Are We in Danger of Hyperinflation??

[jaeger19]

Well, the price of lumber at retail is just starting to drop.

A few weeks ago, Home Depot charged $8.30 or so for a 2x4x96 stud. That same item is now down to $7.62.

And of course, the selective nature of price increases makes it very clear that this is a result of issues with supply and demand, not monetary policy. E.g. used car prices soared over the past year, but new cars only increased 3.3% in price during the same time. Meaning that the increase in prices isn't due to the Fed buying up bonds, or keeping interest rates low. It's because a global shortage of computer chips means new car production has fallen, so people who want or need a different vehicle have to buy used.

I'm still wondering if any of the people currently freaking out over inflation will start shrieking about deflation later in the year....

Funny.. I was just about to answer your post with ...
I bet that in a year.. those freaking out about inflation will be shrieking about deflation and even possible wage cuts when the market corrects itself.
Then I saw your last sentence.
Yep.

There are times when we have to worry about inflation. This isn't one of them.

However.. here is another kicker.. you know what is known to reduce inflation? TAX INCREASES.
Hmmm... soooo... I wonder if those that are worried about inflation.. .support tax increases?

 

[Kushinator]

No. I was referring to government bonds

It's your lie... tell it however you want.

What you call semantics, I call english. Words have meaning and your interpretation of that meaning isn't relevant compared to the actual definition.

The post you quoted specifically referenced the yield for a 10 year Treasury bond.

Mortgage backed securities are not government bonds... they are securities composed of individual mortgages. Agency issued MBS bonds, while backed by the Treasury, are entirely different debt instruments. Furthermore, the motivation behind MBS and Treasury debt purchases are very different in that the former targets a boost in liquidity for the secondary mortgage market and the latter pertains to tailoring risk preferences to the overall investment landscape.

It's always a best practice to properly source your claims. Failure to do so is just an excuse to squirm away from spewing nonsense.

For example... care to cite this claim?

Right now we are tracking a ~5.8%, just CPI, for 2021.

If i don't spoon-feed you accuracy, there won't be anywhere left to squirm.

By all means....

 

[bave]

The post you quoted specifically referenced the yield for a 10 year Treasury bond.

If you knew anything about the fixed income market you would realize that the 10yr T-Note is the basis for comparison of *all* fixed income obligations.

Mortgage backed securities are not government bonds... they are securities composed of individual mortgages. Agency issued MBS bonds, while backed by the Treasury, are entirely different debt instruments. Furthermore, the motivation behind MBS and Treasury debt purchases are very different in that the former targets a boost in liquidity for the secondary mortgage market and the latter pertains to tailoring risk preferences to the overall investment landscape.

Not really, for one reason. Who guarantees the bonds? The US government. That's the only thing a debt investor will care about.

It's always a best practice to properly source your claims. Failure to do so is just an excuse to squirm away from spewing nonsense.

Which I did, gave you, and makes you look the fool.

 

[Kushinator]

Who guarantees the bonds? The US government.

Nothing to offer other than to squirm.