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Started By
Message
Stubborn Inflation
Posted on 1/10/25 at 2:20 pm
Posted on 1/10/25 at 2:20 pm
Unfortunately inflation is still a problem. Interest rates remain high along with prices. Will be interesting as we move through the first quarter of 2025, especially movements in the stock market. Could be very bumpy.
2
Posted on 1/10/25 at 2:33 pm to MoeJoeGumbo
quote:What does this mean?
along with prices.
Posted on 1/10/25 at 2:39 pm to Big Scrub TX
It means retail. You buy goods/services right? Then you should know.
Posted on 1/10/25 at 4:47 pm to MoeJoeGumbo
quote:You said "prices remain high". I still don't understand your point. We've had inflation. That inflation has us at a new price level. That new level is essentially the lowest you will ever see again in your lifetime. That's how inflation works. What do you mean prices are "still high"? That's a statement that has been true of retail prices virtually every single day you've been alive.
It means retail. You buy goods/services right? Then you should know.
Posted on 1/10/25 at 4:54 pm to Big Scrub TX
quote:
You said "prices remain high". I still don't understand your point. We've had inflation. That inflation has us at a new price level. That new level is essentially the lowest you will ever see again in your lifetime. That's how inflation works. What do you mean prices are "still high"? That's a statement that has been true of retail prices virtually every single day you've been alive.
Lol...can't help you since it appears you have been sleeping since early 2022. You know exactly what I mean.
Posted on 1/10/25 at 5:04 pm to MoeJoeGumbo
And exactly how would prices fall? Are wages going to suddenly decrease?
Posted on 1/10/25 at 5:19 pm to MoeJoeGumbo
quote:I don't think YOU even know what you mean. You don't appear to understand the fundamentals of inflation.
Lol...can't help you since it appears you have been sleeping since early 2022. You know exactly what I mean.
If you are unable to answer simple questions posed for you, perhaps you should delete the thread.
Posted on 1/10/25 at 5:39 pm to Big Scrub TX
quote:
If you are unable to answer simple questions posed for you, perhaps you should delete the thread.
Can we just delete/ignore you? Let's start now.
Posted on 1/10/25 at 5:58 pm to MoeJoeGumbo
quote:
MoeJoeGumbo
Member since Jan 2025
15 posts
quote:Nah. Get your bot arse out of here.
Can we just delete/ignore you? Let's start now.
Posted on 1/10/25 at 6:39 pm to MoeJoeGumbo
quote:
MoeJoeGumbo
Another politard alter with zero understanding
Posted on 1/10/25 at 7:06 pm to Big Scrub TX
quote:
If you are unable to answer simple questions posed for you, perhaps you should delete the thread.
Perhaps Big Scrub skipped economics class. Gee whiz.
Posted on 1/10/25 at 7:10 pm to MoeJoeGumbo
Baw you’re not gonna see “prices go down” unless we experience a major recession.
Otherwise, prices have been set by the rise in inflation, that’s how it works.
Otherwise, prices have been set by the rise in inflation, that’s how it works.
Posted on 1/10/25 at 7:20 pm to Shepherd88
Never said they were going down. Wow! Lol!!
Posted on 1/11/25 at 10:04 am to MoeJoeGumbo
quote:
Interest rates remain high along with prices.
Any borrower (consumer or business) has been borrowing at higher rates. In the case of businesses, those higher rates are passed through to the consumer.
quote:
Unfortunately inflation is still a problem.
It's going to continue to be. You can't frick over the economy with massive liquidity injections and supply chain crunches, then expect to get out of it with some short-ish term inflation.
We're going to have a recession either way, Powell's dream of a "soft landing" has always been just that: a dream.
Leaving rates higher means job loss picks up speed. Since COVID all GDP growth has been either largely or wholly done on the back of debt creation (debt created and only serviced, not paid off). Strong job loss in such an environment would crush the economy as consumer defaults would begin to rise, meaning more and more consumers would lose access to credit (which means the real fuel for GDP growth would no longer be available) and thus limit their ability to purchase even necessities (much less luxury items).
Continuing to lower rates means pushing up inflation. This puts demand on businesses to raise wages as we saw in the aftermath of COVID (but to a lesser extent). That's a cycle of increase-to-fund-increase-to-fund-increase etc until inflation eventually tames. The problem here is that inflation won't really be tamed again until we remove from the economy the excess liquidity created during COVID (and that removal slows as rates lower).
Powell has tested the waters with cuts over the Fall and we see the results in inflation rising once again and job growth still relying heavily on government spending (government jobs and healthcare, primarily outpatient jobs -which is why Medicare spending for 2023 was a historic high-, are the top two gainers over the last couple of years). Now he's signaling a desire to hold rates for a while.
So we have choices between large pain for a short-ish amount of time with a potentially strong rebound, a medium amount of pain for a longer period with a potentially weak rebound once done or fluctuating pain with over an indeterminate period of time with an indeterminate rebound level.
Powell has chosen the third option under the belief that riding the fence will allow for the best balance between positives and negatives. But it still means longer-term inflation at higher rates than consumers would like.
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