patrick.net

Patrick says

https://nypost.com/2022/01/03/biden-says-he-found-out-from-family-friend-that-meat-costs-are-soaring/?utm_campaign=patrick.net&utm_source=patrick.net&utm_medium=patrick.net

I saw that. Next dems will try to set prices on common things, push to take over meat companies, maybe gas. Mmm where have we heard all this before?

RC2006 says

dems will try to set prices on common things, push to take over meat companies, maybe ga

I am not apologizing for those notions, no way. Hedonic-adjustments for inflation indices are part of a larger conspiracy of lies to paper over our declining standard of living. I get it.

That said, we eat way more meat than we should, and waste way more gasoline than we need for our economic activity. Whether we think so or not, these are discretionary expenses that we can easily, elastically, reduce, with no decline in our standard of living.

Here's two common expense thingees they ought to focus on: health care and education.

So far inflation hasn't impacted us that badly (yet) in our house. Gas is more, but thanks to covid we travel less, and drive less, not more, so its a wash.

I cringe at the thought of what our next fuel oil bill will be to heat the house though.

Food has gone up noticeably but month to month it's not a huge expense. Our two biggest monthly line items are the house and childcare which are fairly static.

After almost two decades of near zero interest rates, we all knew the free money Era would end at some point. Part of me is surprised it took this long. I'm not convinced if this inflation is good, bad or indifferent. It depends on how severe it is and for how long.

There are always trade offs. I suspect the Fed will be forced to raise rates to combat this inflation surge. That means a better yield on my savings account which has been insultingly low, not that there is much in there.

Question - since inflation is seemingly here to stay, how are you adjusting your investments accordingly?

RE: greaternycdude’s question

In financial planning, one of the reasons to stay somewhat invested in stocks even though you may be retired is specifically to keep up with inflation.

If you’re not retired you can continue to invest for capital appreciation in retirement accounts as you have been (my assumption).

I’m retirement age but I want capital appreciation still, so I have a higher stock allocation than most “advisers” would recommend. I don’t care because I have sufficient income for my needs and even some desires ;)

What a retired person theoretically needs is income and just a bit of capital appreciation to combat inflation.

I’m not making any changes, but if the Democrats lose the House in 2022, I want to be in stocks then for shit sure.

clambo says

one of the reasons to stay somewhat invested in stocks even though you may be retired is specifically to keep up with inflation.

I've read that German savers who had bonds, CD and whatnot were completely wiped out by the Weimar Inflation. Does deposit insurance like FDIC really matter when something like that happens?

The German stocks did not keep up with the Weimar Inflation. They lost something like 80% of their value vs other currencies. But that was still better than the cash and bonds which lost 100%. Gained it all back after the crisis abated.

I don’t worry about a repeat of Weimar history in the USA.

However, if you are worried about the loss of value of the US dollar, you can buy a Swiss stock ETF.
FLSW. I own a little bit of this Franklin ETF.

I will never buy gold, silver, BTC, etc.

The problem is that there are not very many Swiss stocks in the index, so it’s not very diverse.

clambo says

I don’t worry about a repeat of Weimar history in the USA.

Neither do I, but one similar to that of the 70's would be pretty bad in any event.

7% inflation number was released today, and the markets sloughed it off.

The problem in the 70’s was largely the Arab oil embargo (took revenge on the west for arming Israel).

After the embargo, they raised the price of oil.

As an investor I am more curious about interest rates rather than inflation.

But, I could end up being fucked since I am not working anymore.

rocketjoe79 says

7% inflation number was released today, and the markets sloughed it off.

That was a signal/prod to the stupid money to keep buying stocks because if you just sit on the sidelines you’re going to loose value. All so the smart connected money can realize more gains from the stupid pumping, and stop the music at some yet undetermined time.

Got to figure out how to get the elite signals to not get smashed on investments and take the gains…

https://notthebee.com/article/inflation-hit-a-crazy-7-in-december-the-highest-rate-since-freaking-1982?source=patrick.net

That's the highest in 40 years.

If gov admits 7 it must actually be much higher in metros in reality. Massive money creation like 6T (for now) is primary factor. The cycle should be in early stage before all 6T get into the system. Way too much money chasing too little existing goods. It could eventually leads to recession. What a corrupt and crazy govs around.

https://notthebee.com/article/retail-spending-in-december-was-1800-lower-than-projected-because-of-inflation-and-i-dunno-i-think-that-13-trillion-we-printed-since-the-start-of-the-pandemic-might-have-backfired-a-bit?source=patrick.net

Retail spending in December was 1.8% lower than projected because of inflation and I dunno I think that $13 trillion we printed since the start of the pandemic might have backfired a bit

Someone put a note on my car this past week asking me to call them if I wanted to sell. I drive a less than pristine '98 Civic. Seems that speculation is driving used car market. As long as we keep chasing bubbles, instead of investing in honest economics, we will continue to see recessions/depressions and people will continue to lose their shirts. Look for or create goods or services people really need. Stop being greedy and chasing get rich quick schemes. The lack of moral integrity in our current economic system has directly led to the last two years.

