Stagflation

[knorB]

Quote from: Animl-AW on Yesterday at 07:40:17 PM

[AKIron]

Nice bike btw.
I’ll have to shown mine. Old skewl soft tail.

Sold it before moving to Texas. Wife says I'm too old for another. We'll see. 

[Captain Virgil Hilts]

Sold it before moving to Texas. Wife says I'm too old for another. We'll see. 

I've got an '07 Night Train, stock other than paint, trim, a K&N air intake, and a MagnaFlow 2 into 1 header, and a '16 CVO Pro Street Breakout, with a Stage IV 117 kit, a Vance and Hines 2 into 1, and Custom Dynamics LED lights (not the ghetto crap).

[Captain Virgil Hilts]

Depending on who and how history is recorded..the last 25 years should go down as a major turning point downward into the crapper...

Eagler

The vast majority of the last 60 years. And that's if you just start with Johnson. Otherwise, a huge amount of "credit" goes to Franklin Roosevelt and Woodrow Wilson, who started it, and then the rest just accelerated it by varying degrees.

[icepac]

Sales figures are up…… because things cost more.

[RotBaron]

Denver home “inventory” increase 😬

Not me btw.


https://twitter.com/his_eminence_j/status/1785379548638368205

Subsequent:

https://twitter.com/his_eminence_j/status/1785654852233597276

Some of these 100%+ increases are merely from 32 homes a year ago to 64 homes now, but in these small zip codes it is substantial nonetheless.

[Eagler]

No balls didn't raise rates again ... better than cutting which would be horrific

Enjoy your higher prices for everything

Eagler

[Meatwad]

Exodus from toejamhole sanctuary city where crime is rampant and punishing evil is not allowed

[Captain Virgil Hilts]

No balls didn't raise rates again ... better than cutting which would be horrific

Enjoy your higher prices for everything

Eagler

It went from just over 2%, to over 7%. And after that, inflation started accelerating again. If the interest rates actually controlled it, inflation would be steady for a given interest rate, and they'd be proportional. But interest rates don't control inflation. The value of money does. They're spending again, creating debt again, and they'll print fake money again, to service the interest on the debt. Therefor, the value of the dollar falls, and you have inflation. You're dealing with a government that has not even written or passed a real budget in many years. Inflation will continue until such time as a budget is passed, spending is controlled, and the debt dealt with, at least to some extent.

Further increase of the prime rate will only serve to crash the economy, which is likely to happen anyway. The crash won't increase the value of the dollar, or even slow inflation. If there's a severe crash, it could completely destroy the dollar (as if it hasn't already) and then your dollar will be worth what Venezuelan money is worth, and you'll have their inflation rate. Keep demanding stupid high interest rates. But if you do, don't say a damned thing about the 100% inflation rate and economic collapse that results.

[Eagler]

Isn't one of the values of money being the interest rate you are charged when you borrow it?

It might not be as effective as in the 70's...see 34 trillion in debt...but high interest rates can control spending thus forcing prices lower....if you can raise rates high enough

The high rates should reduce the idiotic government spending but hasn't yet and probably won't in the future...vote buying and all those neverending wars..

We don't seem to have that ability these  days so be prepared for the inflation cycle to begin again sooner than later if this is as high as he goes...

Eagler

[AKIron]

The high rates should reduce the idiotic government spending but hasn't yet and probably won't in the future...vote buying and all those neverending wars..

Eagler

We jumped the shark. Just a matter of how long we can delay the inevitable crash. Months or years. We'll know come November.

[Maverick]

"The high rates should reduce the idiotic government spending but hasn't yet and probably won't in the future...vote buying and all those neverending wars.."


The government isn't paying the commercial prime rate of interest like citizens who take out a loan. Since they own the bank and the printing press they get a big say on interest rates they pay. The more money they print the less valuable each dollar becomes which is inflation in a nutshell. As Senator Kennedy (LA) said earlier, right now the amount of income of the US government is just enough to take care of, and please excuse the term. entitlements like SS Medicare etc. All other government spending is done with borrowed money and run away printing presses in effect making monopoly money to pay the interest on the debt.

Also inflation is not tied to the economy, rather it is the other way around. High inflation has a chilling effect on the economy, where low inflation allows people to get the fair value of their money in goods and services.

High interest slows the economy as the cost of loans for consumers erodes the buying ability of what they can afford for housing and "big ticket items" ie cars and appliances. A low interest rate allows a family to be able to afford say a $250k home loan with a comfortable payment where as the cost of the loan on high interest limits how much they can borrow based on the payment schedule and may limit their loan to $150k. If you use a loan amortization program / app you can change the interest rate and watch the impact on payments (P&I)

[Captain Virgil Hilts]

Consumer spending does not drive inflation the government spending does. Not even close. The reason is that ALL government spending now is debt, and drives the dollar down in value.

Oh, the jobs report shows they missed projections by 50%. That's massive. The economy is slowing, but inflation is not. They're actually talking about take a half percent off the prime rate because the GDP is dead and so are jobs.

It's actually inflation that's killing the economy now, but the interest rates aren't helping.

[RotBaron]

Across my Apple Stocks app “news” today.

https://qz.com/dow-jones-stocks-jobs-report-fed-interest-rates-apple-1851455014

You’d think you’re reading satire 

[Eagler]

Across my Apple Stocks app “news” today.

https://qz.com/dow-jones-stocks-jobs-report-fed-interest-rates-apple-1851455014

You’d think you’re reading satire 

Yep opposite world where good news is bad news and bad news is good news or whatever the latest manipulation is required to keep stocks and most prices at inflated records...

I expect a drop in rates between now and November for the obvious affect..

Eagler