Why inflation can actually be good for everyday Americans and bad for rich people

LOL...What you are tired of is having your proverbial a$% handed to you by virtue of having your old posts 100% show you as being dishonest thus removing your mask and exposing you for who you really are as opposed to whom you claim to be.

You would have gotten away with your deception if not for the darned search function!

On the bright side, maybe there is someone that hasn't read the entire exchange and they might, just might, still believe this last bit of deception that you are attempting.

Hope springs eternal.

 

LOL. It must suck being you. I have never seen such grand display of projection.

 

Resorting to an ad hom fallacy only reveals ones inability to defend a position on merit. I used your example and you could not describe how the person is better off.

Now we are moving the goal post to borrowers? Okay. Who is the biggest borrower of all? Government. Yes the government and tax man benefit. I already said that.

 

Sure. Vote Democrat, because Biden's a genius!



Biden had a negative first half and the current quarter rounds to zero, cuz, he's a genius!

The Atlanta Fednow tracker for GDP projection has reduced its forecast for the third quarter to almost zero — 0.3%.

Inflation is too many dollars chasing too few goods and services. 'Biden pumped a trillion plus dollars of excess dollar bills into the economy. And then, just a month ago, he pumped in another $740 billion.' If all these additional dollars were paid for with an equal amount of goods and services, this additional money would not be inflationary, but, NONE OF OF WAS. It's all hot money. Biden's 'solution' to a bonfire of inflation? Gasoline while he finger points, and blame fixes.

I welcome the women's vote.

“The Dow Jones Industrial Average slid 522.45 points, or 1.7%, to close at 30,183.78. The S&P 500 shed 1.71% to 3,789.93, and the Nasdaq Composite slumped 1.79% to 11,220.19. The S&P ended Wednesday’s session down more than 10% in the past month and 21% off its 52-week high. Even before the rate decision, stocks were pricing in an aggressive tightening campaign by the Fed that could tip the economy into a recession.”

Retirement savings and net worth being devastated.

 

Actually I explained it using simple terms and an example. If you don't agree with it, then so be it, but its lame & dishonest to claim if was not explained. Mortgages become more affordable with inflation. Its a fact, but feel free to disagree.

It has been about borrowers from post 1. Are you kidding me?

It seems you did not understand what Fixed Rate Mortgage was, and now you are confused who the Borrower is in a mortgage. Have you ever taken a mortgage?

 

In bold, you have no choice but it's gonna hurt, bad. You are still unable, hence the running, are unable to explain how Joe is responsible for world wide inflation and supply chain issues originating under the Trump regime?

 

You have been unable to demonstrate that claim mathematically. I admire you for searching for a positive side and for admitting to your mathematical error when I brought up taxes. You amended your figure for taxes, but neglected to factor in the higher cost of living that eats up what is left. SALT takes the rest, plus a little more, leaving the person in your example worse off.

We left our worker with $330/$360. How much do you believe is left after factoring in the higher cost of living?

 

There is no error, and you didn't bring up taxes, because I mentioned them in my example.

If you don't agree, then DON'T. Who gives a rip? What I am saying just happens to be a well known fact, but your agreement is not required, or not requested for.

All you ever do it complain, so of course you also complain about increase in income.

 

As an upper middle class person I can tell you with certainty that you are wrong here.

My wealth has grown because I have money right now to buy **** directly. Take property for example. While poor people are pinched out of buying property and forced into perpetual rental market, I've managed to buy yet another rental property to add to my collection. When gas spiked I was able to trade in our SUV and buy an EV on a dime to insure that the price of gas will not effect the household. Poor people do not have that flexibility.

The EV costs me **** all to run as well because again, we have a garage and can trickle charge it over night. A poor person is likely in an apartment somewhere where that isn't even an option.

I can go on and on and on about how I've managed to use our current situation to both protect and expand our wealth on just a surface level.

 

This is not about me and you have not been able to mathematically demonstrate an increase in income. It is basic math.

We left our worker with $330/$360. How much do you believe is left after factoring in the higher cost of living?

 

You can cyber-thump your chest all day, but it seems you missed the point.

The silver lining in inflation is for those who already had a mortgage before inflation became an issue. It does not help the poor who are stuck renting, - it makes it worse for them.

How about you just disagree with the consensus, and move on? I told you, - I am not seeking to convince you of anything you don't want to believe. If you don't think $360 extra per month helps you in any way, then so be it.

 

Well that's the thing. Fixed mortgage rates are great until they expire and you now find yourself having to reup a substantially higher interest rate, making your mortgage payments unreachable and thus now you have to sell your home. The longer this goes on, the more middle to low income families who still have mortgages and who's terms expire are going to be pinched out of the home owning buisness.



