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Inflation Beyond the Stars Thread for April 12

By AmericanKulak follow AmericanKulak   2022 Apr 12, 12:49am 2,584 views  119 comments           share      

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    « Previous    Comments 78 - 119 of 119   

78   ad   2022 Jun 4, 10:39pm  

AmericanKulak says

Buy silver chains and cheap rings. Preferably at the Flea Market from a long time vendor there.

You don't want to be flashing gold coins and expensive bling at the Black Market when TEOTWAKI. The security guards will call their gang pals (probably the same group hired to be guards) and follow you home, and they will have more weapons and be more of them.

Say "Oh, this is my last thing, my grandma gave me this for my Communion, but my kids really need to eat."


As far as The End of the World As We Know It, I think what will matter most are potable water, non perishable food and bullets. Those homesteaders in Alaska will fare a lot better than the survivors in the lower 48. If you live near salt water, learn how to make a solar still to make fresh water.
79   HeadSet   2022 Jun 5, 7:50am  

richwicks says

AmericanKulak says
TEOTWAKI.


The
End
Of
The
World

but I don't get AKI.

As We Know It. TEOTWAWKI.
80   Shaman   2022 Jun 5, 9:22am  

Inflation isn’t the end of the world. It’s just the end of dollar stores, dollar menus at McDonalds, and cheap gas.

For home debtors, it’s a gift.
We will see at least 50% inflation from 2020-2026.
That means your million dollar shack will be worth $1.5 million, but your $800,000 debt will be “worth” $600,000 in inflation adjusted value.
Creditors are going to get shafted hard. Couldn’t happen to a nicer bunch of ASSHOLES!
81   B.A.C.A.H.   2022 Jun 5, 10:19am  

Shaman says
We will see at least 50% inflation from 2020-2026

If my arithmetic using the exponential is right, 50% price rise in 6 years is 6.7% annualized. Yikes.

Shaman says

Creditors are going to get shafted hard. Couldn’t happen to a nicer bunch of ASSHOLES!

Yes and no.
Massive capital destruction for pension funds and insurance companies. Yes their managers are probably a bunch of assholes, but that won't stop wee little folk like we little folk from getting hurt.

Shaman says
That means your million dollar shack will be worth $1.5 million, but your $800,000 debt will be “worth” $600,000 in inflation adjusted value.


If your pay or income keeps up with the ability to service the shrunken debt. Like, no disruption in employment, no haircut in retirement income, no tax increases.

Can you say, "Stagflation?".
84   richwicks   2022 Jun 6, 12:39am  

B.A.C.A.H. says
Shaman says
We will see at least 50% inflation from 2020-2026

If my arithmetic using the exponential is right, 50% price rise in 6 years is 6.7% annualized. Yikes.


We are in for massive inflation.

I need to post the national debt priced in commodities over the last 100 years or so. The pattern is clear. $100 will buy you a cup of coffee in 2030.

People who are unaware of Hayek or Mises have no idea what is coming. Austrian economics is NOT a system, it's a science, the science of what happens in any market. Communist, free market, fascist, kleptocracy, anything. Economics is the study of how people interact in groups, it's almost psychology. Keynesianism is a system, a failed one. It was designed to fail. Given power to a centralized authority always results in a calamity because power always corrupts.
85   REpro   2022 Jun 6, 11:41pm  

DooDahMan says

Inflation will be higher for longer — and you’re not going to like what comes next

Prices for oil, natural gas, food and other goods will stay elevated while economic growth slides, bringing stagflation. Let’s review six factors now shaking the U.S. and global economies that set the stage for stagflation:

1. Oil

2. Natural gas

3. Food

4. Interest rates

5. Supply-chain problems

6. Deglobalization

https://www.marketwatch.com/story/6-reasons-inflation-will-stick-around-longer-and-youre-not-going-to-like-what-comes-after-11653415808?mod=home-page


Two economic indicators do not play well in regard of my knowledge of economy.
This is:
1. Price of Gold. Investor usually run up gold prices to avoid inflation burn. Not this time.
2. Price of 10y. Treasury Bonds. This is typical money parking for big investors. They went up but well below when they should be. Usually, they exceed inflation by about 1.3%
Is then inflation seen as a very short event?






86   zzyzzx   2022 Jun 10, 7:04am  

https://finance.yahoo.com/news/may-inflation-data-june-10-2022-212834308.html

Inflation hits 40-year high as CPI rises 8.6% in May

So wall street takes a dump because they think that the federal reserve is maybe possibly going to do the right thing and jack up interest rates more than .5% next week?
87   B.A.C.A.H.   2022 Jun 10, 7:53am  

I think I've read more than half of the US dollars are outside of the US.

