Inflation surges 9.1% in June, most since November 1981 - Yahoo Economics

[Jkca1]

I remember 1981, it was the start of a depression in the Detroit area. I expect the next few weeks will see earnings re-evaluated for Q3 and Q4. The housing, auto and retail markets are going to feel some pain but renters, well, look for a lot more people living in boxes on the street. The Fed will continue it's 75 basis point policy this year and next until we have a couple of quarters of meaningful statistics that show inflation is on a downward slope.

BTW I officially declare we are in a recession this AM.

I am looking at the S&P getting down into the 3400 - 3600 range before too long.

We should also expect the labor market to soften as we move into the fall and unemployment will correspondingly will rise. That will help bring down inflation but it is going to be a slow process. I am guessing we don't get to 2% inflation for a year or more.

 

[Ginger Ale]

Inflation is at an all time high in the world, here’s how it affects consumer spending

55% of people said that in the light of current inflation the prices have increased while 9% said that it has stayed the same.

www.digitalinformationworld.com

It's affecting the whole world right now, because we had a pandemic which affected supply and the Russian/Ukraine war. It sucks, but I know it will pass.

 

[EdwinWillers]

Hang on, cuz we're in for a very rough ride.

 

[Juks]

Honestly, it might go down again in a couple of month (it take that long for the lower prices to be seen out to customer). Raw materials prices has taken a dive.

 

[Mycroft]

I remember 1981, it was the start of a depression in the Detroit area. I expect the next few weeks will see earnings re-evaluated for Q3 and Q4. The housing, auto and retail markets are going to feel some pain but renters, well, look for a lot more people living in boxes on the street. The Fed will continue it's 75 basis point policy this year and next until we have a couple of quarters of meaningful statistics that show inflation is on a downward slope.

BTW I officially declare we are in a recession this AM.

I am looking at the S&P getting down into the 3400 - 3600 range before too long.

We should also expect the labor market to soften as we move into the fall and unemployment will correspondingly will rise. That will help bring down inflation but it is going to be a slow process. I am guessing we don't get to 2% inflation for a year or more.

The fed is wasting their time and actually making things worse. This inflation is NOT consumer driven...it's supply driven. It simply costs more for producers to get their products and services to market. This increase is caused by the Globalists attacks on the energy system.

We won't see inflation drop until the Biden Democrat administration is removed. That won't happen until the 2024 election. Sorry, but we are in for a rough time for the next 2 1/2 years.

 

[reflechissez]

I remember 1981, it was the start of a depression in the Detroit area. I expect the next few weeks will see earnings re-evaluated for Q3 and Q4. The housing, auto and retail markets are going to feel some pain but renters, well, look for a lot more people living in boxes on the street. The Fed will continue it's 75 basis point policy this year and next until we have a couple of quarters of meaningful statistics that show inflation is on a downward slope.

BTW I officially declare we are in a recession this AM.

I am looking at the S&P getting down into the 3400 - 3600 range before too long.

We should also expect the labor market to soften as we move into the fall and unemployment will correspondingly will rise. That will help bring down inflation but it is going to be a slow process. I am guessing we don't get to 2% inflation for a year or more.

How so?

 

[Mycroft]

How so?

Because the fed is determined to reduce consumer demand, producers won't be selling as much of their product. That means they won't need to produce as much product. That means they won't need as many employees. That means layoffs.

And it's already happening.

A wave of layoffs is sweeping the US. Here are firms that have announced cuts so far, from Coinbase to Tesla.

Peloton laid off nearly 3,000 employees, Better.com slashed 4,000. Now, job cuts are coming for real estate brokerages and crypto firms.

finance.yahoo.com

 

[jmotivator]

The fed is wasting their time and actually making things worse. This inflation is NOT consumer driven...it's supply driven. It simply costs more for producers to get their products and services to market. This increase is caused by the Globalists attacks on the energy system.

We won't see inflation drop until the Biden Democrat administration is removed. That won't happen until the 2024 election. Sorry, but we are in for a rough time for the next 2 1/2 years.

It's weird how every single would-be socialist assured everyone that raising the minimum wage is in no way connected to inflation and yet inflation ALWAYS swallows wage gains following increases in minimum wages...

Of course, Biden has been adding to the inflation by increasing and extending unemployment benefits, essentially paying the labor market to not produce while deep blue states did everything in their power to smash the supply chain.

I joked when Biden was elected that the Democrats would be blaming the 2020 election on the Russians, and it's going to be MUCH closer to true than I would have thought.

 

[lwf]

Hang on, cuz we're in for a very rough ride.

More likely it will pass by next year. This is just the market correcting itself. Once production ramps up and demand goes down, prices will fall again, aside from gasoline.

 

[EdwinWillers]

More likely it will pass by next year. This is just the market correcting itself. Once production ramps up and demand goes down, prices will fall again, aside from gasoline.

With any luck, you might be right; and I think most are hoping for that luck.

