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Inflation Beyond the Stars Thread for April 12


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2022 Apr 12, 12:49am   27,990 views  335 comments

by AmericanKulak   ➕follow (8)   💰tip ($0.34 in tips)   ignore  

Since we know the numbers are going to suck since Peppermint Patty is leading the Amen Corner Media to blame Putin for it:
https://patrick.net/post/1344548/2022-04-11-putin-s-price-hike-failing-administrati

Frankly, I prefer my spaceship to have big tits and not fake inflated ones.

EDIT - numbers drop:
America goes back to the 80s: Surging gas prices and higher rents push inflation to 41-year high of 8.5% as White House blames it on Putin invading Ukraine
The consumer price index rose 8.5% in March from a year ago, the fastest increase since December 1981
Housing costs, which make up about a third of the index, have escalated and show no signs of cooling
Gasoline prices soared 49% in March from a year ago as the war in Ukraine rocked energy markets
Biden's administration tried to get ahead of the dire inflation news by blaming Russian leader Vladimir Putin
But Republicans place the blame for soaring prices on 'Democrats' reckless spending and failed policies'

https://www.dailymail.co.uk/news/article-10711311/Inflation-soars-new-41-year-high-8-5.html?source=patrick.net

« First        Comments 19 - 58 of 335       Last »

21   ad   2022 Apr 27, 11:24am  

And companies like this advertising on Facebook to entice people to buy a vacation rental property.

Maybe this is showing we are at the peak of the housing and asset bubble when there are advertisements like this.


22   EBGuy   2022 Apr 27, 2:21pm  

Note about I-bond timing. If you believe the US will go into a inflationary spiral forever, or if you'll need the bond money before rates fall, then wait until next month to get the higher rate. Otherwise, buy right now (before May 1) as you'll get a good rate (7.12% annualized), and then an even higher rate October 1 when the six month window resets the rate (as March CPI numbers show the rate will rise for the six month window of May 1 to Oct. 31).
23   ad   2022 Apr 27, 8:05pm  

DooDahMan says
The analysis of Securities and Exchange Commission filings for 100 US corporations found net profits up by a median of 49%,


Tyson Foods was $92 a share in January 2020. Now it is about $94 but its valuation (P/E) is extremely low.

.
25   ad   2022 Apr 28, 9:45am  

Economy shrank by 1.4% during first quarter of 2022.

I expect it will shrink the second quarter given many factors like Russia's war in Ukraine and skyhigh gas prices.

.
26   Patrick   2022 Apr 28, 8:39pm  

https://entrepreneurshandbook.co/the-doom-loop-161a42bbcd50?source=patrick.net


The Federal government will soon pay more in interest on its debt than it receives in tax receipts if it’s forced to pay an interest rate that is much higher than today’s. That is the start of an insolvency doom loop. The obvious solution is to redirect the Fed off of its inflation-fighting path towards one of accommodation once more. Accommodation will come in the form of explicit price fixing of the Treasury curve, which is euphemistically called Yield Curve Control (YCC).
27   Misc   2022 Apr 29, 11:08am  

However bad you think we have it in the States, Europe is worse, China's economy isn't there, and people are giggling at Japan.
29   mell   2022 Apr 29, 9:09pm  

Misc says

However bad you think we have it in the States, Europe is worse, China's economy isn't there, and people are giggling at Japan.


Europe is continuing zirp/qe and thus the dollar has gotten stronger again and the Euro crashed. It's maybe somewhat worse over there, not by much though. You have more opportunities here to react to changes and make money from it as the US economy is still freer than Europe's, but the wealth gap is bigger here.
30   Misc   2022 May 1, 3:43am  

mell says

Misc says

However bad you think we have it in the States, Europe is worse, China's economy isn't there, and people are giggling at Japan.


Europe is continuing zirp/qe and thus the dollar has gotten stronger again and the Euro crashed. It's maybe somewhat worse over there, not by much though. You have more opportunities here to react to changes and make money from it as the US economy is still freer than Europe's, but the wealth gap is bigger here.


Just over 20% of the population are retired in Europe,

https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Ageing_Europe-_statistics_on_working_and_moving_into_retirement&source=patrick.net

For Western European nations the percentage of those on disability for those working age runs in the mid-20%'es.

