aTmAg said:

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Captain Positivity said:

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BREAKING Government Report:

Inflation up 7% year over year

Highest since 1982

(interfering political stat - in 1982 Biden had already been in the Senate a decade)

— Sean Spicer (@seanspicer) January 12, 2022

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BTW, by 1982, Volker had already raised interest to over 19% to fight inflation. Our Fed still has them at 0% and are doing QE on top. It's like driving a car over a cliff and our Fed has not only kept it's food off the brake, it's pushing the gas to the floor.

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I believe the timing of the rate hikes is going to be the fed's biggest mistake, not the level.

We are never going back to Volker level rates, nor should we. But tapering should have been done at the end of Q3 21 and hikes beginning Jan1. There going to be 6 months late and as a result most likely overshoot the target.

"Across the country, dairy manufacturers are struggling to run with the surge of coronavirus cases, squeezing already constrained labor," Matt Gould, editor of The Dairy Market Analyst, said in a research note.


Just reading some junk about increase in prices for various things. I'll tell You this: if that person ever set foot on a dairy farm I'd be damned, and if a dairy farm ever actually shut down for significant periods of time without government interference id be dammed.

Inflation running at 7%

But don’t overlook this: “Real average hourly earnings decreased 2.4 percent, seasonally adjusted, from December 2020 to December 2021.”

Prices are up, & worker pay is not keeping pace https://t.co/CEsx9aiueU

— Christopher Weihs (@chrisweihs_) January 12, 2022

96ags said:

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aTmAg said:

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Captain Positivity said:

---

BREAKING Government Report:

Inflation up 7% year over year

Highest since 1982

(interfering political stat - in 1982 Biden had already been in the Senate a decade)

— Sean Spicer (@seanspicer) January 12, 2022

---

BTW, by 1982, Volker had already raised interest to over 19% to fight inflation. Our Fed still has them at 0% and are doing QE on top. It's like driving a car over a cliff and our Fed has not only kept it's food off the brake, it's pushing the gas to the floor.

---

I believe the timing of the rate hikes is going to be the fed's biggest mistake, not the level.

We are never going back to Volker level rates, nor should we. But tapering should have been done at the end of Q3 21 and hikes beginning Jan1. There going to be 6 months late and as a result most likely overshoot the target.

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Overshoot in what way? You think they are going to create deflation?

There is a reason Volker went so high. To lower inflation, the rates have to be above inflation. If inflation is 10% then they gotta go higher than that. And if they only go to 11% then it will take forever to bring it under control. So Volker went ~20%, and it was over within a couple years.

aTmAg said:

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96ags said:

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aTmAg said:

---

Captain Positivity said:

---

BREAKING Government Report:

Inflation up 7% year over year

Highest since 1982

(interfering political stat - in 1982 Biden had already been in the Senate a decade)

— Sean Spicer (@seanspicer) January 12, 2022

---

BTW, by 1982, Volker had already raised interest to over 19% to fight inflation. Our Fed still has them at 0% and are doing QE on top. It's like driving a car over a cliff and our Fed has not only kept it's food off the brake, it's pushing the gas to the floor.

---

I believe the timing of the rate hikes is going to be the fed's biggest mistake, not the level.

We are never going back to Volker level rates, nor should we. But tapering should have been done at the end of Q3 21 and hikes beginning Jan1. There going to be 6 months late and as a result most likely overshoot the target.

---

Overshoot in what way? You think they are going to create deflation?

There is a reason Volker went so high. To lower inflation, the rates have to be above inflation. If inflation is 10% then they gotta go higher than that. And if they only go to 11% then it will take forever to bring it under control. So Volker went ~20%, and it was over within a couple years.

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I don't think we can unwind this quickly, and yes, I think deflation is a real concern. We are due a market correction which will aid in cooling things and that's going to happen 1st half of this year most likely.

The modern fed simply doesn't have the option to do what what Volker did in my opinion. We can't even afford to service the US debt at 1/2 of where rates were then.

Powell has screwed up big time already, but sadly he could make it a lot worse.

Volker purposefully induced a recession to get inflation under control. He ripped the bandaid.

NOBODY has the balls to do this now, and really, with the welfare gravy train we have, it's political suicide to try and cut spending.

We are properly ****ed.

twk said:

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Owlagdad said:

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So when is my interest on CDs going up and my pass book savings account I leave in bank for them to use?
Inflation is supposed to help those with money in the bank, yet hurt borrowers- something those in charge won't tell the suffering masses.

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You've got it backwards. Inflation penalizes depositors (the value of their deposit shrinks and interest on their deposits never keeps pace with inflation) and rewards borrowers (the amount they owe stays the same, but the dollars they pay it with become "cheaper," at least for those with fixed rate loans the predate the onset of inflations--borrowing during an inflationary period, on the other hand, can be ruinous)..

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That is what I meant. If you just leave cash in bank, during inflation, banks should raise what they pay you, unless you invest elsewhere. Of course if you borrow during this time, you are going to get screwed. I bought an 82 GMC pickup at 14%, and thought I was doing well. Banks were paying 3-6% on deposits rather than .009%.

ac04 said:

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imagine they chaos if they printed the actual number instead of this manipulated BS.

