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Started By
Message
re: Inflation "cools" to 2.9%
Posted on 8/14/24 at 1:50 pm to ragincajun03
Posted on 8/14/24 at 1:50 pm to ragincajun03
Misinformation by the people in charge?
Who expected that?
Who expected that?
0
Posted on 8/14/24 at 2:54 pm to canyon
quote:
But see it really doesn’t matter if inflation “drops “ to 0. The price of every item you purchase will never come down again. The economy rolls on and normal people fight to keep up.
Well that’s true but the idea is to get inflation low enough that wage growth catches up
Posted on 8/14/24 at 3:44 pm to BlackAdam
quote:
Basic economic principles. Inflation is always and everywhere a monetary phenomenon. Years of rates at or near 0 coupled with 80 years of money supply being printed between March of 2020 and February of 2021 resulted in the inflation we have seen for the last 4 years. A looser money supply via lower rates will mean more dollars and more inflation.
Let me first say that I agree with your overall point; however, the details are off.
quote:
Basic economic principles. Inflation is always and everywhere a monetary phenomenon.
If by this you mean money supply, sure. If you mean monetary policy, no. Anything monetary policy can do, fiscal policy can also do. They just do it by taking a different path to get there.
In a nutshell, there are two things which have to be accomplished: inflation control and debt stabilization. BOTH Monetary and Fiscal policy can do either/or, but they have to work together with one dominant and the other passive.
Example: Monetary policy controls inflation via rates while fiscal policy stabilizes debt by raising primary surpluses to cover it. (Monetary Dominance)
Or…
Fiscal policy sets primary surpluses without respect to debt while monetary policy stabilizes debt by keeping rates low enough so that interest payments don’t make the debt grow too fast. (Fiscal Dominance)
quote:
Years of rates at or near 0 coupled with 80 years of money supply being printed between March of 2020 and February of 2021 resulted in the inflation we have seen for the last 4 years. A looser money supply via lower rates will mean more dollars and more inflation.
Sort of. Yes, “printing money” is a monetary/Fed role. But fiscal policy can drive deficit spending, which the Fed must stabilize via lower rates on all the new debt/money. Rates have been low, not as an inflationary control, but because monetary policy has been in a passive role to Fiscal Dominance for awhile.
We handed out something like $5T in “emergency” money, and a LOT for other bullshite. Fiscal Dominance caused inflation.
The Fed raising rates to combat it is Monetary Dominant-esque, but the Fiscal side shows no interest in going passive by raising a surplus to cover the rising/higher interest.
Here’s the problem: both can’t be simultaneously dominant for very long, and the politics of the Fiscal side (they ain’t cutting spending and raising taxes) will force the Fed to go passive with Monetary policy, ignoring inflation in favor of keeping the interest manageable via rates.
Monetary policy can only be dominant if the Fiscal side allows it. The only way they MIGHT be able to overpower Fiscal policy is by Volcker’ing it and breaking everything, which nobody has the balls to do.
Posted on 8/14/24 at 3:52 pm to udtiger
They also said illegal entries slowed to 56k last month.
Just neglected to mention the other 45k being tracked by other means
Just neglected to mention the other 45k being tracked by other means
Posted on 8/15/24 at 10:28 am to Longhorn Actual
US Dollar ripping higher and 2yr UST pushed off a cliff is NOT what happens when multiple rate cuts are priced into stocks
Strong retail sales , record high home prices , record high stox = no reason to reduce rates to stimulate the economy
Strong retail sales , record high home prices , record high stox = no reason to reduce rates to stimulate the economy
Posted on 8/15/24 at 10:37 am to udtiger
quote:
Inflation "cools" to 2.9%
Wait a week or two before they quietly have to adjust it to 4% or higher.
Posted on 8/15/24 at 11:50 am to BugAC
quote:
Not a single normal person, who buys groceries, gas, pays utility bills, buys clothes, etc... believes that inflation has "cooled" nor that it is anywhere close to 2.9%.
Real world inflation, is 40-50%.
You fricking idiot. Low information voter.
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