About 25% of their economies are welfare spending. Yes includes the huge numbers of muslim immigrants. https://fullfact.org/europe/does-europe-account-half-worlds-welfare-spending/?source=patrick.net

The percentage of the populous working for the government runs about 18%.

About 15% of the population is under 18. https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Population_structure_and_ageing&source=patrick.net

When you factor in those in university and those in labor unions. There just ain't that many doing any real work.

In France (pre-Covid) the taxes on the working French were running about 70% and the government was going to increase taxes even more (hence the yellow jacket revolts).

There is no European economy, it is all fake, people are just going through the motions. --- They will QE until they implode,
31   mell   2022 May 1, 9:12am  

Misc says
There is no European economy, it is all fake, people are just going through the motions. --- They will QE until they implode,


Germany is an economic powerhouse despite globalist marxists and greens trying to wreck it. Other countries do ok as well, even in Southern France life is grand. There is a slight US advantage for businesses but shrinking due to xiden, and for higher income earners. That's about it. The tightening of the Fed will strengthen the dollar but may be bad for trade deficit though it's necessary to combat inflation. The US still has the highest gdp per capita, but compared to Germany (which pretty much only used to mine coal) it is a a abundant in natural resources.
33   Ceffer   2022 May 1, 12:07pm  

I'm estimating between inflation from last year through stock market downward adjustments so far, the Hummer Fleet has deflated by a real 'spending decline' of at least 20 percent, maybe 25 percent. We'll see how it goes. I haven't started painting cardboard signs to use at the intersections yet. I should probably invest in a high quality taser to chase the other bums away from the prime spots.
42   RC2006   2022 May 13, 12:29pm  

Patrick says








https://www.patrick.net/post/1338778/2021-04-14-inflation-incoming?start=236

Note that original Whitehouse post was just a paragraph or two and has been edited and grown over the year.
46   Patrick   2022 May 24, 11:52am  

https://nypost.com/2022/05/23/biden-praises-gas-prices-as-part-of-incredible-transition/

Out of touch as ever, President Biden celebrated record-high gas prices Monday, gushing that the pump pain was part of “an incredible transition” of the US economy away from fossil fuels.
47   Patrick   2022 May 24, 11:45pm  

https://nitter.net/AlexEpstein/status/1529098268327616513#m


Alex Epstein
@AlexEpstein
16h
My new book Fossil Future comes out today, and not a moment too soon.

Anti-fossil fuel policies have caused a global energy crisis--which is now causing a global food crisis.

Fossil Future proves definitively that the world needs more fossil fuels.

I wrote Fossil Future because, as the current energy crisis is tragically demonstrating, billions of lives depend on the *enormous and widely-ignored benefits of fossil fuels*.

Fossil Future carefully weighs BOTH the benefits and side-effects of fossil fuels.

When you weigh both the benefits and side-effects of fossil fuels from a human flourishing perspective, you find that most of the world's thought leaders are 180° wrong: global human flourishing doesn't require rapidly eliminating fossil fuel use, it requires expanding it.
49   Patrick   2022 May 28, 5:26pm  

https://patriotpost.us/articles/88666


That Other Driver of Inflation: Regulation
Excessive government spending isn’t the only activity that causes costs to skyrocket.
50   GNL   2022 May 28, 8:53pm  

HunterTits says

Patrick says






https://boriquagato.substack.com/p/kitten-corner-the-inflation-diet


That was the 'logic' of Weimar Germany too. That's why the Reichsbank kept printing and printing and printing.

Bet you can find the same kind of crap happened in Zimbabwe as well.

