Inflation

bga1

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Inflation is the left's hidden tax on the middle and lower class. Right now inflation sits at 5% year over year. The last three months around 8% annualized is the pace.

A dual income family making 100k after tax will spend another 8k in the leftists global warming/ global socialism tax.

Worse, the press of government forces to shut down small businesses, will leave less jobs open long terms as the inflationary period runs its course and flattens at new highs and big business robots and outsources its way out of employing people. The secondary effect a few years out will bring us another mortgage crisis as waves of people will be unable to afford the big mortgage they signed up for to get out of leftist run cities.

The left ruins everything- purposefully. They are VERY effective at accomplishing goals. It's just that the goals are not American. Behind the left is the hatred of mankind.
 

Section2

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Inflation is the left's hidden tax on the middle and lower class. Right now inflation sits at 5% year over year. The last three months around 8% annualized is the pace.

A dual income family making 100k after tax will spend another 8k in the leftists global warming/ global socialism tax.

Worse, the press of government forces to shut down small businesses, will leave less jobs open long terms as the inflationary period runs its course and flattens at new highs and big business robots and outsources its way out of employing people. The secondary effect a few years out will bring us another mortgage crisis as waves of people will be unable to afford the big mortgage they signed up for to get out of leftist run cities.

The left ruins everything- purposefully. They are VERY effective at accomplishing goals. It's just that the goals are not American. Behind the left is the hatred of mankind.
The problem of inflation is much bigger than you stated. By far the biggest point: inflation will cause interest rates to rise, which means our borrowing costs rise. US debt at 20T and skyrocketing. A few percent rise in US borrowing costs means a bigger and bigger portion of our budget goes to interest payments. This is a situation that can lead to hyperinflation and financial collapse. It needs to be dealt with immediately.
 

GopherJake

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The problem of inflation is much bigger than you stated. By far the biggest point: inflation will cause interest rates to rise, which means our borrowing costs rise. US debt at 20T and skyrocketing. A few percent rise in US borrowing costs means a bigger and bigger portion of our budget goes to interest payments. This is a situation that can lead to hyperinflation and financial collapse. It needs to be dealt with immediately.
Set a date. Let's hear some specifics. We've been listening to this garbage from you and @CantGetRockHard for 10+ years now.
 

bga1

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The problem of inflation is much bigger than you stated. By far the biggest point: inflation will cause interest rates to rise, which means our borrowing costs rise. US debt at 20T and skyrocketing. A few percent rise in US borrowing costs means a bigger and bigger portion of our budget goes to interest payments. This is a situation that can lead to hyperinflation and financial collapse. It needs to be dealt with immediately.
Oh I know, believe me. In my world of manufacturing pricing has gone up nearly 20% on many raw materials. Of course that is passed on to the customer who then passes it to the consumer. The other shoe is going to drop hard. I only stated the numbers I can prove statistically. It's far worse.

As you say- a 2% increase in interest rates on our debt which is closer to 28 trillion, would be 560 billion per year. Financial collapse indeed. It is actually what the insane left wants. That's why following yesterday the leftists are hungry for several more trillion in spending. A financial collapse is required to achieve globalism and world population decline. Covid was nice for that but not good enough. Financial collapse is much better.

Here's Joe Biden today encouraging more inflation:

Oh isn't it great! He wants us to pay people more and he is forcing the hand with extended rich stimulus and unemployment benefits. So if the people are paid more will they actually have more?
Nope. Inflation will take every last cent of it and more. As they are paid more for menial jobs, they will pay more in basic products and services- gas up double in the past year, for example. It is so cynical. They understand exactly what they are doing. They couldn't accomplish federal minimum wage so they forced it with stimulus.
 

bga1

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Set a date. Let's hear some specifics. We've been listening to this garbage from you and @CantGetRockHard for 10+ years now.
Is there inflation? Is it harmful? What is causing it? Be a part of the conversation rather than being who you normally are.
 


GopherJake

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Is there inflation? Is it harmful? What is causing it? Be a part of the conversation rather than being who you normally are.
I am part of the conversation. I asked @Section2 to back up his dire predictions with dates - which he and @CantGetRockHard have never been willing to do, to accompany.

My belief is that the inflationary pressures we see now are temporary and will decline, as long as Covid wanes. Supply chains were severely disrupted and will be restored. Small business was negatively affected, but that presents opportunity for new players and restored small business. That sector will rebound. The service industry is booming. Travel is booming. The corrections will take a little while. I don't know where we stand with unemployment extensions or what not, but those all need to end. We are on track for an excellent 2nd half of the calendar year.

Get vaccinated everyone, if you haven't already. Don't be stupid. Help us recover.
 

bga1

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I am part of the conversation. I asked @Section2 to back up his dire predictions with dates - which he and @CantGetRockHard have never been willing to do, to accompany.

My belief is that the inflationary pressures we see now are temporary and will decline, as long as Covid wanes. Supply chains were severely disrupted and will be restored. Small business was negatively affected, but that presents opportunity for new players and restored small business. That sector will rebound. The service industry is booming. Travel is booming. The corrections will take a little while. I don't know where we stand with unemployment extensions or what not, but those all need to end. We are on track for an excellent 2nd half of the calendar year.

Get vaccinated everyone, if you haven't already. Don't be stupid. Help us recover.
Excellent!

Do not get vaccinated if you were previously infected or are young. To do so would be foolish- per science. There is no record of anyone previously infected dying of covid. None. Almost no child died directly as a result of Covid. The recent Cleveland Clinic study concluded that natural immunity is at least as durable if not much more durable than the vaccines (study of over 50,000).

I agree that much of the inflation will subside unless stimulus keeps pumping. This could end in a few ways:

Most likely: Recession. Housing prices sag and new housing starts end. Mortgages go upside down and people abandon over priced houses.

Possible: Continued stimulus through 2022 for political purposes. Rampant short term inflation and the loss of the ability of the Fed to stop it. Remember- much of this inflation is policy induced. Fuel and energy are policy induced. Wage increases are caused by policy.

I hope we recover. We will not under these policies.
 

Section2

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Set a date. Let's hear some specifics. We've been listening to this garbage from you and @CantGetRockHard for 10+ years now.
It’s not science or math, so I can’t give you a prediction. A lot of it is psychological. If people anticipate inflation, they change their behavior and it becomes self fulfilling. But right now you have tremendous stimulus coupled with a reduction in output. More dollars chasing fewer goods. Result is inflation which we are seeing.

Because the debt has more than doubled since the last inflationary event a decade ago, the consequences will be worse.
 

Gopher_In_NYC

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Inflation is the left's hidden tax on the middle and lower class. Right now inflation sits at 5% year over year. The last three months around 8% annualized is the pace.

A dual income family making 100k after tax will spend another 8k in the leftists global warming/ global socialism tax.

Worse, the press of government forces to shut down small businesses, will leave less jobs open long terms as the inflationary period runs its course and flattens at new highs and big business robots and outsources its way out of employing people. The secondary effect a few years out will bring us another mortgage crisis as waves of people will be unable to afford the big mortgage they signed up for to get out of leftist run cities.

The left ruins everything- purposefully. They are VERY effective at accomplishing goals. It's just that the goals are not American. Behind the left is the hatred of mankind.
Make sure to leave your nightlight on...

He's under the bed, no, he's in the closet, no he's in the WC, no he's AOC,

We're truly screwed as he's everywhere!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

YIKES



1624564088852.png
 



Gopher_In_NYC

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It’s not science or math, so I can’t give you a prediction. A lot of it is psychological. If people anticipate inflation, they change their behavior and it becomes self fulfilling. But right now you have tremendous stimulus coupled with a reduction in output. More dollars chasing fewer goods. Result is inflation which we are seeing.

Because the debt has more than doubled since the last inflationary event a decade ago, the consequences will be worse.
Weak answer, methinks, for a $400/hour "economist" LMAO
 

Nokomis

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Hahaha... Didn't we just have a thread titled Inflation? Were you afraid your digs at the left would go unnoticed in Wally's one page thread?
 

GopherJake

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It’s not science or math, so I can’t give you a prediction. A lot of it is psychological. If people anticipate inflation, they change their behavior and it becomes self fulfilling. But right now you have tremendous stimulus coupled with a reduction in output. More dollars chasing fewer goods. Result is inflation which we are seeing.

Because the debt has more than doubled since the last inflationary event a decade ago, the consequences will be worse.
So, @bga1, this the normal @Section2 cop-out. It's really easy to be right if the timeline is infinite.
 

Nokomis

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The problem of inflation is much bigger than you stated. By far the biggest point: inflation will cause interest rates to rise, which means our borrowing costs rise. US debt at 20T and skyrocketing. A few percent rise in US borrowing costs means a bigger and bigger portion of our budget goes to interest payments. This is a situation that can lead to hyperinflation and financial collapse. It needs to be dealt with immediately.
Do we pay interest on intra-governmental debt? Honest question.
 



