101–110 of 118 posts
That the government, elected by the people, is actively - and pretty openly- diminishing the purchasing power of working people it was elected by - is just breathtaking.
And yes, the purchasing power will diminish, because price inflation will not be matched by income inflation, due to a lot of slack in the labor market.
Earlier quoted context omitted.
... and healthcare, which has been rising 13%-15% every year
Inflation numbers don’t include healthcare?!
https://www.bls.gov/cpi/factsheets/medical-care.htm
Of course, these are averages. If something catastrophic happens to you, it can easily consume your entire budget.
For a community that tries to pride itself on good discussion I can't help but notice how awful the HN discourse is for anything related to economic policy. You have a thread where the original source is a twitter post talking about higher than average inflation and in that thread you have a whole bunch of people talking about hyperinflation. These are very different things. But, first let's talk about monetary polic…
The thread culminated in a tweet that directly suggested our past decade is similar to Germany's gestation period prior to hyperinflation, and that we are on a similar course. The discussion of hyperinflation is absolutely on topic.
0 - https://recision.files.wordpress.com/2010/12/jens-parsson-dy... (linked by Burry within the source twitter thread)
Inflation is the most cruel, invisible tax - cruel, because it is regressive, and so affects the poor much more than the rich. That the government, elected by the people, is actively - and pretty openly- diminishing the purchasing power of working people it was elected by - is just breathtaking. And yes, the purchasing power will diminish, because price inflation will not be matched by income inflation, due to a lot…
For the decade following 2008, the last time there was a big warning about how stimulus spending would lead to Weimar-style hyper-inflation, our inflation rate has averaged 1.47%. The Fed is trying to raise that to 2%, worried that it's too low!
Inflation is already happening, that is why housing and equities are so high. It isn’t happening equally amongst the basket of commodities that one can purchase, but it is happening in aggregate. This is actually a feature of our currency system. If inflation didn’t happen, everyone would hold back spending until the next year; this is what caused the great depression.
>Inflation is already happening, that is why housing and equities are so high. The USA hasnt even touched 2% inflation since 2019. Let alone any hyprinflation concerns yet. In the context of: https://tradingeconomics.com/united-states/central-bank-bala... and https://tradingeconomics.com/united-states/money-supply-m0 Inflation should be sky high. You cant inject that much money into the economy and not expect inflati…
So why is there now suddenly a huge risk of inflation, even hyper-inflation? What has changed? The current proposal is for $1.9T stimulus bill, less than half of last year's bills, but now we're at risk of inflation running out of control overnight?
I don't get it.
20% of all dollars were created in 2020. The only thing preventing that from translating into the broader price level is that money velocity collapsed due to the Covid shutdowns. Instead most of that has channeled into financial and property asset prices. Once velocity increases, as is the plan if you assume 2021 is the year we "recover" from Covid restrictions, the Fed will have a choice between inflation and deflat…
I think war usually follows... Someone who knows monetary history better please comment.
Earlier quoted context omitted.
I listened to what Schiff had to say in 2008, but the same talking point of how he was right became tiring quick. Eventually years later I realized he basically always has the same forecast of impending doom, that just happened to be correct once. So he's a bit of a broken clock is correct twice a day person.
Economists have correctly predicted 8 of the last 4 rrcessions.
> To prove that Wall Street is an early omen of movements still to come in GNP, commentators quote economic studies alleging that market downturns predicted four out of the last five recessions. That is an understatement. Wall Street indexes predicted nine out of the last five recessions! And its mistakes were beauties.[20]
* https://en.wikipedia.org/wiki/Paul_Samuelson#Aphorisms_and_q...
Paul Samuelson was one of the most important economists in the 20C, and literally wrote the textbook:
Inflation is already happening, that is why housing and equities are so high. It isn’t happening equally amongst the basket of commodities that one can purchase, but it is happening in aggregate. This is actually a feature of our currency system. If inflation didn’t happen, everyone would hold back spending until the next year; this is what caused the great depression.
"Inflation" is the cost of a basket of goods and services. Is you wish to talk about rising asset prices please do not use "inflation" as it just confuses the issue, especially since we already have a term for that: