Bidenflation reaches 30 year record high

[Alf'Omega]

It's mostly about COVID and supply/demand. Economists had been predicting this well before Biden became President. But just chalk this one up as reason #4,481 not to trust anything Brietbart says.

[Alf'Omega]

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.

Bingo.

[Alf'Omega]

German inflation hits 29-year high as energy costs spike across Europe

Gee, and he almost had us believing this was an America/Democrat thing.

[Alf'Omega]

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.

One must wonder why ajax doesn't even bother to read his own references. From the first sentence:

"Inflation unexpectedly accelerated in August, as shortages of a wide range of consumer goods and services drove up prices."

Well, no crap. This was expected. So how exactly is it Biden's fault that consumer demand outpaced supply? This is a good sign that we're on the road to economic recovery.

[Cultellus]

Gorilla

[Alf'Omega]

"Inflation unexpectedly accelerated in August, as shortages of a wide range of consumer goods and services drove up prices."

Well, no crap. This was expected. So how exactly is it Biden's fault that consumer demand outpaced supply? This is a good sign that we're on the road to economic recovery.

Alf, again, you are as dumb as dumb gets. Your assumptions about stuff are almost as insane as your assumptions about people.

Shortages can happen not just because the demand goes up, ding dong. The demand can be static and there can be shortages. And, if a government decides to jack money into an economy to prime it (Biden/Trump/McConnell/Yellen, etc.), that does not automatically mean that demand will outpace supply. If you think that the plan was to create shortages of a wide range of consumer goods, you are just too moronic for words. You are basically arguing that Biden wants things to suck and the more it sucks the more it is working.... See!

And of course, Cult comes to rescue the Nazi.

1. I didn't say shortages happen only because demand goes up. You just made that up. I said the inflation is directly tied to recovering from a global pandemic that crashed economies around the world. This is why we're seeing similar rates of increased inflation across the globe. During the great recession in 2009, gasoline prices dropped a full $1/gallon. Why? Because fewer people were driving/traveling. But who was dumb enough to say cheap gas at that time meant the economy was great? It doesn't take a genius to understand that demand can skyrocket over night whereas depleted supplies typically take time to replenish. That's where we're at right now, which was inevitable if we were ever serious about economic recovery.

2. No one said "jacking money" into the economy is going to fix inflation. No one. Ever. But when poorer and middle class Americans have more money to spend, they actually spend it (increasing demand). Consumer spending is the lifeline of our economy. The wealthy who get large tax breaks tend to hoard their wealth.

The fact is skyrocketing prices is directly related to more demand with limited supply. Gas, homes, cars, etc. Goods and services didn't ramp up as quickly as the demand did during the spring when Americans started to travel. Hotel rooms this year are double the price not only because of skyrocketing demand, but because they're trying to make up for lost revenue from the previous year due to COVID.

[Cultellus]

Gorilla

[ajax18]

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.

How many of us have seen pay raises equal to the recent price increases?

[Cultellus]

Gorilla

[Gadianton]

How many of us have seen pay raises equal to the recent price increases?

Your mortgage payment is falling in real terms, and that offsets the higher prices you're paying. And your house has appreciated substantially.

As for lower income people who rent; it's anything but a good situation.