember dealerships almost giving away cars. I remember handymen/construction people on Facebook marketplace begging for work and you could get something fixed quick and cheap.
Have you not read about supply chain issues? This problem has been looming for months and months.
Basically what you're witnessing is the first death knells of globalism. When you need twenty-seven ingredients for a gallon of paint, and half of those ingredients have to be loaded into a container and shipped around the globe, the whole system gets bolloxed in a hurry if a couple of ports in China are shut down due to Covid.
This is nothing more than the Law of Supply and Demand writ large. Cars costs what they do because the chip plant in Malaysia that makes most automotive chips can't make and ship them fast enough due to Covid. Gas costs more than it did a year ago, not because Biden shut down construction of a pipeline, but rather because refiners decided to make more profit by producing less gasoline.
The Age of Cheap Everything is over. We're into the Age of Availability.
Eco 101 will teach you what you obviously don’t know .
Demand pull inflation is not from money supply issues nor can you fix it with money supply policy.
We are seeing mostly demand pull inflation and fed policy can’t fix that or cause it
Maybe. Maybe not.
Inflation is sometimes simplified as "too much money chasing too few goods." Historically, inflation has almost exclusively been a monetary phenomenon (monetary policy creating too much money).
Currently, the supply chain disruption at the Ports of Los Angeles & Long Beach in California have created the "too few goods" problem. Some very bright economists think the "too few goods" is the majority of the inflation problem.
At the same time, some of the supply chain problem is not caused by the California's brain-damaged municipal regulations that inhibit alleviating the backlog at the ports. For example, I laugh out loud when I hear talking heads discuss the "chip shortage" affecting everything from automobiles to kitchen ovens being alleviated in the coming year or two. I spent far too much of my professional career in the semiconductor industry, and I understand the economics far too well for my own good. In my never very humble opinion, the "chip shortage" will last another 5+ years. It is tough to forecast past 5 years, but it will definitely be here through 2026/2027.
Most don’t have to much money chasing those goods ..in fact it isn’t buy this and that , for most it is buy this or that since they have to make what they do have stretch since they cant afford to buy this and that.
Many workers have not even returned to work.
The money supply does not have to change a penny and the weather can destroy an orange crop driving prices higher
Last edited by mathjak107; 11-12-2021 at 04:28 PM..
Most don’t have to much money chasing those goods ..in fact it isn’t buy this and that , for most it is buy this or that since they have to make what they do have stretch since they cant afford to buy this and that.
Many workers have not even returned to work.
The money supply does not have to change a penny and the weather can destroy an orange crop driving prices higher
Rising prices may very well be caused by inflation (an expanding money supply) but rising prices are in themselves, not inflation.
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
Have you not read about supply chain issues? This problem has been looming for months and months.
Basically what you're witnessing is the first death knells of globalism. When you need twenty-seven ingredients for a gallon of paint, and half of those ingredients have to be loaded into a container and shipped around the globe, the whole system gets bolloxed in a hurry if a couple of ports in China are shut down due to Covid.
This is nothing more than the Law of Supply and Demand writ large. Cars costs what they do because the chip plant in Malaysia that makes most automotive chips can't make and ship them fast enough due to Covid. Gas costs more than it did a year ago, not because Biden shut down construction of a pipeline, but rather because refiners decided to make more profit by producing less gasoline.
The Age of Cheap Everything is over. We're into the Age of Availability.
That's(the bolded) not really true. The refiners would refine more if they could get more oil, but US producers are not producing as much as they try to listen to shareholder desires to increase returns, and OPEC/Russia have constrained supply.
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