Our home is completely paid off so we are protected once again from any of this. Because wealthy. After all this is said and done you are going to see the middle and lower class pinched out even further into perpetual renter land while those of us who have enough wealth to have protected ourselves will expand our wealth and power.

 

If your income hasn't changed, and your mortgage payment hasn't changed, but all other cost (food, clothing, utilities, taxes) have ALL gone up, then how can inflation be 'good' for any person?

The only 'winners' are the taxman and the government. Taxman wins with higher prices, higher sales taxes. The government wins because they can continue to spend-spend-spend, because it's not their wallet. Need more programs, yup, the taxpayers still have more then a dime not dedicated to surviving.

Inflation, in no way shape or form, is a benefit to the people of a society.

 

It's not wrong, but addressing different points than you are, talking about wages, debts and bonds. The points you've raised, which are all certainly valid, don't address these things.

 

Merely reflects how damaging our current inflation really is, especially to those who are middle to lower income.

 

Powell just told Americans he is intentionally going to cause a recession, higher unemployment, lower home values, a lower stock market, basically less wealth. Then he said he didn't know how many more rate increases it will take to tame inflation or how much pain he will have to inflict. In part because he made the mistake of leaving rates too low too long.

 

The food situation has to be the worst. It's crazy how high diesel is now even relative to gasoline, and that is driving so many other prices up.

 

To your point, I ordered 10 yards of material for a project out of Southern California to Wyoming, the material was $115 and the shipping was $78 UPS! You can imagine the final cost to my customer after my labor!

 

I am pretty sure that conservatives have been saying that when you increase the price of oil...you increase the costs of all goods that are transported by oil or manufactured with oil. which is everything.

We also suggested that this would be the likely outcome when we decided to go full stupid and shut down the global economy over a virus thinking we could prevent a virus from doing what a virus does.

So...this is basically going full stupid on both CO2 emissions and shutting down the global economy. But that's not what's going to be blamed. What's going to be blamed is Putin in Russia and while that does have an effect it's not the entire reason as to how we got here.

When renewables can get to the point to replace oil...sure. But it's not there yet. Shutting downdown nuclear reactors wasn't a smart either if the goal is clean energy.

So we have a rough 2023 to look forward too. And an increasing lower class. I hope lessons were learned the next time a virus with a 99.9 percent survival rate rolls into town.

 

In that situation it would not be good. The 'silver lining' is a situation where income HAS increased, while existing mortgage payment remains same.

This is why I said inflation is bad in pretty much every sense, except for that one scenario.

 

It doesn't take inflation to have one's salary increase. Most fixed rate mortgages are either 15 or 30 years. If your income hasn't increased in either one of those time spans, you need a new career lol.

My Dad's mortgage was $60 a month . By the time it was paid off 30 years from start (1954) to finish (1984), he was making a wee bit more then when it started.

 

True, but during times of high inflation, wages increase at a faster pace. Your comment tends to prove my point, because even with moderate inflation / wage increase your mortgage becomes more manageable when you are 15 years into paying it. I mentioned that already. At that point people usually sell the house, pay off the mortgage, and buy a bigger house and take a bigger mortgage. Its the same thing in slow motion.

Yes. It proves my point.

 

Shutting down to save lives during the pandemic was really a bipartisan and non-partisan issue. Everyone supported it, at least initially, and most of the world was doing the same thing. Saving lives is not a stupid thing to do. It was the best thing to do with no vaccines yet available.

And of course there are no CO2-related government policies that can be blamed for the present situation. I agree that Putin's war is not the entire reason for the present situation -- after all, it started before his invasion did. The real reasons are global and really very complex, and unfortunately not entirely under the control of our government. Some problems can't be solved by voting for your favorite political party. Some problems take time to solve or work themselves out, and all the government can do is try to mitigate the effects. So really, when it comes to politics, we have to ask ourselves what, if anything, government can and should do to help blunt the impact.

It would be nice to have a "strategic reserve" of refined diesel at a time like this.

 

And you miss the step where as wages rise, so do prices. the extra costs of 'everything else' costing more usually more than offsets the 'savings' of a fixed payment for shelter.

Or, as we did, pay off the mortgage 20 years early and save a butt-load on interest.....

 

Yes we all agreed but once the data came out we should have reopened. The cost versus lives saved wasn't worth it. As we are going to greatly suffer now. Costing lives increasing poverty and crime despair...all of it.

Trump was the only one saying "we gotta reopen". In.a sea of angry progressives who wrongly thought they were saving us from ourselves by being authoritarian with their stupid mandates. Keeping the economy shut down for far too long