INFLATION IS OUR FRIEND

One notable difference, there wasn?t a pandemic and our national debts was a non issues. When you have this high of a debts as we are now, couple with double digits inflation, and a nuclear threats of war. Putin laid that on the table. It?s a road we have not gone down before. Abyss! Unless we follow Senator Graham advise.
 
Compressed-Village said:
One notable difference, there wasn?t a pandemic and our national debts was a non issues. When you have this high of a debts as we are now, couple with double digits inflation, and a nuclear threats of war. Putin laid that on the table. It?s a road we have not gone down before. Abyss! Unless we follow Senator Graham advise.
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I disagree...the debt was an issue, just not as big. (add a few inflationary zeros and the gas prices were in the .30-.90 cent range)  Also the war in middle east and the Iran hostage situation had us on the brink of all out war and several proxy wars.  It can be argued easily that things were worse in either decade but not markedly different.
 
morekaos said:
Compressed-Village said:
One notable difference, there wasn?t a pandemic and our national debts was a non issues. When you have this high of a debts as we are now, couple with double digits inflation, and a nuclear threats of war. Putin laid that on the table. It?s a road we have not gone down before. Abyss! Unless we follow Senator Graham advise.
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I disagree...the debt was an issue, just not as big. (add a few inflationary zeros and the gas prices were in the .30-.90 cent range)  Also the war in middle east and the Iran hostage situation had us on the brink of all out war and several proxy wars.  It can be argued easily that things were worse in either decade but not markedly different.
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But the people's view of what the government's role in propping things up has changed. Counterproductive to fighting inflation is handing out money.

During the 70's social security increases were big, something not seen in many many years. A few big raises with more people receiving benefits is only going to make matters worse. Plus these raises are not going to keep up with inflation at all and medicare premiums are going to eat away what increase old people get anyway. Not lost on legislatures is that seniors vote.

While Powell tries to quelch inflation, the government is going to do it's best to buy votes.
 
So what broke the back of inflation back in the 80s?  Was it the high interest rates or was it the recession or both?
 
Higher interest rates lead to recessions that break inflation. It?s a classic business cycle. Each has different velocities and specifics but all follow the same path.
 
USCTrojanCPA said:
So what broke the back of inflation back in the 80s?  Was it the high interest rates or was it the recession or both?
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Both.
Aerospace was really bad in the late 70s and hurt our local economy but Volker didn't raise rates for years after that.

I remember that recession just being bad bad bad. Lots of big name stores went under.
 
?and don?t forget your congressman?breathtakingly stupid!?

Stimulus checks for high gas prices? Here?s how it could happen

A group of Democratic lawmakers are looking to ease the burden on American motorists who are saddled with higher gas prices by offering another round of stimulus checks.

House Reps. Mike Thompson of California, John Larson of Connecticut and Lauren Underwood of Illinois are co-sponsoring a bill that would authorize $100 monthly energy rebates for any month this year in which the national average gas price exceeded $4 per gallon.
https://nypost.com/2022/03/23/stimulus-checks-for-high-gas-prices-heres-how-it-could-happen/
 
morekaos said:
...and  current fumbling of this issue has come back to bite us...Brandon had to reverse it and create the mess the free world finds itself in... what about those foreign policy chops, unification calmness and respect?...Can I say "I told you so" yet?

morekaos said:
eyephone said:
You brought up Putin not me. Who controls the gas line from Russia to Europe? Not Biden.
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We had this under control...like the border...and in retrospect..he was right again...

Trump has long wanted to kill a Russia-Germany natural gas pipeline. Navalny?s poisoning could do it for him

Thanks to the Kremlin, U.S. President Donald Trump may soon see one of his dearest wishes come true.

Nord Stream 2, a nearly completed project that would pipe natural gas from Russia under the Baltic Sea to Germany, has thus far withstood major diplomatic assaults from the United States. But now, with the poisoning of Russian opposition leader Alexei Navalny, there is growing pressure on German Chancellor Angela Merkel to kill the $11 billion scheme.

If Merkel does reverse her long-standing support for Nord Stream 2, as she has for the first time hinted she might do, the beneficiary would likely be the U.S.

?Totally controlled by Russia?
Nord Stream 2 represents the expansion of an existing Russia-to-Germany gas system called?you guessed it?Nord Stream. The original system was completed in 2012. Nord Stream 2, running mostly in parallel to the existing Nord Stream system, would double its annual capacity to 110 billion cubic meters.

