These statements about transitory inflation are bs, it is INFLATION!

smallfil said:
Where Joe Biden got it wrong 100,000% is his war on oil. He keeps doubling down, putting more regulations, making it hard for oil drillers to make any profits. In addition, he is having the DOJ investigate oil companies for price gouging? Oil is highly inflationary for Joe Biden the buffoon not to know it. Where does aviation fuel, diesel, asphalt, gas for your car come from? When the price of oil rises, inflation is not far behind. That extra cost will be passed on down by the various businesses affected. Businesses will not absorb the extra cost----just for the heck of it and lose monies in the process. A Ralphs VP said it used to cost them $7,000 for one container van of groceries delivered to one Ralphs supermarket branch, now the same shipment costs $19,000. So, is it a wonder that food prices are going thru the roof?
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Too many dollars printed in too short a span of time and you end up with increasing demand and diminishing supply. You can't simply remove those dollars efficiently so traditionally the fed has devalued hard assets (your home) by modulating interest rates.

The Fed has eschewed raising rates since about 2004 but now they are faced with inflation pressure and have no choice. They must raise or we will have hyperinflation. Even then there will be lots of carnage and unanticipated outcomes. It seems like they want to raise rates at the same time they are trying to force some ill-conceived transition to "green" energy.... on the heels of a pandemic and with extant supply chain disruptions.

This is gonna get ugly.
 
Snarkhund said:
Too many dollars printed in too short a span of time and you end up with increasing demand and diminishing supply. You can't simply remove those dollars efficiently so traditionally the fed has devalued hard assets (your home) by modulating interest rates.

The Fed has eschewed raising rates since about 2004 but now they are faced with inflation pressure and have no choice. They must raise or we will have hyperinflation. Even then there will be lots of carnage and unanticipated outcomes. It seems like they want to raise rates at the same time they are trying to force some ill-conceived transition to "green" energy.... on the heels of a pandemic and with extant supply chain disruptions.

This is gonna get ugly.
More...

I certainly do not agree with your take on the cause of inflation but I do agree it’s going to get ugly for bit.
 
The Biden effect is real
And he’s dragging congressional Democrats down with him

Over the past few weeks, Democrats seem to be having a revelatory experience, discovering that simply increasing demand through government spending doesn’t work if there are limited products to buy. The supply side of the capitalism equation is essential, and when government layers on excessive regulations, it holds back business and slows the production of goods.

The inability of the Biden administration to both create a constructive environment for producers and a dependable, efficient supply chain to get goods to market has produced the worst inflation in 40 years.

Without supply, all increased demand does is increase prices. This administration needs to focus on fixing the supply side of the economy. But instead, Biden tweeted Friday, “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.”

So, his solution to inflation is to increase taxes on businesses, who will then pass those costs on to consumers. Sounds like a recipe for higher inflation.

Biden’s head-scratching tweet sparked a bigger reaction than the White House probably expected when one of the Democratic Party’s biggest boosters, billionaire Jeff Bezos, owner of The Washington Post, tweeted back, “The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead.”


Bezos went on, “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.” Ouch. But it got worse.

Two days later, Bezos took to Twitter again: “The administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves. Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.”

By Monday, it was the new presidential press secretary, Karine Jean-Pierre, in the hot seat over Biden’s tweet when Fox News’ Peter Doocy asked her how taxing corporations translates into lower inflation.

Jean-Pierre served up a classic word salad that ignored the president’s focus on taxing corporations and instead leveled her sights on the rich: “Look, we have talked about … this past year, about making sure that the wealthiest among us are paying their fair share, and that is important to do.”

She went on, “So I think we encourage those who have done very well, especially those who care about climate change, to support a fairer tax code that doesn’t charge manufacturers, workers, cops, builders a higher percentage of their earnings than the most fortunate people in our nation, and not let that stand in the way of reducing energy costs and fighting an existential problem, if you think about it, that is an example. To support basic collective bargaining rights as well.”


Note that she avoided Doocy’s question, and for good reason — increasing taxes on business will increase the prices they charge, not lower them.

But Team Biden seems intent on ignoring well-founded criticism even from the Democratic fold. In February, Democratic economist Steven Rattner warned in The New York Times, “The bulk of our supply problems are the product of an overstimulated economy, not the cause of it. … It’s a classic economic case of ‘too much money chasing too few goods,’ resulting in both higher prices and, given the extreme surge in demand, shortages.”

In March, when Biden kicked off his blame game to explain newly released 7.9 percent inflation numbers and growing shortages, Rattner scoffed at the president’s argument that Putin was the real culprit along with the supply chain, greedy corporations and Republicans.

Rattner weighed in again, tweeting, “Well, no. These are Feb #'s and only include small Russia effect. This is Biden’s inflation and he needs to own it.”