 

[Jkca1]

It's weird how every single would-be socialist assured everyone that raising the minimum wage is in no way connected to inflation and yet inflation ALWAYS swallows wage gains following increases in minimum wages...

Of course, Biden has been adding to the inflation by increasing and extending unemployment benefits, essentially paying the labor market to not produce while deep blue states did everything in their power to smash the supply chain.

I joked when Biden was elected that the Democrats would be blaming the 2020 election on the Russians, and it's going to be MUCH closer to true than I would have thought.

You want weird? How about all of us taking a "stimulus check" and then believing there would be no repercussions? Well not all of us;

• Wednesday 30 Dec 20

"Former U.S. Treasury Secretary, Chief Economist of the World Bank, Director of the National Economic Council, and President of Harvard University, Lawrence Summers has warned against any implementation of a $2,000 COVID relief check.

Writing in business publication Bloomberg, the 66-year-old economist insisted that the proposal, which has drawn support from figures as diverse as Bernie Sanders and Donald Trump, was a “big mistake,” as it would likely “overheat the economy.”

 

[Roadvirus]

November looks like it's going to suck more and more for the Democrats....

 

[jmotivator]

You want weird? How about all of us taking a "stimulus check" and then believing there would be no repercussions? Well not all of us;

• Wednesday 30 Dec 20

"Former U.S. Treasury Secretary, Chief Economist of the World Bank, Director of the National Economic Council, and President of Harvard University, Lawrence Summers has warned against any implementation of a $2,000 COVID relief check.

Writing in business publication Bloomberg, the 66-year-old economist insisted that the proposal, which has drawn support from figures as diverse as Bernie Sanders and Donald Trump, was a “big mistake,” as it would likely “overheat the economy.”

Most of the restaurants in my area were slow to reopen because the owners found it difficult to coax employees back who were making more in unemployment.

Low production and a lot of cash in the economy equals inflation, and always will. Normally there is a natural control for inflation where a reduction in labor force leads to decreased spending which offsets scarcity inflation... but when you pay people not to produce you essentially douse national inflation with accelerant and throw a match on it.

 

[jmotivator]

November looks like it's going to suck more and more for the Democrats....

It's certainly going to put a damper on their COVID fear mongering strategy.

 

[Roadvirus]

It's certainly going to put a damper on their COVID fear mongering strategy.

And their Abortion fear mongering

 

[jmotivator]

And their Abortion fear mongering

I think they will stick with that since it's a clear ideological split that has little to do with the economy. The less they have to talk about the economy the better, and the trans bullshit doesn't play well with their minority base, or a significant percentage of Democrat women.

 

[The Work Outing]

The fed is wasting their time and actually making things worse. This inflation is NOT consumer driven...it's supply driven. It simply costs more for producers to get their products and services to market. This increase is caused by the Globalists attacks on the energy system.

We won't see inflation drop until the Biden Democrat administration is removed. That won't happen until the 2024 election. Sorry, but we are in for a rough time for the next 2 1/2 years.

Wrong.
It is NOT energy driven (though that is not helping).

So many of you people are fixated on oil.
Present, world oil production is higher now than it was in September, 2019.

International - U.S. Energy Information Administration (EIA)

www.eia.gov

World Crude Oil Production Trends | YCharts

In depth view into World Crude Oil Production including historical data from 1973 to 2023, charts and stats.

ycharts.com

Inflation today is NOT driven primarily by energy.
It is primarily debt driven.
Not maybe...100% for certain.

Assets: Total Assets: Total Assets (Less Eliminations from Consolidation): Wednesday Level

View the total value of the assets of all Federal Reserve Banks as reported in the weekly balance sheet.

fred.stlouisfed.org

I will not waste one more second (for now) debating it.
If you people cannot see the obvious (and you are far from alone amongst the masses in your theory on this)?
That is your problem.
Not mine.

 

[JohnfrmClevelan]

The fed is wasting their time and actually making things worse. This inflation is NOT consumer driven...it's supply driven. It simply costs more for producers to get their products and services to market. This increase is caused by the Globalists attacks on the energy system.

We won't see inflation drop until the Biden Democrat administration is removed. That won't happen until the 2024 election. Sorry, but we are in for a rough time for the next 2 1/2 years.

Well, there are some conflicting signs right now that point in other directions.

Big companies, especially oil companies, are making record profits in this "bad" economy. Oil prices aren't all that high anymore, yet gas prices remain high. You can't blame that on low-level employees making a few extra bucks. Oil companies are just greedy, and like their Republican cohorts, they want prices to remain high whenever there is a Dem president. That's just their strategy; Republicans stay in power, and Big Business continues to rake in excessive profits due to Republican policies. It's been a chummy relationship ever since Reagan killed the last vestige of antitrust action by the government. Big Business continues to consolidate (not good for prices, btw), and small businesses (and the competition they used to provide) are killed in the process.

This is an interesting article on the subject: https://www.msn.com/en-us/news/poli...sedgntp&cvid=194af13aa59b48b5971e65f78798258e