Retail spending was lower after the free government cash slowed down and people were recently forced to pay the rent.

clambo says

people were recently forced to pay the rent.

LITERALLY HITLER!!!!!

Inflation is not Xoe Bridens fault, nor his duty, says Xoe and his loyal propaganda outlets.

Hitler finds out about his gas price increases:
https://youtu.be/50fZu8ARSyg?source=patrick.net

https://notthebee.com/article/inflation-is-a-whopper-burger-king-dominos-dennys-all-shrink-their-value-menus-in-response-to-bidenflation?source=patrick.net

Another house next to us sold before hitting the market with an offer way above asking. Thought it was at least possible that we bought close to the peak last year but leaving SF was top priority. Now it's clear house prices will continue to climb at around inflation rate or higher, esp. in rural areas. We'll be closing in on a 100k increase at the 1 yr anniversary. Fucking insane, but it won't stop until all boomers are dead and prob many Gen xers as well as quite a few Gen xers became pretty wealthy by the related tech bubble. Asset inflation is here to stay

mell says

it won't stop until all boomers are dead and prob many Gen xers as well

Might be sooner than you think.

Onvacation says

mell says

it won't stop until all boomers are dead and prob many Gen xers as well

Might be sooner than you think.

True but relatively speaking in person years the boomers won't perish much quicker. Jab rates among middle aged to below boomer age is more significant on buying power loss since they will inherit and they are more eager to buy homes than the youth. Plan is still to move out of state within 5-7 years. A volatile market is def more fun if one can stay on top of it. It's also more natural than what we have seen since 2008 aka continuous levitation by the fed killing the vix

Hircus says

Inflation is not Xoe Bridens fault, nor his duty, says Xoe and his loyal propaganda outlets.

Thanks to the gigantic national debt, the Federal Reserve can NOT curb inflation. If it raises rates enough to do so, our country will be forced to default on the national debt which will ruin the value of our money even faster. The only way forward is to learn to live with inflation for the next decade.

Or, if my most dire suspicions are correct, the vax will be killing off the boomers within the next couple of years and their wealth will be taken via death taxes to pay off the debt.

Could go either way.

HunterTits says

Shaman says

If it raises rates enough to do so, our country will be forced to default on the national debt

No it won't.

It's a "soft default" through inflation.

https://www.foxbusiness.com/economy/producer-prices-inflation-january-2022?source=patrick.net

https://www.investmentwatchblog.com/walmart-has-started-putting-steaks-inside-locked-metal-cages-to-keep-shoplifters-from-taking-them/?source=patrick.net

Since Joe Biden entered the White House, just about every category of meat has surged in price…

The price beef and veal products increased 16.0 percent, according to BLS. That included a 13.0 percent increase in the price of uncooked ground beef; a 17.1 percent increase in the price of uncooked beef steaks; and a 19.2 percent increase in the price of uncooked beef roasts.

The price of pork increased 14.1 percent.

The price of chicken increased 10.3 percent.

Of course food prices are rapidly escalating across the board, and major grocery chains are now facing a sustained wave of theft that is unlike anything that they have ever experienced before.

https://tobyrogers.substack.com/p/the-billionaires-have-hired-the-millionaires?source=patrick.net

You want a trillion dollars a year in global economic stimulus? Abandon the vaccine program worldwide immediately and permanently. Pharma is inflicting a trillion dollars a year in iatrogenic injury worldwide via vaccine programs. Pharma gets paid hundreds of billions of dollars for toxic vaccines and 5x to 10x more for patented treatments for the chronic conditions caused by vaccines. It’s the most corrupt business model since the Middle Passage. As governments around the world run out of money in the coming years and cannot print more without triggering hyperinflation (as is already happening in the U.S.), abandoning the vaccine program will be the ONLY way of injecting economic stimulus into the economy.

Some people are not able to hear this yet. But as our economic and political systems collapse over the coming years under the weight of Pharma fascism, what I’ve just described will eventually become common sense.

We just drove from Houston to San Antonio. Gas prices in most places above 3.50. Thank you brandon!!!

Bd6r says

We just drove from Houston to San Antoni. Gas prices in most places above 3.50. Thank you brandon!!!

I'll be driving from San Diego to San Antone Late September or early October.

My evacuation date range is pretty much set in stone at this point.

I wonder if truckers will still be available to help me with my move.

FJB says

My evacuation date range is pretty much set in stone at this point.

Let me know when you move. We bought property half way between Houston and SA, and are in process of fixing house. You are welcome to drop by and we can shoot some guns.

Bd6r says

You are welcome to drop by and we can shoot some guns.

Hells Yeah I will!

https://spectatorworld.com/topic/monetary-bubble-burst-inflation/?source=patrick.net

Let’s contemplate, to coin a phrase, a basket of deplorables. US inflation just hit 7.5 percent, the highest in forty years. EU inflation is 5.1 percent. UK inflation, now 5.5 per cent and the highest in thirty years, is expected to reach 7 percent by spring. All these indices are headed in one direction. Inflation is often described as a tax, but I have a better word for it: stealing.