Even former Treasury Secretary Larry Summers tried to pump up Biden but ended up doing the president little good with his tweet Monday supporting the idea of raising taxes that are “as progressive as possible.”


Summers wrote, “I say this even though I have argued vigorously that excessively expansionary macro policy from the [Federal Reserve] and the government have contributed to inflation. I have rejected rhetoric about inflation caused by corporate gouging as preposterous.” So much for the greedy corporations narrative.

Weeks of Biden’s disingenuous statements on inflation are now costing him precious capital with voters. In NBC News’ latest poll, released Sunday, people said the country was going off on the wrong track by a margin of 75 percent wrong track to 16 percent right track. Biden himself sunk to a new low in the poll, with a 51 percent negative rating to 37 percent positive.

But we’re beginning to see the Biden effect extend beyond the president’s own unpopularity to both congressional Democrats and the federal government itself. The poll found that Democrats in Congress are down 19 points in their net negative rating, which, according to NBC, is the highest net negative rating Democrats have received “in the 30 years that the poll has been conducted.” Not a good harbinger for the upcoming elections.

On top of that, confidence in the federal government to manage the nation’s challenges has also taken a beating. It started with a lack of COVID-19 tests, followed by shortages of everything from paper towels to cars to chicken and now baby formula, an embarrassing exit from Afghanistan, the negative effects of an open border, and inflation. The list is a long one.

In a survey done by The Winston Group for the S Corporation Association, we found the brand image of the federal government at an unbelievable low, with almost 2-to-1 negatives — 33 percent favorable to 59 percent unfavorable. It is even worse among independents, at 24 percent favorable to 68 percent unfavorable.


This puts the feds at the bottom behind Pelosi, Biden, Trump and both parties in Congress. Still, in the end, it is the president tasked with running the federal government, and if it is failing in its mission, so is the manager in chief.

It is hard to see a way out of the hole this president and his party find themselves in without a significant change in policy direction. But to listen to Biden over the past week, staying the course seems to be the operative strategy.

The Biden effect is real and not what the country needs.
 
Tsing Tao said:
The Biden effect is real
And he’s dragging congressional Democrats down with him

Over the past few weeks, Democrats seem to be having a revelatory experience, discovering that simply increasing demand through government spending doesn’t work if there are limited products to buy. The supply side of the capitalism equation is essential, and when government layers on excessive regulations, it holds back business and slows the production of goods.

The inability of the Biden administration to both create a constructive environment for producers and a dependable, efficient supply chain to get goods to market has produced the worst inflation in 40 years.

Without supply, all increased demand does is increase prices. This administration needs to focus on fixing the supply side of the economy. But instead, Biden tweeted Friday, “You want to bring down inflation? Let’s make sure the wealthiest corporations pay their fair share.”

So, his solution to inflation is to increase taxes on businesses, who will then pass those costs on to consumers. Sounds like a recipe for higher inflation.

Biden’s head-scratching tweet sparked a bigger reaction than the White House probably expected when one of the Democratic Party’s biggest boosters, billionaire Jeff Bezos, owner of The Washington Post, tweeted back, “The newly created Disinformation Board should review this tweet, or maybe they need to form a new Non Sequitur Board instead.”


Bezos went on, “Raising corp taxes is fine to discuss. Taming inflation is critical to discuss. Mushing them together is just misdirection.” Ouch. But it got worse.

Two days later, Bezos took to Twitter again: “The administration tried hard to inject even more stimulus into an already over-heated, inflationary economy and only Manchin saved them from themselves. Inflation is a regressive tax that most hurts the least affluent. Misdirection doesn’t help the country.”

By Monday, it was the new presidential press secretary, Karine Jean-Pierre, in the hot seat over Biden’s tweet when Fox News’ Peter Doocy asked her how taxing corporations translates into lower inflation.

Jean-Pierre served up a classic word salad that ignored the president’s focus on taxing corporations and instead leveled her sights on the rich: “Look, we have talked about … this past year, about making sure that the wealthiest among us are paying their fair share, and that is important to do.”

She went on, “So I think we encourage those who have done very well, especially those who care about climate change, to support a fairer tax code that doesn’t charge manufacturers, workers, cops, builders a higher percentage of their earnings than the most fortunate people in our nation, and not let that stand in the way of reducing energy costs and fighting an existential problem, if you think about it, that is an example. To support basic collective bargaining rights as well.”


Note that she avoided Doocy’s question, and for good reason — increasing taxes on business will increase the prices they charge, not lower them.

But Team Biden seems intent on ignoring well-founded criticism even from the Democratic fold. In February, Democratic economist Steven Rattner warned in The New York Times, “The bulk of our supply problems are the product of an overstimulated economy, not the cause of it. … It’s a classic economic case of ‘too much money chasing too few goods,’ resulting in both higher prices and, given the extreme surge in demand, shortages.”