GopherJake

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Do we pay interest on intra-governmental debt? Honest question.
My understanding is that it is all on paper, but I'm willing to be corrected. If it is, it will never be repaid, so it's merely symbolic.
 


Nokomis

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The problem of inflation is much bigger than you stated. By far the biggest point: inflation will cause interest rates to rise, which means our borrowing costs rise. US debt at 20T and skyrocketing. A few percent rise in US borrowing costs means a bigger and bigger portion of our budget goes to interest payments. This is a situation that can lead to hyperinflation and financial collapse. It needs to be dealt with immediately.
I guess I had you pegged as someone who thinks higher interest rates would be a good thing.
 

bga1

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I guess I had you pegged as someone who thinks higher interest rates would be a good thing.
They can be a good thing. S2 rails (correctly) against Fed manipulation of rates. He will have a better answer but moderate to high interest rates were fine when the federal government owed little money. They will be financially apocalyptic if they go high now. We have paid 484 billion in interest this year so far with debt now at 28 trillion. Let's say the rate of interest on our debt goes to 6% and our national debt is 35 trillion. We would be looking at over 2 trillion in debt payments per year. For perspective- taxes bring in around 3 trillion including FICA. Disaster.
 

bga1

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Make sure to leave your nightlight on...

He's under the bed, no, he's in the closet, no he's in the WC, no he's AOC,

We're truly screwed as he's everywhere!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

YIKES



View attachment 13157
That is your picture of QAnon I believe. They are everywhere!
 


KillerGopherFan

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Oh I know, believe me. In my world of manufacturing pricing has gone up nearly 20% on many raw materials. Of course that is passed on to the customer who then passes it to the consumer. The other shoe is going to drop hard. I only stated the numbers I can prove statistically. It's far worse.

As you say- a 2% increase in interest rates on our debt which is closer to 28 trillion, would be 560 billion per year. Financial collapse indeed. It is actually what the insane left wants. That's why following yesterday the leftists are hungry for several more trillion in spending. A financial collapse is required to achieve globalism and world population decline. Covid was nice for that but not good enough. Financial collapse is much better.

Here's Joe Biden today encouraging more inflation:

Oh isn't it great! He wants us to pay people more and he is forcing the hand with extended rich stimulus and unemployment benefits. So if the people are paid more will they actually have more?
Nope. Inflation will take every last cent of it and more. As they are paid more for menial jobs, they will pay more in basic products and services- gas up double in the past year, for example. It is so cynical. They understand exactly what they are doing. They couldn't accomplish federal minimum wage so they forced it with stimulus.
Oh good. Creepy Joe is back. Geezus.
 

Section2

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So, @bga1, this the normal @Section2 cop-out. It's really easy to be right if the timeline is infinite.
There are too many variables to be able to make a prediction. It’s not a cop out, it’s reality.

the prediction is that when interest rates normalize, and they must, we will have a giant problem on our hands. Zero interest rates are a disastrous policy with no good way out. Now we are having some inflation, will the Fed be able to raise rates?

your questions come from a place of denial, which is understandable. No one wants to contemplate these things.
 

Spoofin

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Sticking your head in the sand on the inflation topic helps no one. Joe continues to dodge it with ignorant comments like what he stated above. Prices on everything in the manufacturing sector from raw material to labor have risen substantially. Most companies have already issued price increases and the only way people are getting new employees is to raise wages above the market cost for those jobs (hourly pay up over 6% in the last year). The #1 reason for this is the extra unemployment money the government is handing out. I was talking about this on here in March and was called a "crackpot" and that the problem was there weren't enough open jobs. LOL.

Step 1 - Take away the extra unemployment money today.
Step 2 - Stop giving out more handouts. "I got them $1.9 Trillion in relief" is the problem Joe - not part of the solution.

We need to get people back to working for an income. According to the economists I talk with (pay for services with) - the labor force participation rate (those working or seeking employment) for those 16+ is at its lowest level since in over 40-years. While there are about 9.3 million people counted in the unemployment number, it is closer to 15 million poeple getting unemployment benefits right now. The difference - the removal of the job seeking requirement (if not seeking, you are not counted as unemployed). What do I know - I'm a crackpot.
 

Section2

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I guess I had you pegged as someone who thinks higher interest rates would be a good thing.
Market rates of interest would be a good thing, which would definitely be much higher. Interest rates balance saving with investment. That function has been destroyed by the Fed. We haven’t sniffed a consequence yet, but the financial crisis was a warning. Our economy is a house of cards.
 

