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Hidden "tax" is coming to America if we don't stop this irrational spending.

I keep hearing this "The fed is targeting 2%" BS...

8' 2x4s were ~$2.75 pre-COVID. Right now they're ~$8.00

A bushel of corn was $3.80, right now it's $6.80.

I'm not the best at math, but I don't think that's 2%. I don't think I'm cherry picking here either. I could come up with 100 different examples of this and they can't all be driven by supply chain issues. That just sounds like a convenient excuse, IMO.
Wow, on the corn price! Guess the farmers won't need any more subsidies.

Wages are increasing and employment numbers are rising. That tells me tax revenue should increase proportionally and State budgets should be in good shape.

People want and expect govt. services. How do people think those services get paid for?

I don't have any problem with paying more taxes as long as the wealthy pay their fair share.
 
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Our infrastructure is in abysmal condition through neglect. So, the answer is to ignore it further until repair is not possible and replacement is necessary and will be more costly.

Practicality and logic. America needs jobs. Cities and states need the investment. Connect the dots.

Just have Nike, Amazon and the others pay taxes. Like we do. That's all.
The nation has adopted the infrastructure plan the state of Texas has perfected........Maintenance is a waste of corporate bonus money! What can possibly go wrong with a little profit taking? Inflation? Hell, we haven't had a problem with inflation ever since the Reagan Administration banned the use of the word....things just cost more!
 
"We are seeing substantial inflation," Berkshire Hathaway CEO Warren Buffett said at the Berkshire Hathaway annual shareholder meeting exclusively live-streamed by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."

Sure there are multiple reasons , but do you think consumers care of reasons. If shit costs more, shit costs more. And we better get used to it for foreseeable future

Yeah, there's clearly been inflation. That started during COVID and got worse for certain goods because if the supply chain.

Thus far, there haven't been any tax increases anyone has paid for Biden's spending. The Republicans controlled Congress and the White House with the first couple of massive spending bills, but again, no tax increases.

So this inflation seems so far to be an issue of supply not being what it was pre-COVID. Inflation will continue until the GLOBAL economy rebounds. As long as countries like India continue to suffer setbacks, the supply chain issues will remain and inflation will reflect that.

I mean, interest rates can't go lower without going heavily negative. The inflationary problems if the 70s and early 80s were related to exorbitant interest rates. Again, not taxes.

Anyway, it's an interesting issue and I'll continue to follow it. But I agree the inflation sucks as a consumer. The cost of meats right now is through the roof!
 
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never did I mention taxes were responsible. Just the undeniable fact that things are costing more and will continue to rise for foreseeable future

I see. Yes, it was some other posters mentioning taxes in relation to inflation. Sorry I directed the tax issue at you if that wasn't your point.
 
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I keep hearing this "The fed is targeting 2%" BS...

8' 2x4s were ~$2.75 pre-COVID. Right now they're ~$8.00

A bushel of corn was $3.80, right now it's $6.80.

I'm not the best at math, but I don't think that's 2%. I don't think I'm cherry picking here either. I could come up with 100 different examples of this and they can't all be driven by supply chain issues. That just sounds like a convenient excuse, IMO.

Well, there's probably price gouging happening, too.

But why don't you think it's supply chain? The economy is global and mining, logging, shipping, and manufacturing have been really slow in places like India, Mexico, Vietnam, Brazil, etc. China? I don't know. They probably make their workers work no matter what, but I'm not sure. At best, supply has been stop and start. But it's clear that worldwide demand is far outstripping supply.

Honestly, I'm surprised prices have been as low as they have been, but it does seem demand has been increasing dramatically since the vaccines got underway even though it's probably going to be at least another year until supply really gets churning again and that means prices will keep rising for a while.
 

So how close are we to that horrible inflation? The fed is targeting 2% each year and have tools in place to keep inflation in check.

So since you are the fear mongering type, when will this horrific inflation hit? How high will it be?
Inflation was 4.1% in the first quarter.
 
