Can someone explain to me why we have such high inflation now?

[Anonymous]

[Anonymous]

Anonymous wrote:

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Just wait for this chart to get updated for 2022

[Anonymous]

we have 9% inflation - 3% is from supply chain, 2% is from energy shock (in Europe this is the majority), 4% stimulus. Everybody happy?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Just wait for this chart to get updated for 2022

And it'll show that M2 is contracting and inflation has risen. It still won't say what you want it to say, though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

What a clown you are. Try posting actual up to date information. SMDH.

https://www.clevelandfed.org/en/our-research/indicators-and-data/median-cpi.aspx

[Anonymous]

Anonymous wrote:we have 9% inflation - 3% is from supply chain, 2% is from energy shock (in Europe this is the majority), 4% stimulus. Everybody happy?

+1

[Anonymous]

Anonymous wrote:we have 9% inflation - 3% is from supply chain, 2% is from energy shock (in Europe this is the majority), 4% stimulus. Everybody happy?

+1. Also the insanely angry poster on this thread needs to seriously calm down.

[Anonymous]

I take some comfort in rising interest rates in that it gives the Fed bullets to deal with the next downturn. How would the government juice the economy if interest rates are close to zero?

[Anonymous]

I agree with a lot of what's already been said.

Some of it IS supply chain. Meaning that we paid people money to stay at home and produce nothing. More money chasing less goods = inflation.

A lot of that money went into the stock market. I had 60% nominal gains (not annualized) in my stock portfolio with a conservative allocation from jan 1 2017- jan 1 2022. That's not normal.

Housing gains are not normal.

Europe's inflation is different- most of it began after the Ukraine war situation due to associated problems with sourcing energy.

[Anonymous]

OMG does no one follow Robert Reich?

A huge problem is that companies are raising rates on everything for consumers, NOT because their supplies cost more, but because they are making record profits, and are doing stock buybacks, lining the pockets of their shareholders and CEOs.

These are the same companies that had $19 TRILLION in tax cuts during the Trump administration that were supposed to trickle down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:“ Understanding the CARES Act
At $2.2 trillion, the CARES Act stands as the largest financial rescue package in U.S. history. The 2009 Recovery Act was $831 billion, the Consolidated Appropriations Act (CAA) was $910 billion, and the American Rescue Plan Act (ARPA) comes closest at $1.9 trillion.”

+1 add onto that all the money that some people actually saved during the shutdown. For many, like me, had no commuting/office costs, childcare costs, gas, kids activities, etc. I didn’t qualify for any cares act cash, but I saved hundreds a month by everything shutting down. Once everything opened, we entered the world with a lot of disposable savings looking to buy vacations and things we’ve put off, which for me is furniture and a new car

This describes us too, but I’m still not going to pay $55k for a car that was $40k 2 years ago. Why are people so willing to pay these exorbitant prices, just because they have a little extra money?

[Anonymous]

Anonymous wrote:Amazing how Americans don't understand basic econ. You thought all those stimmi checks, PPP loans, and other free give aways had no consequences? The US gov have away multiple trillion dollar+ stimuli. The Fed juiced the economy with zero percent interest rates, doubled the supply of money in only 2 years, and expanded the balance sheet to $9 trillion dollars (it was only $800B around 2008). When you have that much cash and credit liquidity in the system you get persistent inflation. How in the hell do American consumers STILL have a voracious appetite for vacations, cars, electronics, dining out, etc. even though prices are skyrocketing? It's because people have too much money. The stamina for price hikes that Americans have is absurd. It means inflation is sticky and very difficult to dislodge.


The latest CPI report tanked the markets. It was very bad. It clearly shows inflation is being driven by excessive demand as well as an overly tight labor market and not so much due to supply constraints. Yes, the labor market is too hot. Unemployment also needs to go back up to reduce the strangle the labor market has on inflation.

The fed is now raising interest rates and quantitative tightening to remove money and liquidity from the economy. Costs to borrow are skyrocketing. It will bring down asset values, remove.miney from the system, and hopefully cause unemployment to go up. The net result will hopefully be taming of this terrible inflation.

So, you are basically saying that having peasants have more money, assets, and control in the labor market is bad. I see. Too much money in the hands of regular people is bad, they feel too comfortable, start demanding things, spending, and don't want to work too hard or work at all. It's great that there is little wealth for the people and when they are outbidding each other for crappy wages en masse, right?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Amazing how Americans don't understand basic econ. You thought all those stimmi checks, PPP loans, and other free give aways had no consequences? The US gov have away multiple trillion dollar+ stimuli. The Fed juiced the economy with zero percent interest rates, doubled the supply of money in only 2 years, and expanded the balance sheet to $9 trillion dollars (it was only $800B around 2008). When you have that much cash and credit liquidity in the system you get persistent inflation. How in the hell do American consumers STILL have a voracious appetite for vacations, cars, electronics, dining out, etc. even though prices are skyrocketing? It's because people have too much money. The stamina for price hikes that Americans have is absurd. It means inflation is sticky and very difficult to dislodge.

The latest CPI report tanked the markets. It was very bad. It clearly shows inflation is being driven by excessive demand as well as an overly tight labor market and not so much due to supply constraints. Yes, the labor market is too hot. Unemployment also needs to go back up to reduce the strangle the labor market has on inflation.

The fed is now raising interest rates and quantitative tightening to remove money and liquidity from the economy. Costs to borrow are skyrocketing. It will bring down asset values, remove.miney from the system, and hopefully cause unemployment to go up. The net result will hopefully be taming of this terrible inflation.

Amazing how you don't understand this is a global phenomenon. It's not just the United States.

Also, FU with your "people need to suffer unemployment to solve the problem." I bet you're not volunteering to quit your job. We have a garbage social safety net in this country. I, for one, am willing to pay more for things if it means that more people have jobs.

You are the biggest imbecile on these forums. Newsflash moron: the labor market is unhealthy. In case you haven't noticed, real earnings for Americans are DECREASING because of inflation. Labor productivity is tanking, which is all helping to push inflation higher. The labor market needs to cool so a healthier equilibrium is set they helps to combat inflation and Americans are not getting negative earnigns growth because of inflation. You are dumb.

NP. For those to continue enjoying the buying power of their earnings instead of seeing them deteriorate many more have to lose jobs and earn nothing, lose homes for housing prices to tank for those like you who will enjoy lucrative employment and get to keep your home? T I get it. here is labor shortage as many people just don't want to work anymore or want better hours, wages, etc. Maybe the problem isn't really inflation, but the fact that we had crappy work culture in this country to start with? Other countries are experimenting with a 4 day workweek, while we are dialing up the pressure to have everyone return back to the rat race of full time office work and commutes (a hard sell given most remote workers were able to do their jobs just fine in the last 2 years). Maybe we need some reforms in the workplace, increase and not decrease flexibility, create more part time jobs to attract those who exited job market back in?

[Anonymous]

Anonymous wrote:OMG does no one follow Robert Reich?

A huge problem is that companies are raising rates on everything for consumers, NOT because their supplies cost more, but because they are making record profits, and are doing stock buybacks, lining the pockets of their shareholders and CEOs.

These are the same companies that had $19 TRILLION in tax cuts during the Trump administration that were supposed to trickle down.

I believe you. This is another period of great wealth transfer we are entering now on the coattails of the pandemic upheavals.