Bidenflation reaches 30 year record high

The Off-Topic forum for anything non-LDS related, such as sports or politics. Rated PG through PG-13.
Post Reply
Hawkeye
2nd Counselor
Posts: 401
Joined: Tue Aug 03, 2021 1:37 pm

Bidenflation reaches 30 year record high

Post by Hawkeye »

Bidenflation Unexpectedly Accelerated in August to Fastest Pace in Over 30 Years
Inflation unexpectedly accelerated in August, as shortages of a wide range of consumer goods and services drove up prices.

The Personal Consumption Price Index for August increased 4.3 percent from one year ago, reflecting increases in the prices paid by consumers for both goods and services, Commerce Department data showed Friday. That is the fastest pace of inflation since January 1991.

Energy prices increased 24.9 percent from the depressed levels of a year ago. Food prices jumped 2.8 percent.

Core PCE prices, excluding food and energy, rose 3.6 percent compared with a year ago. That is also the fastest pace since 1991.

Compared with a month earlier, the PCE Price Index rose four-tenths of a percentage point. Analysts had forecast a three-tenths gain, which would have represented a one-tenth of a point slowdown from the July figure.

Core prices rose three-tenths of a point from July, matching the previous months gain and above the consensus forecast for two-tenths.

Inflation picked up for both goods and services. The index for goods rose 5.5 percent compared with a year ago, up from 5.3 percent in July. Durable goods prices jumped seven percent, up from 6.9 percent in the prior month. Prior to May and June of this year, inflation in durable goods has not run this hot since 1981. Nondurables rose 4.6 percent, up from 4.4 percent.

Services prices rose 3.6 percent, up from 3.5 percent. That is the fastest rate of inflation in services since 2006.

Speaking on a panel organized by the European Central Bank Wednesday, Federal Reserve Chairman Jerome Powell said he still expects inflation to ease eventually, but now expects high inflation to run into 2022. This spring Powell had declared high inflation would be transitory, which many Fed watchers understood to mean lasting just a few months.

“It’s also frustrating to see the bottlenecks and supply chain problems not getting better — in fact at the margins apparently getting a little bit worse,” he added. “We see that continuing into next year probably, and holding up inflation longer than we had thought.”
https://www.breitbart.com/economy/2021/ ... -30-years/

This is what democratic governments do. They run up debt purchasing votes. Then they inflate the currency to avoid having to pay it back. This how we pay for it, not in higher taxes but with an inflated currency. Tell me that's not a tax on the working law biding poor.
The best part about this is waiting four years to see how all the crazy apocalyptic predictions made by the fear mongering idiots in Right Wing media turned out to be painfully wrong...Gasoline would hit $10/gallon. Hyperinflation would ensue.
Veritas
User avatar
Doctor CamNC4Me
God
Posts: 8980
Joined: Wed Oct 28, 2020 2:04 am

Re: Bidenflation reaches 30 year record high

Post by Doctor CamNC4Me »

There’s some actual truth to this. Good job. Can’t make the pinter go brrrrrr without a consequence. in my opinion we should pay for our crap instead of inflating the dollar and kicking the can down the road. I’m not particularly happy with the Silent gen and Boomers using this tactic, and now we’re $30T in federal debt. I find it bananas to think this is fair to the working man.

- Doc
Hugh Nibley claimed he bumped into Adolf Hitler, Albert Einstein, Winston Churchill, Gertrude Stein, and the Grand Duke Vladimir Romanoff. Dishonesty is baked into Mormonism.
honorentheos
God
Posts: 3762
Joined: Mon Nov 23, 2020 2:15 am

Re: Bidenflation reaches 30 year record high

Post by honorentheos »

The debt is unfortunately a political pingpong ball rather than something either party takes seriously. Inflation was the inevitable consequence of the Trump tax cuts which was pointed out multiple times on the board yet here we are seeing Republicans blaming Biden.