But I think maybe they're referring to physical paper bills, like 100's or whatever. Maybe if we include all the credit and whatnot it's a lot more than half.

So now that we've been asleep at the wheel, distracted by COVID and Gun Nuts and The Kardashians and Same Sex Marriage and Trannies and Abortion RIghts, we allowed the fate of our currency to get outside of our control. It's our own fault. The federal reserve board can peg its overnight loan rate and tweak its Balance Sheet, but most of the dollars are outside its control. I suppose it's like steering a motorboat in front of a 100 meter tall rouge wave. (Or maybe in our case, a McMansion cruise liner packed with obese leisure travelers).
88   Bd6r   2022 Jun 10, 8:17am  

Obligatory:

90   Patrick   2022 Jun 10, 8:05pm  

https://nypost.com/2022/06/10/inflation-costing-americans-an-extra-460-per-month-analysis/


Inflation costing Americans an extra $460 per month, analysis says
92   Patrick   2022 Jun 10, 9:47pm  

https://www.dailywire.com/news/shrinkflation-cereal-brand-cuts-amount-per-box-by-17-toilet-paper-brand-slashes-roll-size-24

Shrinkflation: Cereal Brand Cuts Amount Per Box By 17%; Toilet Paper Brand Slashes Roll Size 24%
93   Booger   2022 Jun 11, 11:33am  

These numbers look low to me:
94   Booger   2022 Jun 11, 11:34am  

Patrick says

https://nypost.com/2022/06/10/inflation-costing-americans-an-extra-460-per-month-analysis/



Inflation costing Americans an extra $460 per month, analysis says



I'm thinking that it is more than that. Maybe for just food or gas alone?
95   Patrick   2022 Jun 11, 12:54pm  

I also think inflation is clearly far higher than the supposed 8.5%.
96   ad   2022 Jun 11, 1:12pm  

.
CPI (government reported inflation) was about 2.3% a year since the mid 1990s to 2021 :-/

;


,
100   ad   2022 Jun 12, 12:49am  

Patrick says

notthebee.com/article/come-read-this-thread-on-why-inflation-is-way-worse-than-theyre-telling-you


Where did all the money go ?

If all the new money pumped up housing that means housing prices need to return to early 2020 price levels ?

So the S&P 500 (around 4000 points) needs to return to the February 2020 level (around 3300 points) ?

.
103   AmericanKulak   2022 Jun 12, 12:56am  

Patrick says

I also think inflation is clearly far higher than the supposed 8.5%.


No doubt about it. Closer to 15-20%.

Don't forget Shrinkflation and Hedonics.
105   ad   2022 Jun 12, 4:30pm  

Patrick says








https://thegoodcitizen.substack.com/p/i-am-uncle-sams-inflation

.

Where did all the money go ?

If all the new money pumped up housing that means housing prices need to return to early 2020 price levels ?

So the S&P 500 (around 4000 points) needs to return to the February 2020 level (around 3300 points) ?

.
106   Patrick   2022 Jun 13, 11:13am  

https://adventuresincapitalism.com/2022/06/13/volcker-and-inflation/

Here’s my alternative view; what if monetary actions mostly serve to impact the price of risk assets, while fiscal mostly impacts the economy’s growth rate, and government policy mostly controls for inflation? As I’ve experienced the interplay of these three factors over more than two decades as an investor, I increasingly think that this is the case.
116   RC2006   2022 Jun 22, 6:06am  

All over firework store employees put them up.

117   Patrick   2022 Jun 22, 10:38am  


RNC Research
@RNCResearch
1h
Q: “Would you say that the war in Ukraine is the primary driver of inflation in America?”

Fed Chair Powell: “No. Inflation was high before, certainly before the war in Ukraine broke out.”
119   Patrick   2022 Jun 26, 2:33pm  

https://gettr.com/user/EdwardDowd


Edward Dowd
@EdwardDowd
Jun 23
We have twin policy errors.

First error: The energy policies of the US & EU coupled with supply chain breaks are primarily responsible for inflation. This is the first commodity cycle where the $DXY has had a concurrent rise with commodities suggesting mostly policy not monetary. Throw in Ukraine war and it’s an accelerant.

Second Error: The Fed is tightening into a credit contraction caused by first error.

Unless the Fed reverses course we are headed for a very hard landing.

Elections in fall are key to reversing first error. Any event that disrupts elections will cause things to become even more unhinged.

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