You have inflation because we don’t teach basic economics in this country. We essentially have a nation of people who think it’s actually possible to stop an economy dead in its tracks (over a virus) and then print a bunch of cash to throw at said economy without dire consequences. Really?
Do you remember when we said back in 2020 that shutting down the economy was insane?
According to the latest from the Bureau of Labor statistics, Inflation is out of control. The all items index rose 6.8 percent for the 12 months ending October, the largest 12-month increase since the period ending June 1982.
Reminder: Inflation is a tax on EVERY American.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.8 percent in November on a seasonally adjusted basis after rising 0.9 percent in October, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.8 percent before seasonal adjustment.
The monthly all items seasonally adjusted increase was the result of broad increases in most component indexes, similar to last month. The indexes for gasoline, shelter, food, used cars and trucks, and new vehicles were among the
larger contributors. The energy index rose 3.5 percent in November as the gasoline index increased 6.1 percent and the other major energy component indexes also rose. The food index increased 0.7 percent as the index for food
at home rose 0.8 percent.
The index for all items less food and energy rose 0.5 percent in November following a 0.6-percent increase in October. Along with shelter, used cars and trucks, and new vehicles, the indexes for household furnishings and operations,
apparel, and airline fares were among those that increased. The indexes for motor vehicle insurance, recreation, and communication all declined in November.
The all items index rose 6.8 percent for the 12 months ending October, the largest 12-month increase since the period ending June 1982. The index for all items less food and energy rose 4.9 percent over the last 12 months, while the
energy index rose 33.3 percent over the last year, and the food index increased 6.1 percent. These changes are the largest 12-month increases in at least 13 years in the respective series.
Most people don’t understand the term “inflation.” It doesn’t mean rising the cost of goods and services. That’s the symptom, not the cause.
“Inflation” refers to inflating the supply of money, which devalues money already in circulation. By creating more money, the government devalues the money held by individuals and transfers purchasing power to itself. This is known as an “implicit tax,” as opposed to such things as the income tax, which is an “explicit tax.”
It’s not so much that prices are going up, but rather that your purchasing power is going down.
And this is just getting started.
Paul Plante says
Amen, well said, and thanks for having the grit to step up to the plate in the face of all the bull**** coming from goofy Joe Biden and the unbelievable federal reserve to the contrary and say it so clear!
INFLATION IS A REGRESSIVE TAX!
Paul Plante says
Doesn’t anyone in this country remember the rampant hyperinflation of the Weimar Republic which thought it could print money without end to solve its many problems?
In order to pay the striking workers the government simply printed more money and as now in this country under the goofball Biden administration which is attempting the same solution to its many problems, this flood of money led to hyperinflation as the more money was printed, the more prices rose.
Reaching a monthly inflation rate of approximately 29,500 percent in October 1923, and with an equivalent daily rate of 20.9 percent it took approximately 3.7 days for prices to double.
But what am I saying, that was more than a minute ago, so of course nobody remembers it.
As someone who lives on a fixed income in the cold country, where winter is a lot more than just a six-letter word, in another month or so, when January has settled in and February is looming large on the horizon, there are going to be a lot of people facing that problem of trying to figure out how to pay for heat, shelter and food when the Biden inflation has depleted what they had saved up to make it through the winter on.
Maybe they can figure out how to capture some of the hot air Joe Biden is always blowing to heat their houses with.
God knows there is plenty to go around.
Paul Plante says
“U.S. producer prices soar as supply bottlenecks persist”
By Lucia Mutikani
December 14, 2021
WASHINGTON, Dec 14 (Reuters) – U.S. producer prices increased more than expected in November as supply constraints persisted, leading to the biggest annual gain since the series was revamped 11 years ago and supporting views that inflation could remain uncomfortably high for some time.
Soaring inflation complicates President Joe Biden economic agenda, including a $1.75 trillion social policy and climate bill stuck in Congress.
Wholesale goods prices rose 1.2% after increasing 1.3% in October.
Prices for iron and steel scrap rose 10.7%.
In the 12 months through November, the PPI shot up 9.6%.
That was the largest gain since November 2010 and followed an 8.8% increase in October.
In the 12 months through November, the core PPI jumped 6.9%, the largest rise since 12-month data were first calculated in August 2014, after marching 6.3% in October.
“While modal scenarios where inflation returns toward the 2% target over multiple years still make sense, risks of a more extended sojourn above target continue to rise and are clearly at their most elevated in at least 40 years,” said Andrew Hollenhorst, chief U.S. economist at Citigroup in New York.
The core PCE price index accelerated 4.1% in the 12 months through October, the most since January 1991.
Paul Plante says
And hey Joe, my gasoline has not come down in price one penny!
I thought you were bringing relief at the pump, Joe, with your policies!
So how come my gasoline is still high?
Why are you failing us, Joe?
Why is your word no ******* good?
Paul R Plante says
My gas is still as high as it has been for the last so many months, this despite Joe Biden telling us that he was going to provide relief at the pump.
I guess that was just more Biden-esque BULL****!
Let’s go, Brandon!
Paul Plante says
“U.S. yields advance as mounting COVID cases unlikely to slow 2022 rate hikes”
By Gertrude Chavez-dreyfuss
January 3, 2022
Still the sharp rise in COVID infections was outweighed by inflation fears, with some investors believing the Fed could raise rates in March soon after it completes tapering of its bond purchases.
“It looks like the March meeting is in play on rate hikes.”
“I think that’s a little aggressive, but when you look at inflation, it continues to look bad,” said Stan Shipley, fixed income strategist at Evercore ISI in New York.
“There is no sign that inflation is moderating,” Shipley said.
“We’ll get December inflation in a week or two, and it’s going to be over 7%.”
Fed Governor Christopher Waller, who has voiced concerns about rising prices for months, said a few weeks ago he thought a rate hike in March would be “very likely” given inflation’s persistence and what he expects will be a return by then to pre-pandemic levels of employment.
Paul R Plante says
None of these incompetent clowns down there in the pestilential, miasmic swamp that calls itself Washington, D.C. have a clue as to what they are about or even the time of day as we see from the following:
“Fed’s Kashkari, citing inflation risks, sees 2 rate hikes this year”
By Ann Saphir and Jonnelle Marte
January 4, 2022
Jan 4 (Reuters) – Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday said he expects the U.S. central bank to need to raise interest rates two times this year to address persistently high inflation, reversing his long-held view that rates will need to stay at zero until at least 2024.
The surge in inflation seen over the past six months has surprised Fed officials, and they are now trying to determine how long those pressures may last, the policymaker said.
“I brought forward two rate increases into 2022 because inflation has been higher and more persistent than I had expected,” Kashkari said in a post on Medium.
The abrupt shift to embrace rate hikes by one of the Fed’s most dovish policymakers underscores the level of concern at the central bank over the threat of high inflation, now running more than twice the Fed’s 2% goal.
“The truth is, inflation has been higher than I expected and it has lasted longer than I had expected,” Kashkari said during a virtual event hosted by the Wisconsin Bankers Association.
“And so the key question is, is it still going to be transitory or not?”