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Yep. You know it's got to be higher.

"You see, if we keep adding stones to the bottom of the pyramid, we can still make the pyramid higher! Who cares about the energy required to lift the entire pyramid higher to place more stones at the bottom, it must be done because the central planners said so."

Sure thing, master. Said the enslaved people.

"Let's break out this b****", said the free people.

96ags said:

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aTmAg said:

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96ags said:

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aTmAg said:

---

Captain Positivity said:

---

BREAKING Government Report:

Inflation up 7% year over year

Highest since 1982

(interfering political stat - in 1982 Biden had already been in the Senate a decade)

— Sean Spicer (@seanspicer) January 12, 2022

---

BTW, by 1982, Volker had already raised interest to over 19% to fight inflation. Our Fed still has them at 0% and are doing QE on top. It's like driving a car over a cliff and our Fed has not only kept it's food off the brake, it's pushing the gas to the floor.

---

I believe the timing of the rate hikes is going to be the fed's biggest mistake, not the level.

We are never going back to Volker level rates, nor should we. But tapering should have been done at the end of Q3 21 and hikes beginning Jan1. There going to be 6 months late and as a result most likely overshoot the target.

---

Overshoot in what way? You think they are going to create deflation?

There is a reason Volker went so high. To lower inflation, the rates have to be above inflation. If inflation is 10% then they gotta go higher than that. And if they only go to 11% then it will take forever to bring it under control. So Volker went ~20%, and it was over within a couple years.

---

I don't think we can unwind this quickly, and yes, I think deflation is a real concern. We are due a market correction which will aid in cooling things and that's going to happen 1st half of this year most likely.

The modern fed simply doesn't have the option to do what what Volker did in my opinion. We can't even afford to service the US debt at 1/2 of where rates were then.

Powell has screwed up big time already, but sadly he could make it a lot worse.

---

Deflation should be the last of your concerns. That is the easiest "problem" in the world to solve if you have a fiat currency. And we are never going to overshoot if the interest rate is below inflation. And I agree that the government cannot afford to service the debt at those interest rates, but that's what happens when government gets into so much debt. And this is not just Powell. This is on every Fed chair after Volker. Including Greenspan. There is no magic trick to get out of the consequences. We either have runaway inflation for a damn long time, or we take a recession up the ass like in the early 80s. At least the latter resulted in the greatest post war boom in US history. So I know which one I prefer.

And the new interest rates would not effect existing debt, but of the debt we roll over. Perhaps this is finnaly the thing that gets government spending under control? The rest of us don't borrow at 20% then why should the USG? Maybe they have to pay for stuff with actual revenue for a change?

aTmAg said:

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96ags said:

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aTmAg said:

---

96ags said:

---

aTmAg said:

---

Captain Positivity said:

---

BREAKING Government Report:

Inflation up 7% year over year

Highest since 1982

(interfering political stat - in 1982 Biden had already been in the Senate a decade)

— Sean Spicer (@seanspicer) January 12, 2022

---

BTW, by 1982, Volker had already raised interest to over 19% to fight inflation. Our Fed still has them at 0% and are doing QE on top. It's like driving a car over a cliff and our Fed has not only kept it's food off the brake, it's pushing the gas to the floor.

---

I believe the timing of the rate hikes is going to be the fed's biggest mistake, not the level.

We are never going back to Volker level rates, nor should we. But tapering should have been done at the end of Q3 21 and hikes beginning Jan1. There going to be 6 months late and as a result most likely overshoot the target.

---

Overshoot in what way? You think they are going to create deflation?

There is a reason Volker went so high. To lower inflation, the rates have to be above inflation. If inflation is 10% then they gotta go higher than that. And if they only go to 11% then it will take forever to bring it under control. So Volker went ~20%, and it was over within a couple years.

---

I don't think we can unwind this quickly, and yes, I think deflation is a real concern. We are due a market correction which will aid in cooling things and that's going to happen 1st half of this year most likely.

The modern fed simply doesn't have the option to do what what Volker did in my opinion. We can't even afford to service the US debt at 1/2 of where rates were then.

Powell has screwed up big time already, but sadly he could make it a lot worse.

---

Deflation should be the last of your concerns. That is the easiest "problem" in the world to solve if you have a fiat currency. And we are never going to overshoot if the interest rate is below inflation. And I agree that the government cannot afford to service the debt at those interest rates, but that's what happens when government gets into so much debt. And this is not just Powell. This is on every Fed chair after Volker. Including Greenspan. There is no magic trick to get out of the consequences. We either have runaway inflation for a damn long time, or we take a recession up the ass like in the early 80s. At least the latter resulted in the greatest post war boom in US history. So I know which one I prefer.

And the new interest rates would not effect existing debt, but of the debt we roll over. Perhaps this is finnaly the thing that gets government spending under control? The rest of us don't borrow at 20% then why should the USG? Maybe they have to pay for stuff with actual revenue for a change?

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Wouldn't that be nice.

So this good news for the economy? Right?