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Jerome Powell said they will let the numbers rise above 2%. We have to pay for all of this somehow. Inflation has been very restrained for the last few years I will admit. I like that, but maybe it is weighing the economy down some. All those Microsoft and Tesla millions don't seem so great now. That sucks. Did you know that Apples net worth is 2 trillion $? Jeff Bezos net worth is just a few bucks under 200 billion. That's another planet than most of us live on.
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If I should die before I wake...great,a little more sleep. -
A little inflation CAN hurt -- it steals your savings.
There is a government trick called "monetizing the debt" -- which means let inflation run out of control. That's been played in many a South American country, and in the Weimer Republic in Germany. A family that by a lifetime of hard work and savings had a comfortable retirement suddenly finds out that due to inflation, they can't afford to feed themselves.
Remember the Rule of 78. Divide the inflation rate into 78 and the result is how long it will take to steal half your savings. During the Carter Administration, inflation reached 14.8%. Your savings would have been cur in half every 5.27 years. -
Powell is pumping money like crazy. That's why the stock market is up, because interest rates are so low, the only place to get returns is by bidding up share prices as a group activity. It's a racket now....borrow cheap, put it in the market. If someone wants to take the risk, there is money to be made. But if it goes down suddenly, then there is a cascade of financial misery.Comment
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The secret to using printing press money is rigorously and ruthlessly enforced wage and price controls-the Third Reich, the Communist Bloc countries. That, and ensuring there's nothing for the people to buy.Comment
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Boy that had me worried, my wife has the money so I guess I am safe!
SamComment
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I bought my house back when Jimmy "peanut brain" was in office. I had to pay 14% interest. After 15 years my principle was still the same so I took out a loan against my stock, payed off the mortgage and all interest paid from that time on (just 3 years) bought more stock thru the company I worked for.Comment
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Weimar had very weak and unstable governments, between its formal establishment in 1919 and 1928 there were 15 cabinets-it was a German version of the Third Republic. Monetizing the debt only worked internally, the foreign debt and reparations had to be paid in real goods or gold marks. Schacht was charged with stabilizing the marks because they realized the hyperinflation was tearing the country apart.Comment
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It is all a rigged turkey shoot. I was juat in a Wal Mart Neighborhood Market and a can of Bush's Chili Beans was $1.38. Last year it was $.69. The store brand was something like $.79. A lot of other things like beef are already past the point where it is affordable for the middle class.
Of course the powers that be are still telling us there is no inflation. They just figure differently than common folks and it is part of the "deep state."Comment
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Dryheat do you really believe that inflation has been restrained for the last few years ?
as a small time self employed business owner {2 business' in fact} my business expenses and TAXES have gone through the roof these past three years and I'm talking Pre Covid
Let the inflation rate rise above 2 % you say ?.... crap... my business expenses have risen 17 % since the man took office .
Close to the point where it is time to wrap it up and retire.... just can't afford to keep workingComment
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Did he say his taxes have gone up? FEDERAL taxes have not gone up -- must be Democrat-sponsored State and City taxes.
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Printing money never works. Money has to be EARNED to have value, and there is only so much work in the nation. Print more dollars, and all that happens is that the value of the dollar falls.Comment
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