Pretty sure Germany did it to inflate away the war reparations debt.
51   NDrLoR   2022 May 28, 9:19pm  

HunterTits says
See's Candies
For years, my Aunt Caroline in LA would send her standard gift of See's Candies every Christmas and I always had dibs on the two pieces of mocha--oblong with little decorettes all over it. Several years ago I went to Dallas to hear the Singapore Slingers play at a venue in North Park Mall. I went early so I could explore it since I hadn't been there in a long time and I made a bee line for the See's Candy Store. I told the employee which one I wanted and she gave me two complimentary pieces! After Aunt Caroline died, I missed those for years!
52   Shaman   2022 May 29, 7:00am  

I think we need to stop considering Democrat leadership to be stupid and start realizing that they are just evil and doing this entirely on purpose for our destruction.

https://m.theepochtimes.com/biden-raising-gas-prices-on-purpose-top-republican-says_4497948.html?utm_source=share-btn-copylink
53   Patrick   2022 Jun 3, 1:37pm  

https://rudy.substack.com/p/a-very-ordinary-life


Those were incredible times. The inflation began slowly around 1921 and climbed for a year or two. By the end of that period ten marks had become the value of one mark. But in 1923 it started to climb like wild fire. A hundred or a thousand marks bought you what you used to get for a mark, then into the millions. Finally it took hundreds of millions and billions of marks to buy a towel or something. There were ordinary postage stamps that were the value of one billion marks. One billion marks to post a letter.

During the inflation the wage rates changed every day, and then, at the height of the inflation, twice a day. At the end of the day you got your day’s pay. You had to spend it right away because the next day your cash would be worth a half or less of what it was the day before. The stores stayed open late just for that. They were trundling truck loads of cash back and forth from the banks to the factories every day. Whatever money anyone had managed to save was completely lost.

At the beginning of the inflation I had saved up a hundred marks towards a sewing machine. When I saw what was happening to the value of the money I decided I'd better buy something quick, but I had waited too long. Because all I got for that hundred marks, which was quite a few months’ saving, was a skimpy blouse — made of paper. Money was literally not worth the paper it was printed on. But that was nothing, many people who had their savings in bank accounts or government bonds lost everything they had managed to scrape together during their entire lives for their retirement.

Once the inflation really started it was a runaway. The banks just took the bills in and printed over them. Ten marks would have a thousand mark printed over it and later it would be printed with 100,000 mark. You could see how things were starting to break down. Some towns began to issue their own scrip tied to local values and exchange. Naturally, that didn’t work either.

Finally, there was a revaluation and each person could turn in so much of the previous money, if they hadn’t spent it for nothing already, and get a small amount of new currency. It was very little, 200 marks or so. And the rest was all lost. I’m not sure how they did manage to stabilize the currency, but once the government decided to take action they did it.

Of course all the little people who had small savings were wiped out. But the big factories and banking houses and multi-millionaires didn’t seem to be affected at all. They went right on piling up their millions. Those big holdings were protected somehow from loss. But the mass of the people were completely broke.

And we asked ourselves, “How can that happen? How is it that the government can’t control an inflation which wipes out the life savings of the mass of the people but the big capitalists can come through the whole thing unscathed?” We who lived through it never got an answer that meant anything. But after that, even those - people who used to save didn’t trust money anymore, or the government. We decided to have a high-ho time whenever we had any spare money, which wasn’t often.


Why didn't people just immediately buy gold or silver when they got money? At least it would hold value more or less.
54   Bd6r   2022 Jun 3, 1:51pm  

Patrick says
Why didn't people just immediately buy gold or silver when they got money

Need to eat and pay bills. Not much disposable income
Same in E Europe when inflation was raging in early 90's
55   Onvacation   2022 Jun 3, 4:13pm  

Patrick says
all the little people who had small savings were wiped out.

Not the ones who kept their money in coins.


56   AmericanKulak   2022 Jun 3, 4:16pm  

Buy cheap little silver and gold rings and necklaces.
57   Onvacation   2022 Jun 3, 4:36pm  

Patrick says
Why didn't people just immediately buy gold or silver when they got money? At least it would hold value more or less.

Some did. Circulating coins were quickly hoarded. German coins were made of silver, iron, aluminum, and copper. Those that traded their paper for coin were able to weather the inflation.

US Coins used to be made of gold, silver, nickel and copper. Modern coins are made from base metal their value mostly fiat. At the current rate of inflation even our current zinc-copper 25 cent parking tokens will be worth more than a quarter dollar.
58   EBGuy   2022 Jun 3, 5:46pm  

Gold/silver ratio is hovering around 85 these days. Somethings gotta give...

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