ECONOMY Inflation speeds up in April as consumer prices leap 4.2%, fastest since 2008

anonymoose said:
Inevitable. Too much worthless borrowed and printed money floating around. I didn’t think it would happen this soon.
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Because it has nothing to do with excess money supply. It has to do with shortage of products. This is not typical inflation, which generally impacts across the board. It is focused in sectors in which there are shortages which drive up prices.
 
anonymoose said:
You really can’t be serious.
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Yes, I am serious. The inflation is happening narrowly in sectors where covid related shortages are occurring. Inflation happens when money supply expands and/or there are a shortage of goods. This inflation is primarily the result of shortages. I get that the Biden bashers will rush to post this without understanding in the least what's behind it. So maybe 'nothing' is hyperbolic, but this isn't a result of expanding money supply. Here are the numbers. I know you will understand them and the Trumptards won't. I can't help that.

https://www.bls.gov/news.release/cpi.nr0.htm

THE largest contributor to the monthly increase wasn't food and it wasn't energy. The largest contributors was used car prices. That has ZERO to do with expanded money supply. It has to do with the fact that a) Used car prices dropped a lot during the pandemic as rental car companies flooded the market, and b) the rental companies are now finding a shortage of new cars and are competing in the used car market.

What else contributed to the increase in April? Cost of housing. Again, the direct result of higher home prices, which is being driven by low interest rates, historically small inventory, no foreclosures, and shortage of building materials.

Point being suggesting this increase in prices is a logical outcome from economic stimulus is simply a false narrative. I don't expect the Trumpers to understand this. It's far too nuanced for their taste. But in fact, this is not inflation due to expanded money supply. It's inflation due to shortage of goods and supply chain issues. So, to respond to your statement, I AM serious.
 
anatta said:
we threw in trillions and trillions without creating more goods and services..no way it would not happen
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This discussion is over your head, Putin boy. I'd suggest a strategic withdrawal. This inflation is due to us creating FEWER goods and services. Next?
 
Concart said:
But in fact, this is not inflation due to expanded money supply. It's inflation due to shortage of goods and supply chain issues.
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Could be you’re correct on this. I know there are shortages of all kinds of stuff in Anchorage.
Like I said I was surprised at how early the onset of inflation.
But the fact is, there is an excess of money supply. I consult with my money manager about every 4 months and he fully expects inflation to kick in but not for at least another year or two.
Whatever, I’m no economist so I don’t pretend to be an expert. But I understand some basic principles.
Money for nothing leads to inflation and a lot of money is being thrown out there.
The difference this time is that all western economies are doing it at the same time. Once again, the overused word
“ unprecedented “.
 
anonymoose said:
Could be you’re correct on this. I know there are shortages of all kinds of stuff in Anchorage.
Like I said I was surprised at how early the onset of inflation.
But the fact is, there is an excess of money supply. I consult with my money manager about every 4 months and he fully expects inflation to kick in but not for at least another year or two.
Whatever, I’m no economist so I don’t pretend to be an expert. But I understand some basic principles.
Money for nothing leads to inflation and a lot of money is being thrown out there.
The difference this time is that all western economies are doing it at the same time. Once again, the overused word “ unprecedented “.
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The kick start of world economies is probably going to lead to some level of inflation. But this is a nuanced discussion. We heard that the 2009 stimulus would lead to hyperinflation. Never happened. Because the Fed did a good job of managing excess reserves, and continues to unwind QE very slowly over a long period of time. The Fed has less control this time. One of the most unique aspects of the pandemic was the change to the savings rate. I'd have to research this, but the reality is that the amount of stimulus that went directly to consumers was largely offset by the MASSIVE increase in the savings rate. People delayed big purchases, so manufacturers of those items stopped making them. That's going to cause bigger ticket items to experience more inflation when that pent up demand starts to be realized. That was going to happened independent of the stimulus.

Point is, this is an incredibly nuanced situation, and one we have zero experience in dealing with. But of course, the JPP geniuses attack the problem with a sledgehammer and a series of incoherent guttural noises. 'Stupid Biden gave everyone money and now inflation is running wild'. Nope. Wrong.
 
Concart said:
The kick start of world economies is probably going to lead to some level of inflation. But this is a nuanced discussion. We heard that the 2009 stimulus would lead to hyperinflation. Never happened. Because the Fed did a good job of managing excess reserves, and continues to unwind QE very slowly over a long period of time. The Fed has less control this time. One of the most unique aspects of the pandemic was the change to the savings rate. I'd have to research this, but the reality is that the amount of stimulus that went directly to consumers was largely offset by the MASSIVE increase in the savings rate. People delayed big purchases, so manufacturers of those items stopped making them. That's going to cause bigger ticket items to experience more inflation when that pent up demand starts to be realized. That was going to happened independent of the stimulus.

Point is, this is an incredibly nuanced situation, and one we have zero experience in dealing with. But of course, the JPP geniuses attack the problem with a sledgehammer and a series of incoherent guttural noises. 'Stupid Biden gave everyone money and now inflation is running wild'. Nope. Wrong.
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Hmm. I’ll have to substitute “nuanced” for ‘unprecedented’. Getting tired of hearing that word.:|
But it’s time to stop handing out free money when businesses aren’t able to hire workers because people make more money doing nothing.
 
ExpressLane said:
Inflation in April accelerated at its fastest pace in more than 12 years as the U.S. economic recovery kicked into gear and energy prices jumped higher, the Labor Department reported Wednesday.

The Consumer Price Index, which measures a basket of goods as well as energy and housing costs, rose 4.2% from a year earlier. A Dow Jones survey had expected a 3.6% increase. The month-to-month gain was 0.8%, against the expected 0.2%.

https://www.cnbc.com/2021/05/12/consumer-price-index-april-2021.html


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The Biden administration is screwing things up faster than I thought they would.:thinking:
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DemoKKKats burned it down, and are now spewing feces in an attempt to excuse what they did.

DemoKKKrats: 21st century Nazis
 
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