Democrats want a $3.5 trillion fix everything package passed which certainly shows they aren't taking it seriously and deserve criticism on this front. But don't talk like it's a problem caused by one party.
User avatar
Gadianton
God
Posts: 3842
Joined: Sun Oct 25, 2020 11:56 pm
Location: Elsewhere

Re: Bidenflation reaches 30 year record high

Post by Gadianton »

Yep, it's true. Sort of. The part that isn't true is saying this is a Democrat-specific issue. If Trump were president, he'd be pushing the same agenda. Ajax forgets that Trump went to war with Mitch M. over additional stimulus. Trump's reasoning was different, it wasn't to stimulate the economy according to pseudo-Keynesian theory, it was to buy votes. Remember, Ajax, that Trump signed the first round of paychecks with his own name.
User avatar
Physics Guy
God
Posts: 1557
Joined: Tue Oct 27, 2020 7:40 am
Location: on the battlefield of life

Re: Bidenflation reaches 30 year record high

Post by Physics Guy »

If you get all your money in return for what you do or provide, then inflation means you will get more money for your work, in the same proportion that it will also cost you more money to buy things from other people. So the numbers of dollars in your life will change, but the goods and services that you get in return for your goods and services will stay the same.

If instead of selling goods or services you have a bunch of money, or other assets that are of no particular practical use besides their value in money, or if your income consists of a fixed amount of dollars per year, then inflation reduces the amount of goods and services you can get for your money. Inflation is basically a collective downward reassessment of how much we all believe in artificial economic abstractions like money, compared to concrete goods and services.

Rich people and people with fixed incomes hate inflation. It's not so bad for working people with something to offer that people actually want. A lot of macroeconomics is accordingly based on maintaining a certain amount of inflation, so that people have an incentive to work rather than just sit on their dough.

Like most things that are fine in moderation, inflation can definitely become bad in extremes. Conversely, though, like a lot of things that are bad in extremes, inflation can be fine in moderation.
I was a teenager before it was cool.
User avatar
Doctor CamNC4Me
God
Posts: 8980
Joined: Wed Oct 28, 2020 2:04 am

Re: Bidenflation reaches 30 year record high

Post by Doctor CamNC4Me »

honorentheos wrote:
Fri Oct 01, 2021 8:39 pm
The debt is unfortunately a political pingpong ball rather than something either party takes seriously. Inflation was the inevitable consequence of the Trump tax cuts which was pointed out multiple times on the board yet here we are seeing Republicans blaming Biden.

Democrats want a $3.5 trillion fix everything package passed which certainly shows they aren't taking it seriously and deserve criticism on this front. But don't talk like it's a problem caused by one party.
Well said. I think it was just a few days ago when my wife and I were talking about inflation, and we pegged the ‘true inflation’ at around 25% this year. I don’t have any data to support that, other than just anecdotally noticing the costs of goods and especially services.

- Doc
Hugh Nibley claimed he bumped into Adolf Hitler, Albert Einstein, Winston Churchill, Gertrude Stein, and the Grand Duke Vladimir Romanoff. Dishonesty is baked into Mormonism.
Hawkeye
2nd Counselor
Posts: 401
Joined: Tue Aug 03, 2021 1:37 pm

Re: Bidenflation reaches 30 year record high

Post by Hawkeye »

Doctor CamNC4Me wrote:
Fri Oct 01, 2021 8:16 pm
There’s some actual truth to this. Good job. Can’t make the pinter go brrrrrr without a consequence. in my opinion we should pay for our crap instead of inflating the dollar and kicking the can down the road. I’m not particularly happy with the Silent gen and Boomers using this tactic, and now we’re $30T in federal debt. I find it bananas to think this is fair to the working man.

- Doc
Yeah Honor, Cam, and Gad are right that it's not just Democrats, though Biden and the far left are particularly bad about this. I was actually referring to most democratic governments around the world, not just Democrats in the US.

