nu awlins ag said:

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This post is aging like fine wine sold at Costco.

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Trek Strategy said:

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nu awlins ag said:

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This post is aging like fine wine sold at Costco.

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Ahem…. Thou shall not talk crap about wine from Costco

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• The food at home index rose 10.8 percent over the last 12 months, the largest 12-month increase since the period ending November 1980.


• The index for meats, poultry, fish, and eggs increased 14.3 percent over the last year, the largest 12-month increase since the period ending May 1979


• The index for airline fares continued to rise sharply, increasing 18.6 percent in April, the largest 1 month increase since the inception of the series in 1963.

Señor Chang said:

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Oldag2020 said:

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Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.

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Has the OP been nominated for the Nobel Prize in Economics yet? Can we make that happen?

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Shelter is the single biggest component of CPI (33% of the Index) and is still being wildly understated (@ +5.1% YoY) with rents up 16% over the last year and home prices up 20%. The true inflation rate is much higher than 8.3%. pic.twitter.com/Gk0u0YSllg

— Charlie Bilello (@charliebilello) May 11, 2022

Quote:

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Prices at the wholesale level accelerated further in April, part of a broader inflation problem persisting through the U.S. economy, the Bureau of Labor Statistics reported Thursday.

The producer price index, which tracks how much manufacturers get for their products at their initial sale, rose 0.5% on the month and 11% from a year ago. Economists surveyed by Dow Jones had been looking for a monthly increase of 0.5%.

Excluding food, energy and trade services, core PPI rose 0.6% in April and 6.9% from a year ago.

Both monthly increases were exactly in line with Dow Jones estimates.

Those numbers came the day after the BLS reported that consumer prices for goods and services in the marketplace rose 8.3% from a year ago, down from 8.5% in March but still indicative of the worst inflation the U.S. has seen since the early 1980s.

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Redstone said:

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Let us ponder: why are the 2 inflation threads, identical in original content, easily Top 10 Fail in the history of TexAgs?

BECAUSE NON-OLIGARCH PEOPLE ARE HURTING
BECAUSE THIS WAS EXTREMELY PREDICTABLE
BECAUSE THIS WAS AVOIDABLE
BECAUSE THIS SHOULD NEVER HAPPEN AGAIN

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BuddysBud said:

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Oldag2020 said:

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Demand is temporarily outpacing our production(supply). Due to covid shut downs and supply chain disruptions. Ex. Lumber prices were inflated, now they are correcting themselves.

Once our supply chains are back up to full capacity, the added demand created by the stimulus will not cause long lasting inflation.

Our productive capacity is so high, in fact, I believe our biggest fear should be deflation, not inflation. Our productivity growth is not disappearing any time soon. The inputs to production are 1. Technological advancements and 2. Increase in labor force. Our computing power doubles every 18 months. Clearly this growth will not disappear.

It's no accident that we have continued to spend more and more throughout the last several decades with little to zero long term negative consequences.

In fact, the fed has struggled the last decade to maintain their inflation level goal of 2%. This even Despite massive spending in 2008 and artificially low interest rates.


Another reason we should not be concerned by the massive spending is that $1 in government spending = greater than $1 in gdp growth.
Gdp growth = 1/ the propensity to save
The propensity to save is currently ~ 20%
Therefore every dollar spent today grows our gdp tomorrow by $5

This $5 of gdp growth then increases tax revenue by $5.
This increase in tax revenue is used to service the debt.

Basically, we can spend as much as we want with little to zero negative consequences. Long term inflation is not on the way.

Be sure to allocate portfolios accordingly.

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This reads like a perpetual motion machine.
Put a big fan in front of a windmill to blow on the blades to generate electricity that powers the fan. The fan blowing the windmill will never stop because the windmill keeps turning by the fan blowing on it. Easy.

Look, an endless supply of energy.

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Nitro Power said:

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As OP said, we can spend without consequence. It definitely will not cause long term inflation. Good grief this kid??? has a lot of life lessons in front of him (or her).

Absolutely terrible post. Wish the poster would come back and own it.

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