Author Topic: Stagflation  (Read 3405 times)

Offline AKIron

  • Plutonium Member
  • *******
  • Posts: 12738
Re: Stagflation
« Reply #30 on: April 28, 2024, 10:13:32 AM »
The Soviets provided housing for everyone early on. Most lived in apartments shared with other families. This is not what our youth envision today. They imagine the same standard of living when they lived at home and enough free time to socialize however and as often as they like. In the Soviet Union everyone worked. It was illegal not to. Not everyone liked their job.
Here we put salt on Margaritas, not sidewalks.

Offline Animl-AW

  • Gold Member
  • *****
  • Posts: 3117
      • Aces High Tech Hangar
Re: Stagflation
« Reply #31 on: April 28, 2024, 10:20:35 AM »
Denmark rated as happiest country in the world.

Offline Eagler

  • Plutonium Member
  • *******
  • Posts: 18173
Re: Stagflation
« Reply #32 on: April 28, 2024, 10:35:06 AM »
And raising interest rates has been about the only weapon that has worked in the past to somewhat control everyone's spending for a time but with the government now over $34 trillion in debt and climbing by a trillion at record speed, high rates are a bad thing...

It's not the high rates but the uncontrollable and unsustainable printing and spending of dollars out of thin air...

High rates should mean lower prices..

Very glad we are the best turd in the toilet at the moment which keeps the dollar as top dog...

As soon as that changes America is over as civil unrest takes over in a blink of an eye..

... removing the 10 sec of politics in that clip the rest is common sense..

Eagler
« Last Edit: April 28, 2024, 10:41:48 AM by Eagler »
"Masters of the Air" Scenario - JG27


Intel Core i7-13700KF | GIGABYTE Z790 AORUS Elite AX | 64GB G.Skill DDR5 | 16GB GIGABYTE RTX 4070 Ti Super | 850 watt ps | pimax Crystal Light | Warthog stick | TM1600 throttle | VKB Mk.V Rudder

Offline Captain Virgil Hilts

  • Platinum Member
  • ******
  • Posts: 6128
Re: Stagflation
« Reply #33 on: April 28, 2024, 11:04:17 AM »
One thing driving the prices in Idaho, particularly the Treasure Valley where we were, is people from California with cash. So long as they can sell their California home then interest rates are not an issue when they can buy another cheaper one for cash in Idaho. Prices in Idaho are still nearly twice what they are here on the fringes of the Metroplex.


The exodus from the most expensive states with the highest tax burdens is absolutely causing the high house costs in other states. Moving from CA to TN will allow you to more than double your house size while still spending less than 70% of what your CA house sold for.
"I haven't seen Berlin yet, from the ground or the air, and I plan on doing both, BEFORE the war is over."

SaVaGe


Offline Captain Virgil Hilts

  • Platinum Member
  • ******
  • Posts: 6128
Re: Stagflation
« Reply #34 on: April 28, 2024, 11:15:48 AM »
A nice overall crash on just about everything is needed and is what the fed was trying to do but with government passing bills to spend billions on wars and illegal immigrants, that market correction has never been allowed to happen.

No one has the stomach to allow the pain needed for a healthier financial future these days...too busy selling the country out for their next election victory....

Term limits would do wonders imo but the dc ghouls will never vote that on themselves...country is toast imo...just look at the two clowns we have to choose from in 7 months..lol

Eagler


Even after a crash, the inflation driven price never return to their pre-inflation levels. There's just a mass number of bankruptcies and high levels of unemployment.


You're never going to bring prices back down substantially. Some commodities will drop. You can bring energy costs back down.

What can be done with a massive reduction in government spending, and in regulation, is a significant reduction in the rate of inflation, and an increase in wage growth.

Of course, those moves are going to be extremely difficult. Slashing entitlement spending will unleash cries of agony. But it requires a massive slashing. Then when you reverse the green stupidity, there will be more screams of agony.


People are ignoring other things the government is doing. For example, the forced production of electric vehicles has a huge cost. Ford posted a massive loss, that calculates to $130,000 lost on every electric vehicle produced and sold. The rest of the industry is in the same place. They're making up some of the difference elsewhere. That's driving other prices.
"I haven't seen Berlin yet, from the ground or the air, and I plan on doing both, BEFORE the war is over."

SaVaGe


Offline Eagler

  • Plutonium Member
  • *******
  • Posts: 18173
Re: Stagflation
« Reply #35 on: April 28, 2024, 11:46:24 AM »
Agree 100 % Savage

Prices will not go back to 2020 prices regardless who runs the dc show...but to slow the increase higher rates are needed

It's the only arrow left in the quiver and they need the higher rates to have that as a recovery tool so when there is a real financial need to lower them not just to keep a bloated marketing chugging higher...

