Inflation - temporary or long term?

[Carnivore]

Part of Inflation can be attributed to massive shoplifting. Just got off reading NextDoor and members were lamenting about how bold shoplifters are now. Nextdoor Member, A Retail Employee of a major Building Supply stated that they are given orders not to even pursue shoplifters that are stealing shopping carts full of supplies
and tools.

Our Country is heading rapidly towards anarchy.

 

[Terrel L. Shields]

I think inflation is real and is not transitory but the rate of inflation doesn't have to be as extreme as the 70's.

Nixon started out fighting inflation and Ford had the "Win" program- whip inflation now- but in reality, inflation was not extraordinary until late in Carter's administration when oil prices shot up, shortages occurred, hoarding, etc etc. That's when prices really skyrocketed. It was late in Carters term that Volker took the bull by the horns and lowered the boom on the money supply, crunched credit, and it put us into recession but it worked. It sent inflation down after 10 years of nothing else working. Then the economy recovered on a sound basis. I had a commercial loan in 1980 that was 18% interest. If I hadn't been in the oil business, I wouldn't have been able to pay for it with cash flow. I paid the note off several months early but not before I had paid out $8,000 or so in interest on a $25,000 note. But as late as 1990, I tried to get a low interest loan through FSA and was turned down. Low interest was 6.5%. I ended up with a construction loan at 11¼% and that converted to a permanent loan of 10½% which I was able to lower a couple years later to 8.75%. When I paid the note off nigh 20 years ago it was still well over 5%.

Typically from decades past, land loans were 5-8%. 4% was considered about the least it would get. I don't see how this country can escape low interest rates for a long time except inflation explode like it did about 1979. And the cure is about as bad as the disease, at least for a while.

 

[Joe Flacco]

 

[Terrel L. Shields]

Irvin Fisher went bankrupt in the 20s...ditto Lord Keynes.
Yes you can impact inflation but when oil prices increase, it is outside the control of the government. And with the conversion to electric cars we will have to obtain copper, cobalt, lithium and nickel almost entirely from overseas. Not to mention build a new 1 gig power plant every three weeks between now and 2035. Those items will go sky high in price. You cannot increase demand for a mineral by 100x and the price not go sky high.

 

[Joe Flacco]

Dude is saying the recent money printing in the US which increased the supply of money by 30% is being largely offset by the paying off of consumer debt and the decline in consumer borrowing which reduces the supply of money.

 

[djd09]

Why home prices jumped $100,000-plus in 52 Orange County ZIPs​

Got a spare $100,000?


Why? Well, 52 of Orange County’s 83 ZIP codes saw their median selling price jumped by six figures during the past 12 months.

Why home prices jumped $100,000-plus in 52 Orange County ZIPs

Orange County ZIP codes with median prices $1 million and above grew by 10 to 25 over 12 months.

www.ocregister.com

 

[Terrel L. Shields]

And the Tax Man followeth.

 

[Michael S]

Definitely think inflation is here to stay. No one is going to lower their prices after the market has already anchored at that higher price. This is why you see gas prices shoot up $0.20 in a day but take weeks or months to go back down if the price of oil falls.

I rarely eat at restaurants but went with a group of coworkers on Friday. The first place was a half hour wait at 11:45 on a Friday. We went to another local restaurant/cafe next door and I paid $17.95 for a plate of enchiladas. I just found a copy of their menu from 2014 and that same meal was $12.75. So that's a 41% increase in 7 years, or an average of 5.8%/year. This is just a single data point - but there's no way to dump trillions of dollars across nearly every household with getting inflation.

 

[djd09]

Editorial | Long under control, inflation rearing its ugly head​

Officials at the Federal Reserve have dismissed recent rising prices as a temporary phenomenon. But what else can they be expected to say? It’s their job to keep fiscal matters under control.

Unfortunately, rising commodity prices — lumber and food — are drawing public concern.

So, too, are the steadily rising prices of oil and gasoline.

https://www.news-gazette.com/opinion/editorials/editorial-long-under-control-inflation-rearing-its-ugly-head/article_7b38759d-e392-5aba-b046-32aa62924920.html

well that stimulus check went right into the gas tank plus. thanks joe.

 

[Mejappz]

I had a bit of a cold last week and went to a local CVS to buy some cough syrup. The bottles were selling from $15.00 -$20.00. About 50% more than before. Nyquil was the cheapest at $10.00. I guess it's all part of "Building Back Better. Thanks, Joe.