Inflation rises 7% over the past Year, highest since 1982

binsfeldcyhawk2

HR Legend
Gold Member
Oct 13, 2006
22,058
28,235
113
The consumer price index, an inflation gauge that measures costs across dozens of items, rose 7% in December from a year earlier, the fastest pace since June 1982.

Excluding food and energy, so-called core CPI was up 5.5% on the year, the biggest growth since February 1991.

 

seminole97

HR Legend
Jun 14, 2005
15,275
15,462
113
Trump set records for spending. He also set records for debt. And never attempted to pay for any of his programs. How much is he responsible for?
Trump, Schumer, Pelosi, Biden all deserve equal measures of opprobrium for putting their names to trillions in unfunded spending.
Do not fail to include chairman Powell and the miscreants in the Marriner Eccles building that ran the ‘digital presses’ that makes it all possible.
 

The Tradition

HR King
Apr 23, 2002
107,397
79,919
113
Trump set records for spending. He also set records for debt. And never attempted to pay for any of his programs. How much is he responsible for?

You do understand that the president can't spend a dime unless Congress gives it to him, right?
 
Feb 9, 2013
16,131
44,589
113
Biden’s economic advisor was on CNN a bit ago saying passing BBB would reduce inflation. I’m no expert, but how does more government support and putting more money in people’s pockets help reduce inflation?
 

UNIowaHawk

HR Legend
Jul 22, 2011
17,944
13,491
113
You do understand that the president can't spend a dime unless Congress gives it to him, right?
He doesn’t. He also doesn’t realize that enormous spending was 100% non-partisan and there were massive grumblings that he didn’t spend more.
 

Huey Grey

HR Legend
Jan 15, 2013
47,204
66,026
113
You do understand that the president can't spend a dime unless Congress gives it to him, right?
Trump controlled Congress when he entered office. He used it to pass tax cuts for rich people that wasn't offset by spending cuts.

Trump and all the Rs signed off on record spending. If you want to complain about Democratic spending, that is fair. But you need to give at least equal time to complaining about Republican spending then.
 

luvmyhawks

HR Legend
Mar 22, 2005
19,409
15,025
113
Yes. How exactly do you propose the fed fix this?

The fed should have been tapering their asset purchases back in June or July of last year. I said that as early as March/April of last year. That would have been a start. Our governments spending is reckless, but it is the federal reserve that is letting them run on an unlimited line of credit.
 
  • Like
Reactions: Sooner-Be-Dead

binsfeldcyhawk2

HR Legend
Gold Member
Oct 13, 2006
22,058
28,235
113
public-debt-of-the-united-states-by-month.jpg
 

Huey Grey

HR Legend
Jan 15, 2013
47,204
66,026
113
The fed should have been tapering their asset purchases back in June or July of last year. I said that as early as March/April of last year. That would have been a start. Our governments spending is reckless, but it is the federal reserve that is letting them run on an unlimited line of credit.
The fed has been winding down bond purchasing. So whats left? Raise interest rates? That will depress the housing and car markets.
 

The Tradition

HR King
Apr 23, 2002
107,397
79,919
113
Trump controlled Congress when he entered office. He used it to pass tax cuts for rich people that wasn't offset by spending cuts.

Trump and all the Rs signed off on record spending. If you want to complain about Democratic spending, that is fair. But you need to give at least equal time to complaining about Republican spending then.

All the spending happened in Trump's last year of office. Congress sent emergency spending bills and Trump signed them. Congress was controlled by the dems at that time.
 

sober_teacher

HR Legend
Mar 26, 2007
12,187
14,434
113
I believe Ive read that to a large extent, a good chunk of the inflation won’t really subside until we get the global supply chains straightened out.
 
  • Like
Reactions: Huey Grey

seminole97

HR Legend
Jun 14, 2005
15,275
15,462
113
I believe Ive read that to a large extent, a good chunk of the inflation won’t really subside until we get the global supply chains straightened out.
At every product category I’ve examined outside autos (held up by chips) throughput has been higher. It’s definitely the case at our ports.

It’s less that supply chains are snarled, it’s that the production of supply is insufficient to meet the artificial demand created by trillions in monetary creation. So prices have surged to keep the shelves from emptying.

Last week I went to Publix and noticed an empty stretch of shelves. Assumed it was some kind of re-arrangement underway. There were tiny signs spaced along the shelf asking customer to only buy two sports drinks. That’s what was wiped out. They hadn’t increased the price fast enough.

The price of carbonated sugar water has exploded in the last 8 months.

Last weekend my wife came home from Walmart with “less processed” sugar. I’ve never heard of that (not a baker). The normal, granulated sugar I’ve seen on the shelf my entire life was sold out. Entirely.