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Because there is a lot of money out there, interest rates are near zero, and millennials have $$$ now in the economy. But I do believe the fed reserve will get in front of any inflation. Yellen said today that they may need to raise rates to prevent overheating.
It takes a lot of rate-raising to choke off inflation once it takes root. The last time they actually raised rates enough to cut inflation it created a significant rise in unemployment and harm to the economy. It is better to avoid allowing it to start than to try to slow it down once it's rolling.
 
We have been seeing financial asset price inflation pre COVID. Now, we're seeing an inflation in the price of real assets - homes, commodities etc. What we aren't seeing is a rise in 'inflation expectation'. This will happen when banks start creating money again ... when monetary velocity ramps up.

Until then ... same same.
 
Nice try moron, trickle down does work and the left knows it that is why they hate it so much, but you already knew that.

Still in that fantasy land I see. Pretend you know what know what you're talking about. It doesn't matter, since posters with knowledge and understanding will simply ignore your ramblings.

Others will humor you. Either way, post nonsense and see what you get.
 
Still in that fantasy land I see. Pretend you know what know what you're talking about. It doesn't matter, since posters with knowledge and understanding will simply ignore your ramblings.

Others will humor you. Either way, post nonsense and see what you get.
Speaking of being ignorant and a complete moron, I'm honored that you the King of those traits chose to address me. If you are so gullible to believe the leftest nonsense you spout, you deserve what you get. Have you ever read a book pertaining to what happened in the 20th century in Eastern Europe? Please don't reproduce.
 
Look at the nation’s deficit growth...look at this nation’s disparity of wealth...look at the nation's demise of its middle class the past 35 years...
To try and blame trickle down to the nations deficit and other ills is so off the mark I don't know what to say. Let me keep this simple. If a company is allowed to keep more of it's own money, they hire more workers, who now have an income that they then spend on goods and services which then requires others to produce those goods and services. That is trickle down. How does that "not work"? That's how capitalism works. Unfortunately you are listening to people who hate capitalism and then claim trickle down doesn't work. That is complete nonsense. Don't call it trickle down then call it whatever you want but of course it works. How can it not?
 
To try and blame trickle down to the nations deficit and other ills is so off the mark I don't know what to say. Let me keep this simple. If a company is allowed to keep more of it's own money, they hire more workers, who now have an income that they then spend on goods and services which then requires others to produce those goods and services. That is trickle down. How does that "not work"? That's how capitalism works. Unfortunately you are listening to people who hate capitalism and then claim trickle down doesn't work. That is complete nonsense. Don't call it trickle down then call it whatever you want but of course it works. How can it not?
Lol
 
To try and blame trickle down to the nations deficit and other ills is so off the mark I don't know what to say. Let me keep this simple. If a company is allowed to keep more of it's own money, they hire more workers, who now have an income that they then spend on goods and services which then requires others to produce those goods and services. That is trickle down. How does that "not work"? That's how capitalism works. Unfortunately you are listening to people who hate capitalism and then claim trickle down doesn't work. That is complete nonsense. Don't call it trickle down then call it whatever you want but of course it works. How can it not?
If a company is allowed to keep more of it's own money, the CEO orders the CFO to start buying back any outstanding company stocks because this will increase the value of the company's stock, and the executives bonuses are based on the value of this same stock so the executives can exercise their stock option clause and get very wealthy.

FIFY
 
If a company is allowed to keep more of it's own money, the CEO orders the CFO to start buying back any outstanding company stocks because this will increase the value of the company's stock, and the executives bonuses are based on the value of this same stock so the executives can exercise their stock option clause and get very wealthy.

FIFY
Ya, all company profits are used for bonuses and stock buy back. :D :D You've obviously never been an executive at a large corp. That's ok, just keep listening to your shop foreman.
 
If a company is allowed to keep more of it's own money, the CEO orders the CFO to start buying back any outstanding company stocks because this will increase the value of the company's stock, and the executives bonuses are based on the value of this same stock so the executives can exercise their stock option clause and get very wealthy.

FIFY

WRONG! ;)

If a company is allowed to keep more of it's own money ... they give their management bigger bonuses. Then they borrow money to fund their buybacks to hoodwink shareholders into believing that they're actually making more money so they can give themselves bigger bonuses.