I think the most disheartening part is that this is what nearly all governments around the world do, so it's not just the US. That's why they're cracking down hard on things like bitcoin.
Last edited by Hawkeye on Fri Oct 01, 2021 9:25 pm, edited 2 times in total.
The best part about this is waiting four years to see how all the crazy apocalyptic predictions made by the fear mongering idiots in Right Wing media turned out to be painfully wrong...Gasoline would hit $10/gallon. Hyperinflation would ensue.
Veritas
User avatar
Gadianton
God
Posts: 3842
Joined: Sun Oct 25, 2020 11:56 pm
Location: Elsewhere

Re: Bidenflation reaches 30 year record high

Post by Gadianton »

As physics guy alludes to, as bad as inflation is, it's not as bad as deflation.

And also, Ajax in all likelihood is personally helped overall by inflation, as PG mentioned.
User avatar
Doctor CamNC4Me
God
Posts: 8980
Joined: Wed Oct 28, 2020 2:04 am

Re: Bidenflation reaches 30 year record high

Post by Doctor CamNC4Me »

Hawkeye wrote:
Fri Oct 01, 2021 9:20 pm
Doctor CamNC4Me wrote:
Fri Oct 01, 2021 8:16 pm
There’s some actual truth to this. Good job. Can’t make the pinter go brrrrrr without a consequence. in my opinion we should pay for our crap instead of inflating the dollar and kicking the can down the road. I’m not particularly happy with the Silent gen and Boomers using this tactic, and now we’re $30T in federal debt. I find it bananas to think this is fair to the working man.

- Doc
I think the most disheartening part is that this is what nearly all governments around the world do, so it's not just the US.
They never learn from one another. It’s crazy. I can’t believe our own government has decided to do this because it’s politically expedient. This tactic, in my opinion, is far more damaging to the average person than laying out a common sense framework to pay for *whatever* through taxation. I get the argument some make about the upside of debt-financing things now, which is fine, but to not have a hard plan to pay for our expenditures is immoral - passing trillions to our sons and daughters, like our forebears did to us, is unconscionable to me.

- Doc
Hugh Nibley claimed he bumped into Adolf Hitler, Albert Einstein, Winston Churchill, Gertrude Stein, and the Grand Duke Vladimir Romanoff. Dishonesty is baked into Mormonism.
honorentheos
God
Posts: 3762
Joined: Mon Nov 23, 2020 2:15 am

Re: Bidenflation reaches 30 year record high

Post by honorentheos »

Gadianton wrote:
Fri Oct 01, 2021 9:24 pm
As physics guy alludes to, as bad as inflation is, it's not as bad as deflation.

And also, Ajax in all likelihood is personally helped overall by inflation, as PG mentioned.
There is something to be said for highlighting the pace of inflation more than focusing on "inflation" written in scary font. Certainly anyone with debt such as a mortgage benefits from inflation in addition to the cases PG noted above. But I expect most people only think about it when inflation is rapid and salaries/wage adjustments haven't aligned with the lived experience of having to pay more for the groceries or replacing an old vehicle. Even if Ajax is helped by inflation in the long run, it isn't foolish to expect our elected reps to be conscientious of the effects of their policies on the day-over-day value of a dollar, too.

Granted, I'm more bearish on the Republican approach of pretending to be fiscally responsible as long as it only requires riling up their voters against Democrat spending plans. More than I am bearish about Democrats seeing the need to invest in our nation's future but not having any sense in how to create a budget. But when, for example, Senator Manchin puts a $1.5 trillion cap on how much more spending he is willing to support and is vilified as being in the pockets of big coal or what have you, we aren't talking about a much better situation on that side, either. Both are using our collective political short term memory and political biases to play politics with that very same future.

If the Democrats treated the effects of poor fiscal policy on future generations the same as they recognize climate change will impact those same grandchildren we'd be better off. And Republicans? They need to figure out if they give any "F"s about anyone who is younger than 60, period, it seems...
Post Reply