Construction on Nord Stream 2 began in 2018, after Germany granted planning permission for its end point in the northeastern German town of Lubmin.

It did not take long for Trump to express outrage. ?Germany is totally controlled by Russia,? he declared during a mid-2018 meeting with NATO top brass. The President tied the matter to his often-stated desire for NATO countries other than the U.S. to step up their defense spending. ?So we?re supposed to protect you against Russia, and you pay billions of dollars to Russia, and I think that?s very inappropriate,? he griped.

https://fortune.com/2020/09/08/trump-pipeline-russia-germany-natural-gas-merkel-navalny-poisoned-nord-stream-2/

President Donald Trump signed a bill last week that would sanction companies working on the Nord Stream 2 oil pipeline from Russia to Germany, prompting a Swiss company to immediately walk away from the $10 billion project. Germany and Russia are not happy; Russia promised retaliation. The threat of sanctions shows how much economic power the United States still has.
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Well...waddda yah know?...he was right again!!!....

EU strikes gas deal with the U.S. as it seeks to cut its reliance on Russia

U.S. President Joe Biden and European Commission President Ursula von der Leyen announced the formation of a joint task force to bolster energy security for Ukraine and the EU for next winter and the following one.
The primary goals of the task force, the U.S. and EU said in a joint statement, would be to diversify LNG supplies in alignment with climate objectives and reduce demand for natural gas.
It comes amid heightened concern that energy-importing countries continue to top up President Vladimir Putin?s war chest with oil and gas revenue on a daily basis.
https://www.cnbc.com/2022/03/25/eu-...rce=iosappshare|com.apple.UIKit.activity.Mail
 
morekaos said:
They know it but want to hide the facts...bad optics but the reality is not easy to hide...The Carter years are coming back.  New York is already there.. ;D ;D >:D

White House has quietly met with economists fearing inflation could last YEARS - not months - despite publicly saying it would be a 'temporary bottleneck' after the largest surge in prices in 13 years
Top Biden economic aides met with economist Larry Summers Tuesday
Summers has warned about inflation and inveighed against Biden's American Rescue Plan
Fed Chair Powell testified in Congress this week after the government released figures showing a 5.4 per cent jump in inflation in June compared to a year ago
It was the largest spike in 13 years
Powell said inflation will remain 'elevated'
On Thursday Powell called it a 'big uptick'

https://www.dailymail.co.uk/news/article-9793363/White-House-secretly-indicating-inflation-YEARS.html
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Boy, do I hate being right all the time.... ;D ;D >:D

Consumer prices rose 8.5% in March, slightly hotter than expected and the highest since 1981

Headline CPI in March rose by 8.5% from a year ago, the fastest annual gain since December 1981 and one-tenth of a percentage point above the estimate.
Surging food, energy and shelter costs helped account for the gain.
Real worker earnings fell by another 0.8% during the month as the cost of living outpaced otherwise strong pay gains.
https://www.cnbc.com/2022/04/12/con...t-in-march-slightly-hotter-than-expected.html

At least 5 shot, 8 injured in NYC subway station; manhunt underway for suspect
https://www.cnbc.com/2022/04/12/mul...-undetonated-devices-found-officials-say.html
https://youtu.be/IhOOW8PfEWQ
 
They will be wrong about this too....

White House Expects More Inflation, Not Recession

?Perhaps we will be fortunate and there will be sufficiently rapid adjustments in commodity prices and other bottlenecks that will make that not happen. Perhaps the Fed will be extraordinarily skillful,? Summers said before outlining those options.

?But it's not going to be easy,? he concluded, ?starting from where we are.?
https://www.realclearpolitics.com/a...ects_more_inflation_not_recession_147457.html
 
morekaos said:
They will be wrong about this too....

White House Expects More Inflation, Not Recession

?Perhaps we will be fortunate and there will be sufficiently rapid adjustments in commodity prices and other bottlenecks that will make that not happen. Perhaps the Fed will be extraordinarily skillful,? Summers said before outlining those options.

?But it's not going to be easy,? he concluded, ?starting from where we are.?
https://www.realclearpolitics.com/a...ects_more_inflation_not_recession_147457.html
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It only took two brutal recessions to tamp down 10%+ inflation in the 1980's.  What could possibly go wrong this time?
 
Liar Loan said:
morekaos said:
They will be wrong about this too....

White House Expects More Inflation, Not Recession

?Perhaps we will be fortunate and there will be sufficiently rapid adjustments in commodity prices and other bottlenecks that will make that not happen. Perhaps the Fed will be extraordinarily skillful,? Summers said before outlining those options.

?But it's not going to be easy,? he concluded, ?starting from where we are.?
https://www.realclearpolitics.com/a...ects_more_inflation_not_recession_147457.html
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It only took two brutal recessions to tamp down 10%+ inflation in the 1980's.  What could possibly go wrong this time?
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Denial is certainly not a river in Egypt but it also has proved a losing strategy for Brandon so I am not sure why they are sticking with it...Oh well...
 
Inflation is about to explode?now that this (Nobel prize winning) fool says it won?t?. ;D ;D >:D

Paul Krugman: Inflation is about to come down

The inflation report for March came in hot, as expected: Consumer prices are up 8.5 percent over the past year. But more than two years into the pandemic, we?re still living on COVID time, where things can change very fast ? so fast that official data, even about the recent past, can give a misleading picture of what?s happening now.

In this case, the consumer price index ? which roughly speaking measures average prices over the month ? probably missed a downward turn that began in late March and is accelerating as you read this. Inflation will probably fall significantly over the next few months.
https://www.berkshireeagle.com/opin...cle_e873cfea-ba9f-11ec-b933-9baed88e0d60.html
 
I use to think poorly of krugman, but over the past 15 years, something changed.
It was something simple.

He thought governments should print more money to fight off depression/recession.
We actually did that with QE back in 2010..

Perhaps I live too high in my ivory tower, but the government printing of all that money was a success in my eyes.
Maybe it will now come to bite us...but dam 12 years of prosperity is pretty nice.

So Krugman may actually deserve his NOBEL.


Someone who did poorly in the past 12 years would not be as impressed.
 
zubs said:
I use to think poorly of krugman, but over the past 15 years, something changed.
It was something simple.

He thought governments should print more money to fight off depression/recession.
We actually did that with QE back in 2010..

Perhaps I live too high in my ivory tower, but the government printing of all that money was a success in my eyes.
Maybe it will now come to bite us...but dam 12 years of prosperity is pretty nice.

So Krugman may actually deserve his NOBEL.


Someone who did poorly in the past 12 years would not be as impressed.
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Paul Krugman became a lightning rod for criticism because he openly shills for the Democratic establishment.

This is something that a pure academic rarely does, especially rare for a Nobel prize winner.

And to make it worse, he often goes outside the area of his expertise to make predictions. (His expertise is in International Trade)

He's very wrong on a lot of his predictions.

His famous quote in 1998 - "By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's." is just ridiculously wrong.

In 2013, he was very skeptical of Bitcoin's future of being a real store of money, going as far as calling it "evil"  :eek:

That was when Bitcoin was trading in the $50-$200 range. Today, it's over $40000.

He was repeatedly wrong on housing, predicting the recent home price rise to be "very mild"

And he's wrong on the current inflation problem.

To me, Paul Krugman is a clear example of why hyper partisanship is terrible.
 
So is it really just inflation... or inflated prices to increase profit margins?
https://www.cbsnews.com/news/retail-price-gouging-lowes-amazon-target-accountable-us/

Companies such as CVS Health, Kroger and T.J. Maxx parent company TJX appear to have raised their prices unnecessarily in 2020 and 2021 at a time when Americans were dealing with the economic fallout from the coronavirus pandemic, Accountable.US said in a new report. Instead of keeping prices stable for struggling families, corporations have overcharged Americans and prioritized profit, the group claims.

Accountable.US said it examined the financial statements of the nation's top 10 retailers over the past two years ? including Lowe's and Target ? and found that they collectively increased their profits by $24.6 million for a grand total of $99 billion.The new figures comes as companies enjoy their most profitable year since the 1950s. Pre-tax profits last year soared 25% from 2020, far outpacing the increase in consumer prices.

The report highlights an ongoing debate about the causes of inflation, with some consumer advocates arguing that corporations are using inflation as a justification for passing on even higher price hikes to consumers.
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Now I haven't vetted these numbers (morekaos style) but based on recent price-gouging at the gas pump... it seems like this has some truth to it. I also hear multiple news reports about these wage increases workers are asking for because their companies are making larger profits over the last 2 years.

Even the smaller mom/pop places seem to be upcharging more than their actual cost increase.. but how would I know.

Maybe some business owners here will be transparent and share. :)
 
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