GopherJake

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There are too many variables to be able to make a prediction. It’s not a cop out, it’s reality.

the prediction is that when interest rates normalize, and they must, we will have a giant problem on our hands. Zero interest rates are a disastrous policy with no good way out. Now we are having some inflation, will the Fed be able to raise rates?

your questions come from a place of denial, which is understandable. No one wants to contemplate these things.
Cop-out. "There are too many variables to be able to make a prediction." immediately followed by a nebulous prediction "the prediction is that when interest rates normalize, and they must, we will have a giant problem on our hands."

I bet if we do nothing other than end extended unemployment - and Covid subsides - that by this time next year, inflation will be substantially reduced.

Your turn.
 

Section2

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Question for Progs: do you really in your heart of hearts, think that the federal government can print trillions of dollars, buy trillions of dollars worth of mortgages and corporate securities, and that this will have no impact? That’s what you are arguing.
 

Nokomis

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They can be a good thing. S2 rails (correctly) against Fed manipulation of rates. He will have a better answer but moderate to high interest rates were fine when the federal government owed little money. They will be financially apocalyptic if they go high now. We have paid 484 billion in interest this year so far with debt now at 28 trillion. Let's say the rate of interest on our debt goes to 6% and our national debt is 35 trillion. We would be looking at over 2 trillion in debt payments per year. For perspective- taxes bring in around 3 trillion including FICA. Disaster.
Heh... You're so transparent, bga. Anything done under a D President: bad. Exact same thing under an R President: good.
 

Nokomis

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Market rates of interest would be a good thing, which would definitely be much higher. Interest rates balance saving with investment. That function has been destroyed by the Fed. We haven’t sniffed a consequence yet, but the financial crisis was a warning. Our economy is a house of cards.
Maybe. But those cards are like cardstock cards.
 

GopherJake

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Question for Progs: do you really in your heart of hearts, think that the federal government can print trillions of dollars, buy trillions of dollars worth of mortgages and corporate securities, and that this will have no impact? That’s what you are arguing.
I'm not sure. I'm definitely not an expert. Of course, as everyone here except you knows, neither are you. By your own admission just above, you cop-out with "too many variables."

What I do know is that the US economy is perhaps unique in its power and it's not entirely clear to me that our debt has reached some sort of no-way-back-milestone. It sure *seems* bad, doesn't it. But where's the proof? 2008 was horrific. And we came roaring back. This past year was brutal, but large parts of the economy weren't affected or even thrived. The economy is poised for full rebound right now. Printing money sounds bad, doesn't it. But what is the real impact? A *slight* decline in the value of the world's de-facto currency? And the positive impact perhaps/maybe/probably outpaces the pressure to decline, so the net is positive. Not sure.

But what I do know, is your non-prediction predictions are like proving a negative - it can't be done, because they are bound by no time constraints. I can't prove you wrong, because tomorrow you might be right. That's what people in weak positions do.
 

bga1

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Heh... You're so transparent, bga. Anything done under a D President: bad. Exact same thing under an R President: good.
BS - I said under Trump that his one major political error was too much spending. Period. That's a 100% projection post by you - as you are the person that thinks R and D = bad/good. I used to think more that way, then I came to the realization that most politicians get sucked into DC and become corrupt. Period. Today, I am ticked at McConnell as I almost always am these days because he is a corrupt DC insider. He could have stopped this trillion dollar spendathon. Who was there to help the Dems? Romney. Murkowski. Collins. A lot of Rs really, really suck. Now let's see you tell me who you think is corrupt on the D side. I will add Burr to my R list and Thune. There are others not far behind.

The left? Evil. Pure evil. The left is driven by hatred for mankind and for our country. Most Dems are not like that, but most Dems are scared of the left. So here we are with an doddering dementia patient being stood up by the far left in a long running political version of weekend at Bernies and suddenly almost all of Joe's life long political positions are long gone and replaced by those of AOC, the Squad and Bernie Sanders.
 
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Nokomis

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Question for Progs: do you really in your heart of hearts, think that the federal government can print trillions of dollars, buy trillions of dollars worth of mortgages and corporate securities, and that this will have no impact? That’s what you are arguing.
Well, personally, I find it all kind of arbitrary. With debt basically free, of course prices will go up. If rates went up and we hit a recession, I honestly see it as a wash. People who manage their money well should be ok. Those that don't; well, they'll probably get into trouble either way. You call it a house of cards; I see it more as hocus-pocus nonsense (that actually works pretty well).
 




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