How much you wanna bet this turns out like that "the check's in the mail" kind of thingy?
"Inflation has risen largely due to transitory factors" -- J. Powell
- Thread starter Scataphagos
- Start date
Inflation will be just as transitory as low Fed fund rates and Biden's massive spending plan.
One could have a lot of fun with a statement such as:
"Inflation has risen largely due to transitory factors".
Perhaps later, I will delve into it. Biden’s address to Congress tonight should provide some interesting quotes as well.
The official inflation rate is a cover for government deficit spending. Expect no veritas in any regard of what the government says it is. They want the sheeple to "swallow it, hook line and sinker", regardless of the facts.
Largest portion of inflation right now is coming from supply chain squeezes on Asian exports leading to shortages of containers and lack of space on ships going to Europe and U.S.
Example... freight rates from Asia to U.S. which were in the $2000 to $3000 per 20' container end of last year are now going to reach $13,000 per container. Imagine you have 20MT of products in a container your freight cost went from $150/MT to $650/MT. Due to the huge backlog of containers at U.S. ports for example, trucking and rail rates also surged as demand far outstripped space and number of trucks. An importer or someone moving goods from CA to TX for example is paying a huge logistics surcharge unlike any I have seen in 20 years or so.
Manufacturers and importers were absorbing the initial price increases but now it is being passed on to the consumer in a big way. This is not some magic thing that is because of biden as partisan hacks who know nothing of global economics.
SInce most of our goods come from overseas and/or transported inland over great distances, these freight costs are pushing prices on EVERYTHING.
Global demand post COVID has continue to surge and just as we hit the summer the back to school and Christmas import demand surges begin and this will continue until Q1 2022.
I cannot believe how this is not being covered but if you read the Journal of Commerce or other trade magazines the situation is serious. Even if something is put together in the U.S., getting parts overseas is backlogged and costing a ton of money.
Why do you think inflation was normal and then all of a sudden jumped in 1 quarter???? because of this surge in freight rates and passing on the costs to consumers. Talk to a business that imports and ask them about passing on costs from logistics.
Example... freight rates from Asia to U.S. which were in the $2000 to $3000 per 20' container end of last year are now going to reach $13,000 per container. Imagine you have 20MT of products in a container your freight cost went from $150/MT to $650/MT. Due to the huge backlog of containers at U.S. ports for example, trucking and rail rates also surged as demand far outstripped space and number of trucks. An importer or someone moving goods from CA to TX for example is paying a huge logistics surcharge unlike any I have seen in 20 years or so.
Manufacturers and importers were absorbing the initial price increases but now it is being passed on to the consumer in a big way. This is not some magic thing that is because of biden as partisan hacks who know nothing of global economics.
SInce most of our goods come from overseas and/or transported inland over great distances, these freight costs are pushing prices on EVERYTHING.
Global demand post COVID has continue to surge and just as we hit the summer the back to school and Christmas import demand surges begin and this will continue until Q1 2022.
I cannot believe how this is not being covered but if you read the Journal of Commerce or other trade magazines the situation is serious. Even if something is put together in the U.S., getting parts overseas is backlogged and costing a ton of money.
Why do you think inflation was normal and then all of a sudden jumped in 1 quarter???? because of this surge in freight rates and passing on the costs to consumers. Talk to a business that imports and ask them about passing on costs from logistics.
Just-in-Time-Delivery isn't quite finished trying to kill us yet.
Those shipping costs and scheduling uncertainties propagate into the economy in ways that aren't completely clear yet because we haven't seen anything like this in the industrial age.
I guess I just experience inflation more directly because I'm buying marine plywood and resins etc and prices for those have exploded. I notice inflation at the grocery store but its just anecdotal. Gas went up a little here but nothing crazy.
My wife states that costo food runs that used to cost 400 about 2 years ago here in San Diego are now 600 or more. (and I have heard others share similar analysis.)
I have noticed that a burgers at fast food burger places are up at 20 percent or more in the last 2 years. (not "in and out" but others)
I have noticed that a burgers at fast food burger places are up at 20 percent or more in the last 2 years. (not "in and out" but others)
Not all shipping costs are universal and producers still have to be competitive with their price points if they want to stay in business. What may happen is a lot of goods just end up sitting, collecting dust at the ports too.
We saw a large jump in Q1 because it is a YOY measurement and the previous year’s Q1 was a deflationary quarter. I think a lot of people took the headline, are pissed at their grocery bill and can’t get passed the inflation monster.
It’s my opinion and I think you’re a considerate person but I’m just saying I think a lot of people are looking for things to go one way and they are going to go another. Also, deflation in a lot of ways can be much worse than inflation.