141–150 of 190 posts
Inflation rate is just over 5% so that makes the composite rate -4% (or 0).
CPI is 5% not inflation. If you believe the average American's monthly expenses are only up 5% this year I've got some bridges to sell you
It's only been over 5% since July, not YTD: https://ycharts.com/indicators/us_inflation_rate
Earlier quoted context omitted.
We would not be "in the Cater [sic] Years" regardless. The lowest inflation reported in the late 70's was about 5%, with a peak at 15%. Last year's post-covid number was 5.4%. Your point seems mostly like demagoguery. I think the more interesting question is... is 5% actually bad? There's a real argument to be had here that rapid inflation reflects genuine improvements like rising wage levels and that it's worth payi…
"Remember that the "biggest losers" in inflationary economies are people who hold assets, not investors ..." The biggest losers among sophisticated, moneyed actors are indeed people who hold assets. But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices.
So, non-SS pensioners?
Not: Social Security recipients (it has an inflation-indexed COLA).
Not: public benefit recipients (this inflation is in part a product of temporary increases to aid at the lower end of the economic spectrum).
Not: low-end labor, where prices are being bid up. (And also, often a beneficiary of the previous point.)
Earlier quoted context omitted.
"Remember that the "biggest losers" in inflationary economies are people who hold assets, not investors ..." The biggest losers among sophisticated, moneyed actors are indeed people who hold assets. But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices.
> But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices. And therein lies one of the big pseudo-centrist points here. A mild reduction[1] in fixed-rate entitlement programs is coming down the pipe at some point regardless. This essentially gets the hard part of that political calculus out of the way "for free" (or at least in a cheaper way, since you can blame covid). [1] Cont…
No, if anything it hastens having to deal with the hard part, since SS benefits are wage indexed during employment and CPI-indexed in retirement, not fixed. Inflation drives up the nominal $ cost for current retirees, and, ceteris paribus, hastens trust fund depletion.
Earlier quoted context omitted.
"Remember that the "biggest losers" in inflationary economies are people who hold assets, not investors ..." The biggest losers among sophisticated, moneyed actors are indeed people who hold assets. But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices.
> But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices. So, non-SS pensioners? Not: Social Security recipients (it has an inflation-indexed COLA). Not: public benefit recipients (this inflation is in part a product of temporary increases to aid at the lower end of the economic spectrum). Not: low-end labor, where prices are being bid up. (And also, often a beneficiary of the…
If inflation were “good” then the US along with many countries the word over would cause it to happen —it’s easy to do.
Earlier quoted context omitted.
Right. The real question is : when will it abate? Is it transitory as they unflinchingly claimed or are we in the Carter Years?
When the real shock of COVID disruption abates. Which is .. not looking great at the moment.
(*) According to FDA/CDC and Israel, which are promoting the 3rd boosting shot in less than a year and anticipating the 4th.
Inflation is scaring me even more now.
The fixed rate is 0% as has been the case. The inflation yield rate has been bouncy. This doesn’t seem as good as the title and comments are making it seem unless things stay this way. Table near bottom of page shows the inflation rate over time. Edit: I agree this could be a sign of something long term Edit: recent history of rates -- Inflation rates -- Nov 2021 3.56% May 2021 1.77% Nov 2020 0.84% May 2020 0.53% Nov…
There is nothing in that formula that stops it from going below zero. You are making assumptions about the inputs.
Combining the two rates To get the actual rate of interest (sometimes referred to as the composite or earnings rate) we combine the fixed rate and the inflation rate, using the equation in the example below.
The combined rate will never be less than zero. However, the combined rate can be lower than the fixed rate. If the inflation rate is negative (because we have deflation, not inflation), it can offset some of the fixed rate. If the inflation rate is so negative that it would take away more than the fixed rate, we don't let that happen. We stop at zero.
Any real risk in dumping 10k in these and forgetting about it for a decade. Have these ever lost money ? 7% yield is outrageously good assuming you can't lose money. Then again US currency might be worthless if they default on these.
The bonds can go down in value lol EDIT: Never mind, these are savings bonds and can't be traded
Earlier quoted context omitted.
> But the biggest losers overall are those with fixed incomes dealing with rapidly rising prices. So, non-SS pensioners? Not: Social Security recipients (it has an inflation-indexed COLA). Not: public benefit recipients (this inflation is in part a product of temporary increases to aid at the lower end of the economic spectrum). Not: low-end labor, where prices are being bid up. (And also, often a beneficiary of the…
The government basket used to calculate inflation isn’t the same basket of goods pensioners buy from. If inflation were “good” then the US along with many countries the word over would cause it to happen —it’s easy to do.
Literally every single one of them that controls its own monetary policy (including the US) actively and deliberately does, so there's that.