Uncomfortable inflation is here, and it’s changing the economy

Discussion in 'Latest US & World News' started by sec, Oct 19, 2021.

  1. AARguy

    AARguy Well-Known Member

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    I make sure the soles of shoes are made out of flowers to reduce my carbon footprint.
     
  2. AARguy

    AARguy Well-Known Member

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  3. Arleigh

    Arleigh Well-Known Member

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    I see the sarcasm, but I enjoy hiking in the wilderness, with nothing but my guide and myself dotting the terrain. It is glorious to immerse yourself in nature, to breathe the fresh air, to hear the wind blow through the tops of the trees, to see the stream trickle and weave, to see that you are just a tiny speck in the universe. If my efforts directed at reducing my carbon footprint have expanded tenfold from that tiny speck, then all the good to the wilderness.

    it is better for you to sleep in colder temps. It is better to sit outside in the summer and reduce the AC air filling the lungs. I am free to pursue all of the things I partake in, as you are free to engage in sarcasm.
     
  4. AARguy

    AARguy Well-Known Member

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    I respect your feelings on the subject. But mine are quite different. I spent a career in the Army. I have trekked up too many hills and mountains with a ruck and a rifle to ever do it for fun. I have awakened under a foot of snow on the freezing deck of a tank in Germany. I have awakened in the crook of a tree in Panama to escape the raging flood below. I have crawled on my hands and knees in a sandstorm in Iraq. I have also tried to find some shade to collapse in in Iraq as temps neared 140. (Ever try to find shade in a desert?) I have unraveled my underwear to act as a fishing line after smashing a frog to make bait.

    At this point in my life, a Marriott with poolside service is as back to nature as I ever want to get.
     
  5. Arleigh

    Arleigh Well-Known Member

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    Thank you your service. I totally understand your vision of the Marriott life with pool service. But, hey, you are outside not breathing in that AC air.
    My spouse who also served is not quite on board with the sleeping at 65 degrees in the winter. But, with inflation on the rise, who knows, maybe that tune will change faster.
     
  6. AARguy

    AARguy Well-Known Member

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    LOL. After two years in Iraq I simply LOVE air conditioned air! I live on the Caribbean Coast where A/C is a necessity too. In past lives I lived in Norfolk, San Diego, and St Pete (FL) where A/C was an absolute necessity too. Never a problem... always a joy.
     
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  7. Zorro

    Zorro Well-Known Member

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    [​IMG]

    The Liars Were Lying While They Were Shouting "Transitory! and we told you that, then. The progression from the lying propagandists:


    What fresh pile of crap will they serve up for November?

    Meanwhile the grifters rake in the taxpayer dough: University of Michigan pays critical race theory author $20k for single, one-hour Zoom session

    [​IMG]
    Con Artist Peddling Racism To Children For $20k/hour.​
    Americans are in agreement, Joe Biden Sucks.

    Nearly Two-Thirds Rate Joe Biden Negatively on Economy. Don't buy the fake news "deeply divided country" crap.

    "In a stunning development, a majority, 51 percent, now rate His Fraudulency Joe Biden’s handling of the economy as “poor.” Another 13 percent rate it as only “fair.” Nearly two-thirds, a full 64 percent" do not rate "Biden’s economic stewardship" highly.

    Parting Thought:

    [​IMG]
     
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  8. Zorro

    Zorro Well-Known Member

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    Biden was so excited when he immediately signed a bunch of EO and screwed up the Trump Masterpiece.

    Biden on Energy Crisis: Begging Others to Save Him From Himself.
    Let's Go Brandon!
     
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  9. Space_Time

    Space_Time Well-Known Member

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    Okay....
     
    Last edited: Oct 20, 2021
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  10. fmw

    fmw Well-Known Member

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    And yet we had low fuel prices. Inflation is caused by government spending money it doesn't have. That activity creates money out of thin air thereby reducing the value of the existing money. We have inflation because the federal government spent money it didn't have to subsidize personal incomes. That had the additional harm of motivating people not to work. A one two punch.
     
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  11. Hoosier8

    Hoosier8 Well-Known Member Past Donor

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    Plus paying people to stay home raises prices and the new monthly child tax credit payments are now going out. $350 per child. It’s almost as if this is happening by design.
     
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  12. Giftedone

    Giftedone Well-Known Member Past Donor

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    When was the last time you looked around and felt like the paper you held in your hand was funny money - that its value had literally changed overnight (relatively speaking) ? Where you went to the store one day - a chicken was 5 bucks .. the next day it is 9.50. .. but not just for the Chicken .. for most everything

    Sure we feel this over time .. talk about how cheap things used to be way back when .. but when did this happen next to overnight ? Tell me a time when you can remember this kind of inflation.. ??

    I remember back in the early 70s - Those penny candies .. "red hots" - "blue whales" - 5 for a penny. My weekly allowance was 25 cents and for that I could buy half the store. Bag of chips was 5 cents.. The inflation that hit at that time happened really fast .. hence interest rates on mortgage going over 20% .. heard one story of someone losing house .. 26% was interest on mortgage - but it wasn't "Overnight" .. although next thing to it.

    If interest rates on our debt start to spike - like "back in the day" ...perhaps not to 20% -- but even getting back to historical normal of around 6% ... in short ... were fked.

    Current ave interest rate on our debt is around 2% - an obscenely low figure that has nowehere to go but up. On 28 Trillion this is 560 Billion a year in interest payments. .... up from around 400 Billion /year.

    And right there 28 Trillion ... I was thinking around 24 prior to googling .. went to debt clock and didn't believe the number -- went to world-o-meter and was same number.

    This is crazy ... we hit 20 Trillion just at end of Obama's term something like 23 at end of Trump - and barely 1 year later we are at 28...

    Sure we hear about inflation and debt going up -- but it is the rate that matters .. and this is off the charts.

    So imagine if ave interest rate on total debt went to 6% .. use 30 Trillion for simplicity -- and we will be there soon anyway .. like in the blink of an eye .. that is 1.8 Trillion - per year - in interest .. current income is (well - we don't really know cause of Covid) but 3.6 Trillion is a 2018 figure I have in my head . .. and it is not much higher .. so Half our current income .. presumably our income will be higher in futuer if we were to hit that rate .. but it may not be.. nor may not be much higher...

    The point .. is that at 30% of income - alarm bells at the IMF go off - ship is taking on water faster than can be bailed out - if nothing done ship will soon sink. .. roughly the equivalent of 1.2 Trillion on 3.6 Trillion. ... meaning that if rates were 6% now ... our ship would have sunk a long time ago.
     
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  13. Hoosier8

    Hoosier8 Well-Known Member Past Donor

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    This week's Biden admin talking point: Everything sucks right now because we're doing such a great job.
     
  14. AARguy

    AARguy Well-Known Member

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    Biden has no solutions just advice that we should lower our expectations... time to get rid of this bum.
     
  15. Giftedone

    Giftedone Well-Known Member Past Donor

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    This isn't so much about Biden - these things do not crop up overnight - and certainly not going to blame him for Covid - which has definitely exacerbated things .. We have been on this road for a long time.

    There are bigger things for which to blame Biden -- things he is directly responsible for - certainly some which are related to Energy inflation - which is likely not that much a function of covid - as you would expect demand to decrease somewhat - folks not driving to work..

    His "Not in my back Yard - Dump it in the Ocean" Environmental/Economic Policy - Destroy our energy production capacity - and destroy the Ocean and increase CO2 at the same time.. What's not to like.. The Biden-Obama Legacy .. well .. that and thinking that Arming Al Qaeda with sophisticated US military Technology was a good idea... cause they are our new bestest friends and most reliable ally .. arm in arm with Brother El Saud in 2 wars over the last decade.
     
  16. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    In 2021 we are looking at:

    - 5.7% GDP growth
    - 6 million jobs added
    - 20% gain in stock market
    - wage growth 4.5%

    The problems relating to the economy are about retailers not being able to get the product to the customer fast enough, and companies cant find people to hire. Its almost like a dream come true for a politician in power.

    I don't credit this to any politician because this was going to happen after a disaster of 2020, but these kind of numbers are better than any politician can dream of, but I notice two things:

    1. Republicans cry and whine and say "everything sucks"
    2. Biden does not even talk about those numbers

    Republicans have a reputation of being whiners, so their complaints are a given, but a president who won't even try to take credit for positive things is extremely rare. Obama or Trump (especially Trump) would be gushing about it non-stop.

    Biden will exit the stage 2024 (or before), so lets hope there are good conservatives, or moderate Dems in the race to choose from.
     
  17. Pants

    Pants Well-Known Member

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    [​IMG]
    At federal minimum wage, the average American worker would need to log 97-hour weeks for 52 weeks per year to afford a two-bedroom apartment or rental home, according to the report. For the overwhelming majority, not even sharing a dual income with a federal minimum wage-earning partner would cover a two-bedroom rental in their state.
    https://www.huffpost.com/entry/how-...dUzjVtMFQkNZKGcVM-y6VPXp77SP0CHS5KHoFumJOuAFc
     
  18. FreshAir

    FreshAir Well-Known Member Past Donor

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    because demand was down due to pandemic, Trump cutting the supply of cheap foreign oil did not effect us until demand increased
     
  19. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    That is one of the things that creates inflation. We broke a record last year by spending $6.5 Trillion, and the fiscal year ended Sep 30, and they kept spending for 3 more months. Another thing that creates inflation on paper is the comparison point, and when you compare Aug 2021 to Aug 2020, there is a big difference, because lot of sectors of the economy were totally flat in 2020. Biggest reasons right now is the Demand-Pull scenario, where supply cannot satisfy demand, which drives prices up, and wage increases due to labor shortage. These reasons are typical in times of good economy. Increased money supply is also a factor this year.
     
    Last edited: Oct 20, 2021
  20. fmw

    fmw Well-Known Member

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    I agree that we are getting price hikes due to product shortages. Business was actually better last year (I'm on the ecommerce business) but we didn't have the shortages. This year business activity is good but the shortages are wrecking everything. I have no problem getting orders. I have a problem getting product to sell. But in my industry the problem isn't price hikes. It is just the lack of availability.
     
  21. fmw

    fmw Well-Known Member

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    Demand wasn't down last year by my experience. Business was good all around. We were energy independent and Trump wanted to get prices up for business purposes.
     
  22. FreshAir

    FreshAir Well-Known Member Past Donor

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    during the pandemic it was down

    Trump cut the supply of cheap foreign oil last year, the effects of that are now being felt
     
  23. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    Not in ecommerce. As a matter of fact some internet related businesses benefitted from Covid. As for most other sectors, 2020 was a disaster, so to say "business was good all around" is simply not true. It was the worst year in a very long time.

    Heck, negative 3.5% GDP growth and worst job losses since 1939.
     
  24. fmw

    fmw Well-Known Member

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    I do ecommerce.
     
  25. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    When you said "business was good all around" it sounds like you were talking about to the nation as whole, but if you referred to your own situation, then that's cool. I wish I had picked up some Zoom shares because it went from $100 to $600 in 6 months.
     
    Last edited: Oct 20, 2021

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