In March, when Biden kicked off his blame game to explain newly released 7.9 percent inflation numbers and growing shortages, Rattner scoffed at the president’s argument that Putin was the real culprit along with the supply chain, greedy corporations and Republicans.

Rattner weighed in again, tweeting, “Well, no. These are Feb #'s and only include small Russia effect. This is Biden’s inflation and he needs to own it.”

Even former Treasury Secretary Larry Summers tried to pump up Biden but ended up doing the president little good with his tweet Monday supporting the idea of raising taxes that are “as progressive as possible.”


Summers wrote, “I say this even though I have argued vigorously that excessively expansionary macro policy from the [Federal Reserve] and the government have contributed to inflation. I have rejected rhetoric about inflation caused by corporate gouging as preposterous.” So much for the greedy corporations narrative.

Weeks of Biden’s disingenuous statements on inflation are now costing him precious capital with voters. In NBC News’ latest poll, released Sunday, people said the country was going off on the wrong track by a margin of 75 percent wrong track to 16 percent right track. Biden himself sunk to a new low in the poll, with a 51 percent negative rating to 37 percent positive.

But we’re beginning to see the Biden effect extend beyond the president’s own unpopularity to both congressional Democrats and the federal government itself. The poll found that Democrats in Congress are down 19 points in their net negative rating, which, according to NBC, is the highest net negative rating Democrats have received “in the 30 years that the poll has been conducted.” Not a good harbinger for the upcoming elections.

On top of that, confidence in the federal government to manage the nation’s challenges has also taken a beating. It started with a lack of COVID-19 tests, followed by shortages of everything from paper towels to cars to chicken and now baby formula, an embarrassing exit from Afghanistan, the negative effects of an open border, and inflation. The list is a long one.

In a survey done by The Winston Group for the S Corporation Association, we found the brand image of the federal government at an unbelievable low, with almost 2-to-1 negatives — 33 percent favorable to 59 percent unfavorable. It is even worse among independents, at 24 percent favorable to 68 percent unfavorable.


This puts the feds at the bottom behind Pelosi, Biden, Trump and both parties in Congress. Still, in the end, it is the president tasked with running the federal government, and if it is failing in its mission, so is the manager in chief.

It is hard to see a way out of the hole this president and his party find themselves in without a significant change in policy direction. But to listen to Biden over the past week, staying the course seems to be the operative strategy.

The Biden effect is real and not what the country needs.
More...

It’s a good argument the only problem is that it is wrong. If money supply through stimulus was the key driver of inflation how do you explain this:

68C270BE-1562-4384-AB65-DCA38F06136F.png
 
UsualName said:
It’s a good argument the only problem is that it is wrong. If money supply through stimulus was the key driver of inflation how do you explain this:

View attachment 284982
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Um...because the EZ also injected a shit ton of stimulus into the economy during COVID?

On 23 April 2020, EU leaders decided to work towards establishing an EU recovery fund aimed at mitigating the effects of the crisis. They tasked the European Commission to urgently come up with a proposal, which would also clarify the link between the fund and the EU's long term budget. The proposal, a recovery plan for Europe, was presented by the European Commission on 27 May 2020.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic.

Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion.

The European Parliament and the Council reached a preliminary agreement on the package on 10 November 2020. The European Council on 10-11 December 2020 addressed the concerns raised on the agreement and cleared the path for the recovery package to be adopted.​
 
Last edited:
UsualName said:
I don’t think the Europeans did stimulus so much, perhaps you can share. Their main program during Covid was supportive of businesses to keep employees on furlough at 75% of wages. You can see consumption differences here:

fig3_private_consumption1.png


But fine, what about global inflation:

https://www.reuters.com/business/gl...igh-wrecked-supply-chains-persist-2022-04-28/
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I just shared - sorry, someone came in the office before I could edit it.

On 23 April 2020, EU leaders decided to work towards establishing an EU recovery fund aimed at mitigating the effects of the crisis. They tasked the European Commission to urgently come up with a proposal, which would also clarify the link between the fund and the EU's long term budget. The proposal, a recovery plan for Europe, was presented by the European Commission on 27 May 2020.

On 21 July 2020, EU leaders agreed on a €750 billion recovery effort, Next Generation EU, to help the EU tackle the crisis caused by the pandemic.

Alongside the recovery package, EU leaders agreed on a €1 074.3 billion long-term EU budget for 2021-2027. Among others, the budget will support investment in the digital and green transitions and resilience.

Together with the €540 billion of funds already in place for the three safety nets (for workers, for businesses and for member states), the overall EU's recovery package amounts to €2 364.3 billion.

The European Parliament and the Council reached a preliminary agreement on the package on 10 November 2020. The European Council on 10-11 December 2020 addressed the concerns raised on the agreement and cleared the path for the recovery package to be adopted.
​
As for Global inflation, when China, the US and the EU blast their economies with a firehose of fiscal stimulus, it has wide reaching effects everywhere else.
 
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