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Originally posted by WuDrWu
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Not an insurrection IMO, but a coup.Livin the dream -
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Truly scary. Hilariously scary. This is our President folks. 81 million idiots voted for this clown.Originally posted by pinstripers View PostComment
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According to Charlie Gasparino (Fox Business Economist), the Biden Administration will no longer say the word transitory inflation when describing the inflation that is going on because they no longer think that inflation will be short lived.
To the Shockernet economists:
Why has this inflation happened after years of almost zero inflation?
We have had very low interest rates for years, and we still have them.
Both Obama, and Trump weren’t afraid of raising the debt ceiling, although minimal to what Biden wants to do now(4-6 Trillion Dollars), and still want to do.
Wall Street Stocks are still going up.
It must be something else. What is it?Comment
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Economics are hard. I try to learn from those that I trust understand them, always trying to keep in mind that it’s called “economic theory” not “economic science”.Originally posted by Shockm View Post
My understanding is the following:
One way that the federal reserve keeps inflation down is by lowering interest rates. Rates were lowered and kept low, even in boom times, and they remain low. Since they’ve already cut them all the way down, there is no way to lower them further.
The reason we are inflating NOW vs any other time where the rates were low is because there is a shortage of labor and raw materials and the international supply chain is a mess! This is causing increased costs in goods and services as corporations are willing to pay more to fill their quotas and are passing that on to the consumer.
The money printing is probably not causing inflation at this time. Most of the printed money is stored in banks for lending or is sent over seas where our local economy isn’t seeing the effects of excess currency.
Definitely a tip of the iceberg view, and probably wrong.
Livin the dreamComment
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Inflation generally arises from an increase in costs to produce goods or increases in demand for goods and services. What we have going on now is both of these issues combined. We had a year where essentially everything was put on hold so everyone is now trying to play catch up and this has created a dramatic surge in demand for goods and services nearly overnight. The flip side is also that costs for certain products and services has skyrocketed due to a limited supply due to a lack of manufacturing over the last year.
Certain aspects of what the government is currently doing are not helping. For example, keeping people out of the workforce by incentivizing them to stay home rather than work has created a massive shortage of workers. Insisting on increased minimum wages has also put a strain on manufacturers and providers of goods and services. Unnecessary lock downs and prolonged business shut downs created a pent up demand that is now overwhelming the market. The shut down of pipelines which has increased fuel costs which are essential to efficient production.
I could go on and on but I don't want to bore anyone...Comment
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A very simple definition of inflation: too many dollars chasing too few goods.Originally posted by wufan View Post
All that money handed out during the pandemic is causing a massive problem. I know people w/ small businesses who were sent $100K+ as "payroll protection" who never needed it, and never have to return it. I know kids who doubled their pay during the height of the pandemic due to loopholes in scheduling.
There are many ways the Fed can control inflation: changing the fed funds rate, the reserve requirement, open market operations, etc. But the BEST way to keep things under control is to not make the money printer go BRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRrrr.
The part where the printer turns off when it passes through the poor sections slays me every time lol...Comment
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Did you come up with that all on your own?Originally posted by ShockingButTrue View PostPeople who think they know everything are a great annoyance to those of us who do. -Isaac AsimovComment
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Kung Wu is fastPeople who think they know everything are a great annoyance to those of us who do. -Isaac AsimovComment
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Please stop posting this in the non-politics forums.Originally posted by ShockingButTrue View PostKung Wu say, man who read woman like book, prefer braille!Comment
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I am just reading headlines, but how does the CDC have any authority over rent and evictions? Such that they can place a moratoriam on evictions?"When life hands you lemons, make lemonade." Better have some sugar and water too, or else your lemonade will suck!Comment
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