Inflation - temporary or long term?

[Terrel L. Shields]

four rules for government response.
1. There is no problem
2. There may be a problem and we may do something about it.
3. There is a problem but there’s nothing we can do.
4. There was a problem and we should have done something about it but it’s too late now.

Guess what? The Fed punted once again at Jackson Hole... Not going to raise interest rates...not going to cut back asset purchases. Fed think "inflation" is transitory and will level off (not flatten just go from 5% to 4% or lower...not to our 2% goal) - Worthless. This puts a lot of pressure on the US dollar since other central bankers are raising their rates. If the dollar weakens oil prices go up to compensate for it.

 

[Zoe]

Get ready. There is only one big big big way to curb inflation. Interest rates are on the verge of rising. It will have an impact on real property values.

The next bottom could be worse than the 1920's and 1930's. I predict the worst depression ever. I just can't predict when. Watch interest rates. They have to rise soon to curb inflation.

 

[Zoe]

Here you go:

U.S. Inflation Rate by Year

The U.S. inflation rate by year is the percentage change in prices from one year to the next. It responds to business cycle phases and interest rates.

www.thebalance.com

 

[glenn walker]

Inflation will continue as our monetary policies are caught in a corner and to raise rates will kill the real estate and bond markets. Also the super wealthy get richer and richer like what we have seen in the last 18 months. They Buy now and pay back with low rate borrowed money or inflated dollars. The people who get killed are working class and people on fixed incomes. the poor will get poorer and the Billionaires will be worth a Zillion in a few years.

 

[Terrel L. Shields]

I predict the worst depression ever. I just can't predict when.

A given in the next hundred years...

 

[Zoe]

A given in the next hundred years...

Idk. It's at like 2% now which they say is healthy. It's been on the rise though. I don't know when the FED's will put the brakes on.

 

[Zoe]

Side note. Memphis has low grocery prices. I went to Birmingham and the Gulf Coast. Grocery prices are going out the roof especially in those areas. I am not lying. Grocery prices seemed like twice the price than Memphis on many items. My wife will tell you I know almost everybody in Kroger by name. LOL

Memphis grocery prices are jumping like crazy too.

 

[Fernando]

Inflation has contributed to rise of real estate prices.
Those who own properties benefit from the higher inflation and the rise in prices on other goods are tolerable.

 

[Terrel L. Shields]

Those who FLIP properties benefit from the higher inflation

Fixed it for you. Long term holders of RE see no benefit unless they sell as they only see taxes and insurance increase.

 

[TerryRohrer]

Inflation has contributed to rise of real estate prices.
Those who own properties benefit from the higher inflation and the rise in prices on other goods are tolerable.

"An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. The most common ad valorem taxes are property taxes levied on real estate. The Latin phrase ad valorem means "according to value." So all ad valorem taxes are based on the assessed value of the item being taxed."

Ad Valorem Tax: Definition and How It's Determined

An ad valorem tax is a tax derived from an assessed value, such as the value real estate or personal property, with a tax rate applied.

www.investopedia.com