S&P profitability is at all time lows. It's preferable now to be a "pre-profit" company (think TSLA) than it is to be a profitable company, old fashioned equity valuation is a drag on share prices. 20% of the S&P 500 have been deemed 'zombie companies' by Bloomberg.

Our 'efficient market' at work.
 
WRONG! ;)

If a company is allowed to keep more of it's own money ... they give their management bigger bonuses. Then they borrow money to fund their buybacks to hoodwink shareholders into believing that they're actually making more money so they can give themselves bigger bonuses.

S&P profitability is at all time lows. It's preferable now to be a "pre-profit" company (think TSLA) than it is to be a profitable company, old fashioned equity valuation is a drag on share prices. 20% of the S&P 500 have been deemed 'zombie companies' by Bloomberg.

Our 'efficient market' at work.
Thanks for your worthless opinion, comrade.
 


My boy Kevin is pretty spot on here. For all the fear monger types, watch this and let me know what you think.
 
Speaking of being ignorant and a complete moron, I'm honored that you the King of those traits chose to address me. If you are so gullible to believe the leftest nonsense you spout, you deserve what you get. Have you ever read a book pertaining to what happened in the 20th century in Eastern Europe? Please don't reproduce.
Thanks for your worthless opinion, comrade.
I’m wondering how job creation looks when you compare Democrats vs Republicans. If I remember correctly, at least in my lifetime, it seems Democrats usually have to clean up Republican messes.
 
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Neither of theses statements are true. And, if Bloomberg is saying that, they are wrong.

Since you guys are so smart. Put these three data points together ... interest rates are at all time lows, corporates are engorged with debt and inflation is set to spike. Tell us uneducated rubes what this is all pointing to.



 


My boy Kevin is pretty spot on here. For all the fear monger types, watch this and let me know what you think.

This has already been discussed, hasn't it? "Inflation" is the inflation of money supply in the system. The fed provides only a small portion of money in circulation. Most of it is created by banks. Fed QE isn't causing "inflation" because banks haven't been lending. Ironically, banks will start lending when corporate / individual solvency OUTLOOK improves ... if this cause a mean reversion in monetary velocity, and a flush of cash. That will drive up inflation.

Inflation is coming (not HYPERINFLATION, not WEINMAR GERMANY) ... just inflation. The actual big question is "will we see a deflationary dump, driven by a fall in financial asset prices before secular inflation kicks in or not". You don't have to resort to 'fear' if you prepare for potential scenarios.
 
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Since you guys are so smart. Put these three data points together ... interest rates are at all time lows, corporates are engorged with debt and inflation is set to spike. Tell us uneducated rubes what this is all pointing to.




I have agreed with inflation is coming all along In this thread. I simply pointed out those 2 statements you made were incorrect, which they are. Maybe you should take a deep breath and relax a little.
 


My boy Kevin is pretty spot on here. For all the fear monger types, watch this and let me know what you think.

First, stop calling people fear mongers for keeping an eye on inflation. It makes you sound dumb. Only people fear mongering are the cons playing politics, which of course, is dumb.

I only listened to the first 5 minutes of this as I don’t have time right now. Everything he said seems to be in line with what most are saying in this thread.
 
I have agreed with inflation is coming all along In this thread. I simply pointed out those 2 statements you made were incorrect, which they are. Maybe you should take a deep breath and relax a little.

Ok ... took a deep breath and relaxed a little. ;)

Will post the chart on declining profitability if/when I find it. The zombie company thing by bloomberg was based on COVID + inflation. We shall see, won't we?
 
Look at the nation’s deficit growth...look at this nation’s disparity of wealth...look at the nation's demise of its middle class the past 35 years...

Doesn't matter to people like abby. The wider the gap the better - it's the measure of successful monetary climate. The trickle down concept was built on it. The wealth will work its way down, sort of, but not too much. Not enough to threaten.
 
First, stop calling people fear mongers for keeping an eye on inflation. It makes you sound dumb. Only people fear mongering are the cons playing politics, which of course, is dumb.