Inflation can achieve the same miracle here that it did in Zimbabwe and Venezuela if we just give the MMTers the chance they want.
 
  • Like
Reactions: Titus Andronicus

Huey Grey

HR Legend
Jan 15, 2013
47,204
66,026
113
All the spending happened in Trump's last year of office. Congress sent emergency spending bills and Trump signed them. Congress was controlled by the dems at that time.
His tax cuts came with a $2T. That came in Trump's first year.
 

Huey Grey

HR Legend
Jan 15, 2013
47,204
66,026
113
At every product category I’ve examined outside autos (held up by chips) throughput has been higher. It’s definitely the case at our ports.

It’s less that supply chains are snarled, it’s that the production of supply is insufficient to meet the artificial demand created by trillions in monetary creation. So prices have surged to keep the shelves from emptying.

Last week I went to Publix and noticed an empty stretch of shelves. Assumed it was some kind of re-arrangement underway. There were tiny signs spaced along the shelf asking customer to only buy two sports drinks. That’s what was wiped out. They hadn’t increased the price fast enough.

The price of carbonated sugar water has exploded in the last 8 months.

Last weekend my wife came home from Walmart with “less processed” sugar. I’ve never heard of that (not a baker). The normal, granulated sugar I’ve seen on the shelf my entire life was sold out. Entirely.

Inflation can achieve the same miracle here that it did in Zimbabwe and Venezuela if we just give the MMTers the chance they want.
I agree. Supply chains are huge problem and what I've read is that they are the main driver of inflation. But that is beyond the control of the fed.
 
  • Like
Reactions: srams21

Hoosierhawkeye

HR Legend
Sep 16, 2008
45,296
36,629
113
39
All the spending happened in Trump's last year of office. Congress sent emergency spending bills and Trump signed them. Congress was controlled by the dems at that time.

The house was controlled by Dems.

The senate was controlled by Republicans who also had to pass the bill.

And Trump did sign them.
 

Hoosierhawkeye

HR Legend
Sep 16, 2008
45,296
36,629
113
39
I agree. Supply chains are huge problem and what I've read is that they are the main driver of inflation. But that is beyond the control of the fed.

Money supply jumped 25% in one year from Jan 2020 to Jan 2021. I think it's beyond just the supply chains. Although that is a part of it.
 

seminole97

HR Legend
Jun 14, 2005
15,275
15,462
113
I agree. Supply chains are huge problem and what I've read is that they are the main driver of inflation. But that is beyond the control of the fed.
You misunderstood.
Things aren’t being ‘held up’ by the supply chain.
We’re moving more of just about good you want to name.
What is missing is a surge of production that would support the surge in spending.

The Fed printed money to enable spending, but they can’t print beef or soda to prevent the monetary creation from just increasing prices.

In a real market economy your production is your supply for trade. As you produce you can trade and consume. The Fed printed a bunch of new ‘consumption tickets’ without there having been any coincident increase in production. Without an increase supply of goods the money just raises prices as those with money bid away the existing stock.

"We can guarantee cash payments from here on out, what we cannot guarantee is the purchasing power of that cash." -Alan Greenspan during remarks on Social Security, Feb 16, 2005
 

bhawk24bob

HR Legend
Jul 8, 2001
16,837
4,324
113
The fed should have been tapering their asset purchases back in June or July of last year. I said that as early as March/April of last year. That would have been a start. Our governments spending is reckless, but it is the federal reserve that is letting them run on an unlimited line of credit.

Like I’ve always told people, your FRB branch or the Board is always hiring good economists. They are always the smartest people in the room there and routinely embarrass PhD’s that come to do lunch and learns to try and lecture said economists. You should apply or at minimum go lecture some of them so you can have a spirited discussion
 
  • Like
Reactions: noStemsnoSTICKS

srams21

HR Legend
Gold Member
May 23, 2004
22,906
32,083
113
All the spending happened in Trump's last year of office. Congress sent emergency spending bills and Trump signed them. Congress was controlled by the dems at that time.
Almost none of this is true. The deficit rose EVERY year under Trump. Well before COVID. Also, if Trump disagreed with those emergency spending bills, why did he sign them?

deficit-trends-viz.svg
 

seminole97

HR Legend
Jun 14, 2005
15,275
15,462
113
Almost none of this is true. The deficit rose EVERY year under Trump. Well before COVID. Also, if Trump disagreed with those emergency spending bills, why did he sign them?

deficit-trends-viz.svg
If you check the Treasury's own numbers we had a deficit in 2000 as well.
Our debt increased by a paltry 17 billion, but there was never a fiscal year that the debt didn't increase:


DateDebt Held by the PublicIntragovernmental HoldingsTotal Public Debt OutstandingAnnual DeficitChange in Deficit
09/30/1996$5,224,810,939,135.73$250,828,038,426.34-$30,404,952,269.73
09/30/1997$3,789,667,546,849.60$1,623,478,464,547.74$5,413,146,011,397.34$188,335,072,261.61-$62,492,966,164.73
09/30/1998$3,733,864,472,163.53$1,792,328,536,734.09$5,526,193,008,897.62$113,046,997,500.28-$75,288,074,761.33
09/30/1999$3,636,105,594,501.81$2,020,166,307,131.62$5,656,270,901,633.43$130,077,892,735.81$17,030,895,235.53
09/29/2000$3,405,303,490,221.20$2,268,874,719,665.66$5,674,178,209,886.86$17,907,308,253.43-$112,170,584,482.38
09/28/2001$3,339,310,176,094.74$2,468,153,236,105.32$5,807,463,412,200.06$133,285,202,313.20$115,377,894,059.77
09/30/2002$3,553,180,247,874.74$2,675,055,717,722.42$6,228,235,965,597.16$420,772,553,397.10$287,487,351,083.90
09/30/2003$3,924,090,106,880.88$2,859,140,955,862.74$6,783,231,062,743.62$554,995,097,146.46$134,222,543,749.36
09/30/2004$4,307,344,596,908.92$3,071,708,099,421.40$7,379,052,696,330.32$595,821,633,586.70$40,826,536,440.24
09/30/2005$4,601,238,726,062.04$3,331,470,935,661.46$7,932,709,661,723.50$553,656,965,393.18-$42,164,668,193.52
09/29/2006$4,843,120,736,192.43$3,663,853,163,022.80$8,506,973,899,215.23$574,264,237,491.73$20,607,272,098.55
09/28/2007$5,049,305,502,926.48$3,958,347,869,336.00$9,007,653,372,262.48$500,679,473,047.25-$73,584,764,444.48
09/30/2008$5,808,691,665,403.71$4,216,033,231,508.78$10,024,724,896,912.40$1,017,071,524,649.92$516,392,051,602.67
09/30/2009$7,551,861,558,736.77$4,357,967,444,774.98$11,909,829,003,511.70$1,885,104,106,599.30$868,032,581,949.38
09/30/2010$9,022,808,423,453.08$4,538,814,607,438.71$13,561,623,030,891.70$1,651,794,027,380.00-$233,310,079,219.30
09/30/2011$10,127,031,384,654.10$4,663,308,943,903.05$14,790,340,328,557.10$1,228,717,297,665.40-$423,076,729,714.60
09/28/2012$11,269,585,800,039.30$4,796,655,607,346.57$16,066,241,407,385.80$1,275,901,078,828.70$47,183,781,163.30
09/30/2013$11,976,279,236,073.80$4,761,904,290,623.49$16,738,183,526,697.30$671,942,119,311.50-$603,958,959,517.20
09/30/2014$12,784,971,238,978.00$5,039,100,141,755.80$17,824,071,380,733.80$1,085,887,854,036.50$413,945,734,725.00
09/30/2015$13,123,847,198,347.80$5,026,770,468,136.52$18,150,617,666,484.30$326,546,285,750.50-$759,341,568,286.00
09/30/2016$14,173,423,516,895.80$5,400,021,197,040.97$19,573,444,713,936.70$1,422,827,047,452.40$1,096,280,761,701.90
09/29/2017$14,673,428,663,140.90$5,571,471,352,912.57$20,244,900,016,053.50$671,455,302,116.80-$751,371,745,335.60
09/28/2018$15,761,154,524,132.40$5,754,903,659,047.78$21,516,058,183,180.20$1,271,158,167,126.70$599,702,865,009.90
09/30/2019$16,809,092,325,171.80$5,910,309,428,261.98$22,719,401,753,433.70$1,203,343,570,253.50-$67,814,596,873.20
9/30/2020$21,018,952,080,385.60$5,926,439,114,229.52$26,945,391,194,615.10$4,225,989,441,181.40$3,022,645,870,927.90
9/30/2021$22,282,900,363,084.70$6,146,018,206,963.91$28,428,918,570,048.60$1,483,527,375,433.50-$2,742,462,065,747.90
 
  • Like
Reactions: Titus Andronicus

Hawgk

HR MVP
Gold Member
Aug 8, 2013
2,011
1,616
113
Trump has more to do with current inflation than Biden has to do with Trump's NPR interview.
Trump definitely has a hand in current inflation, but Democrats used “there is no inflation and if we see it, it will be transitory and we have the tools to fight it” excuse to justify prolonged stimulus, for months after Trump was gone.