Eagler
"Masters of the Air" Scenario - JG27


Intel Core i7-13700KF | GIGABYTE Z790 AORUS Elite AX | 64GB G.Skill DDR5 | 16GB GIGABYTE RTX 4070 Ti Super | 850 watt ps | pimax Crystal Light | Warthog stick | TM1600 throttle | VKB Mk.V Rudder

Offline Captain Virgil Hilts

  • Platinum Member
  • ******
  • Posts: 6128
Re: Stagflation
« Reply #36 on: April 28, 2024, 12:10:28 PM »
Agree 100 % Savage

Prices will not go back to 2020 prices regardless who runs the dc show...but to slow the increase higher rates are needed

It's the only arrow left in the quiver and they need the higher rates to have that as a recovery tool so when there is a real financial need to lower them not just to keep a bloated marketing chugging higher...

Eagler

They've driven the interest rates to exceed 7% for prime business. It has not resolved the problem. The GDP just failed to meet target, and inflation is accelerating again. The proposed tax increases will now cause wages to fall even further behind. The increased interest rates have not had a real effect on inflation, they've long since passed the point of diminishing returns on any effect they might have ever had.

You're now killing the ability of the younger generation to own a home and begin to build wealth. They'll soon become disinterested in doing anything to improve their situation, because they see no way forward. They can't save money, prices are too high. They can't build wealth, their wages are falling behind. They can't own a home, they can't afford the payments at 7%+ interest rates. You're literally driving it to the point of no return.

You cannot "save" the economy by making a bigger train wreck of it. The interest rate is an artificial factor driven purely by government interference in the economy. Government interference in the economy has been a detrimental factor, especially when the economy is in crisis.
"I haven't seen Berlin yet, from the ground or the air, and I plan on doing both, BEFORE the war is over."

SaVaGe


Offline Animl-AW

  • Gold Member
  • *****
  • Posts: 3117
      • Aces High Tech Hangar
Re: Stagflation
« Reply #37 on: April 28, 2024, 12:19:53 PM »
They've driven the interest rates to exceed 7% for prime business. It has not resolved the problem. The GDP just failed to meet target, and inflation is accelerating again. The proposed tax increases will now cause wages to fall even further behind. The increased interest rates have not had a real effect on inflation, they've long since passed the point of diminishing returns on any effect they might have ever had.

You're now killing the ability of the younger generation to own a home and begin to build wealth. They'll soon become disinterested in doing anything to improve their situation, because they see no way forward. They can't save money, prices are too high. They can't build wealth, their wages are falling behind. They can't own a home, they can't afford the payments at 7%+ interest rates. You're literally driving it to the point of no return.

You cannot "save" the economy by making a bigger train wreck of it. The interest rate is an artificial factor driven purely by government interference in the economy. Government interference in the economy has been a detrimental factor, especially when the economy is in crisis.

Sorry, but the top paragraph is not true, many charts show this.

Again, sorry, but some in this thread do not understand economy, they are guessing their way through it with a twist of political bias.

Some are far off the mark. Its just truth, no offense intended


Offline Captain Virgil Hilts

  • Platinum Member
  • ******
  • Posts: 6128
Re: Stagflation
« Reply #38 on: April 28, 2024, 01:37:42 PM »
Sorry, but the top paragraph is not true, many charts show this.

Again, sorry, but some in this thread do not understand economy, they are guessing their way through it with a twist of political bias.

Some are far off the mark. Its just truth, no offense intended


The top paragraph is absolute FACT. The prime interest rate is over 7%. The GDP missed the target as of the most recent report, it fell short by at least 20%. The inflation rate increased, by about 40% over their projections. It did so for the 3rd month in a row. It increased so much that despite political pressure, the Fed postponed even consideration of an interest rate decrease until September. Nothing about the economy meets their bogus projections, nor claims that it is strong, or moving in the correct direction.

Dispute those facts. They're published as of 4/26/24. The facts do not care about your politics, even your leftist bent.

As a student of Milton Friedman, Thomas Sowell, (both Nobel winning economists) and Arthur Laffer, among others, I have a rock solid grasp on economics.


When the economy is actually doing well, you do not have to lie to the public. Their wallet, their refrigerator, and their bank accounts tell them.

You've brought nothing to the discussion. At all.
"I haven't seen Berlin yet, from the ground or the air, and I plan on doing both, BEFORE the war is over."

SaVaGe


Offline LCADolby

  • Platinum Member
  • ******
  • Posts: 7306
Re: Stagflation
« Reply #39 on: April 28, 2024, 02:17:50 PM »

It's not the high rates but the uncontrollable and unsustainable printing and spending of dollars out of thin air...


 :aok
JG5 "Eismeer"
YouTube+Twitch - 20Dolby10


"BE a man and shoot me in the back" - pez

Offline Chris79

  • Silver Member
  • ****
  • Posts: 1121
Re: Stagflation
« Reply #40 on: April 28, 2024, 05:10:10 PM »
Government spending has little, or no, effect on inflation, consumers do, exceeding supply. Interest rates forces you to stop buying so much. Why consumers? Because they have more money to spend. Inflation or recession. Take your pick. You think spending will slow without interest rates forcing it?

Don’t over complicate it.

Same ppl didn’t mind 8 trillion on Iraq based on admitted lies of WMDs

That was quite possibly the most asinine statement I’ve had the distinct displeasure to read in a while. Were you not paying attention the last several years, especially to the knee jerk idiocy conjured up by the fed during Covid. 4-7 Trillion dollars were injected into the economy 2020-2021 damn near doubling the supply.
To break it down Barney style.
In2019there were 100$ and 100 apples.
In 2024 there now exists 200$ and 100 apples.
Is it shocking that the price per apple went from 1$ to 2$?


Chuikov

Offline Animl-AW

  • Gold Member
  • *****
  • Posts: 3117
      • Aces High Tech Hangar
Re: Stagflation
« Reply #41 on: April 28, 2024, 05:22:39 PM »
That was quite possibly the most asinine statement I’ve had the distinct displeasure to read in a while. Were you not paying attention the last several years, especially to the knee jerk idiocy conjured up by the fed during Covid. 4-7 Trillion dollars were injected into the economy 2020-2021 damn near doubling the supply.
To break it down Barney style.
In2019there were 100$ and 100 apples.
In 2024 there now exists 200$ and 100 apples.
Is it shocking that the price per apple went from 1$ to 2$?

You don’t like it because you don’t know what you’re talking about. You talk, not listen, not learn.

If you want to blame any admin fine, lets go there.
High prices and harsh inflation started under that last president, starting with the loss of 20 million jobs, many of those drive the supply chain.

Supply and demand.
Learn it, love it, live it. Period.

People have more money to spend and they do so, exceeding demand. Interest rates are design to tamp down spending to within the supply window.

Want prices to go down? Stop extra spending. More people are taking vacations thsn ever before, you have more money to do so.

Wages are up, unemployment diw, too much spending.

Political talking point balloon popped.
« Last Edit: April 28, 2024, 05:32:36 PM by Animl-AW »

Offline AKIron

  • Plutonium Member
  • *******
  • Posts: 12738
Re: Stagflation
« Reply #42 on: April 28, 2024, 05:29:21 PM »
Covid came here in late 2019. We overreacted, yugely. We're paying for that now. Anyone who thought there would be no piper to pay shouldn't be allowed to vote.
Here we put salt on Margaritas, not sidewalks.

Offline Animl-AW

  • Gold Member
  • *****
  • Posts: 3117
      • Aces High Tech Hangar
Re: Stagflation
« Reply #43 on: April 28, 2024, 05:35:07 PM »
Covid came here in late 2019. We overreacted, yugely. We're paying for that now. Anyone who thought there would be no piper to pay shouldn't be allowed to vote.

Yep.
Good example, people ran out and bought 100 rolls of toilet paper, none left, price triples.
Supply and demand.

Plus big companies mixing gouging with inflation to cover it up
« Last Edit: April 28, 2024, 05:36:49 PM by Animl-AW »

Offline Chris79

  • Silver Member
  • ****
  • Posts: 1121
Re: Stagflation
« Reply #44 on: April 28, 2024, 05:40:31 PM »
You don’t like it because you don’t know what you’re talking about. You talk, not listen, not learn.

If you want to blame any admin fine, lets go there.
High prices and harsh inflation started under that last president, starting with the loss of 20 million jobs, many of those drive the supply chain.

Supply and demand.
Learn it, love it, live it. Period.

People have more money to spend and they do so, exceeding demand. Interest rates are design to tamp down spending to within the supply window.

Want prices to go down? Stop extra spending. More people are taking vacations thsn ever before, you have more money to do so.

Wages are up, unemployment diw, too much spending.

Political talking point balloon popped.
Exactly, double the supply of currency in circulation, and jee f’n wiz, prices explode.
People like yourself ought to be treated like pedos and schools. You ought to be prohibited from getting within 200 yards of a polling station.


Chuikov