I only listened to the first 5 minutes of this as I don’t have time right now. Everything he said seems to be in line with what most are saying in this thread.
The fear mongers I was talking about were the cons playing politics, not you. I’m in full agreement we should be keeping an eye on inflation but OP and others in this thread are pulling the Obama years Glenn Beck act out after being dormant for 4 years.

But in regards to the video, give it a full listen when you have time. He does a really good job explaining the inflation situation and the politics behind it currently. Also if you haven’t subscribed to him on YouTube you should. He has some good guests on and breaks down the feds statements and meetings pretty well.
 
Speaking of being ignorant and a complete moron, I'm honored that you the King of those traits chose to address me. If you are so gullible to believe the leftest nonsense you spout, you deserve what you get. Have you ever read a book pertaining to what happened in the 20th century in Eastern Europe? Please don't reproduce.

I can't relate to you how crushing it is to receive this scathing rebuke. I do have this question though. Are you aware of the definition of ignorant? I would be cautious applying that term when opinionating, since you don't seem to realize your OPINIONS are opinions.

So, there are counter arguments to your opinions. And, yes, you are subject to scrutiny.
 
The inflation talk is so overblown its basically fear mongering at this point.
I wouldn't call it overblown. Perhaps a bit premature.

Inflation is something to keep a close eye on but needs to be balanced against the obvious need to address some infrastructure requirements. Smart infrastructure spending is good for the economy longer term.

There is no doubt we can control spending in other places to pay for a lot of infrastructure. I'm sure Defense is certainly one of those areas where we can spend smarter, but probably not the only area.

I think Lee Iacocca said once that a good businessperson can cut 10% from something and you won't know it happened.
 
I wouldn't call it overblown. Perhaps a bit premature.

Inflation is something to keep a close eye on but needs to be balanced against the obvious need to address some infrastructure requirements. Smart infrastructure spending is good for the economy longer term.

There is no doubt we can control spending in other places to pay for a lot of infrastructure. I'm sure Defense is certainly one of those areas where we can spend smarter, but probably not the only area.

I think Lee Iacocca said once that a good businessperson can cut 10% from something and you won't know it happened.

Premature? Inflation has already happened!! Financial asset prices are at nosebleed levels.

The $400,000 question is whether Powell will find a decent partner in Biden and the Congress (i.e., will Dems hold in 2022) to make a permanent shift from 'monetary dominance' to 'fiscal dominance' long enough that this inflation moves from financial assets to main street (higher commodity prices, higher wages, higher home prices).

 
Premature? Inflation has already happened!! Financial asset prices are at nosebleed levels.

The $400,000 question is whether Powell will find a decent partner in Biden and the Congress (i.e., will Dems hold in 2022) to make a permanent shift from 'monetary dominance' to 'fiscal dominance' long enough that this inflation moves from financial assets to main street (higher commodity prices, higher wages, higher home prices).


Where is this inflation at? It’s been 2ish%since 1980 and the fed is saying it should avg 2%-2.5% this decade
 

Where is this inflation at? It’s been 2ish%since 1980 and the fed is saying it should avg 2%-2.5% this decade

Again ... this 'inflation' is inflation expectation as captured in bond pricing. Actual inflation is anybody's guess, as the govt. has been changing the calculation of inflation beyond recognition. A website known as ShadowStats computes inflation based on the definition used in 1990, and inflation clocks in at 6 - 10% p.a.

So, we have a situation where the Federal Reserve HAS to keep 'inflation expectations' low, because overleveraged companies, the government itself (as well as pension funds and many states) will have serious trouble meeting their interest obligations if interest rates rise to reflect higher 'real inflation'. We're in a tough spot.

Arithmetically, nominal interest rates = real rates + inflation expectations. As we speak, real rates are trending negative and are expected by some to go much lower because, again, inflation. That's the economic rationale for gold, commodities and real assets.

It's not that hard, really ... do you truly believe your cost of living is rising by 2% p.a.? Here are the costs we know are growing faster than that - housing, healthcare, education (the big three). Really, the only things that haven't escalated are base commodities, and they're a smaller and smaller size of our consumption basket. Processed foods, however, have been inflating as well as 'shrinkflating' (getting smaller in size).

 
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