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Inflation is good though, according to this article. I'm sure someone struggling check to check might not agree though.
First, inflation lessens the real value of debt. In 2020, American households had around $14.5 trillion in debt from their mortgages, credit cards, student loans, and other sources. Inflation of 6.2 percent means that the real value of that $14.5 trillion is now just $13.65 trillion in last year’s dollars.
The same economists who predicted economic gloom and disaster if TRUMP was elected, now tell us that inflation is a good thing, as their prediction that inflation would reverse itself last September failed to come to pass.
For months the Fed has said the inflation was temporary. They finally admitted that maybe it's not so temporary.
Finally going to taper off their pumping and raise rates.
Should have done that last year and let the economy do what it does naturally.
Our government is the source of our problems.....as it always turns out to be.
https://www.malaymail.com/news/money...threat/2028460
Fed Chair Jerome Powell has signalled that the central bank will pull back on its pandemic stimulus measures more quickly, which would put it in position to raise interest rates and try to quash the wave of rising prices that have hit American households.
..
Powell for months has argued that most of the price increases were due to temporary pandemic-linked factors that would dissipate, but in late November he acknowledged that inflation could be “persistent.”
This is shameful. They have been propping up the economy since 2008 with money printing. I hate the expression but now the chickens are coming home to roost.
I reposted it in post #12, the very post you quoted.
I even added a second source.
<personal jab edited out for brevity>
I'm aware. It was more a comment on your "I guess you didn't read it before commenting." snipe at scorpio. He/she couldn't "read it" because the link was/is broken, professor.
Fed is going to double the tapering from 15 billion to 30 billion and Advisor news said there will probably be three rate hikes in 2022 starting in June, then Sept and Dec.
Why would I waste my time trying to discuss anything with someone being demonstrably unreasonable?
I don't think the Labor Department nor CNBC are being unreasonable. They just stated the facts. Biden and the Fed's policies created this disaster. This is what people voted for and why so many now have buyers remorse.
It's okay for you to discuss the fact that your party and your choice for President are doing so poorly. It's just the way it is.
The guy who owns the taco express in our town says the prices of things like utensils, foam containers, cups, and plates in bulk has gone up 150% the last year.
I got into a discussion with him about the current economic situation as he's quite business savvy and he basically says we are damned if we do, damned if we don't as far as QE goes. If the Federal Reserve stopped buying bonds interest rates would quickly shoot up to 10% or more. High interest rates can cause high inflation when they go on for long enough. He kind of explained the reasoning behind it.
On the other hand if we keep way overspending more money than tax revenue brings in it will cause the same result. Basically we've been living on borrowed time since basically 2008 and an adjustment to wipe away excess debt is needed and is here, whether we like it or not, and no matter what we do.
The guy who owns the taco express in our town says the prices of things like utensils, foam containers, cups, and plates in bulk has gone up 150% the last year.
I got into a discussion with him about the current economic situation as he's quite business savvy and he basically says we are damned if we do, damned if we don't as far as QE goes. If the Federal Reserve stopped buying bonds interest rates would quickly shoot up to 10% or more. High interest rates can cause high inflation when they go on for long enough. He kind of explained the reasoning behind it.
On the other hand if we keep way overspending more money than tax revenue brings in it will cause the same result. Basically we've been living on borrowed time since basically 2008 and an adjustment to wipe away excess debt is needed and is here, whether we like it or not, and no matter what we do.
Ever since 2009, we have created a system where people think the government should be the answer to all problems by spending unreal amounts of money on giveaways and low/no interest loans.
The issue always is when the government provides something, it's nearly impossible to take it away. We are either going to rip the bandaid off and take away government intervention so the economy can go back to normal or we are going to continue to double down on stupid until such point we have persistent inflation to the point everything collapses.
I'm guessing we will do the later, because no politician has the guts to do the former, especially when the media will demonize him/her for doing the right thing.
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