These statements about transitory inflation are bs, it is INFLATION!
- Thread starter wildchild
- Start date
Another attempt to put a bow on a pig by clueless politicians...
The House of Representatives Monday overwhelmingly approved the most widespread reform to US shipping law in almost a quarter-century.
Biden, with port of Los Angeles as a backdrop, on Friday called for the passage of OSRA 2022 and told container lines, who he blames for pushing up inflation via higher prices, that “the rip-off is over.” Still, a two-year investigation by the FMC didn’t find any signs of collusion among carriers, echoing the message of the agency’s chairman.
But OSRA 2022 doesn’t include any language that would rein in the record container rates that have driven historic profits for the industry. (EDIT ME: Because you cannot tell foreign carriers what they can charge dumbasses)
Now carriers rising freight rates are a huge part of inflation but that is because of supply and demand and not because the U.S. needed some bill to stop that haha
The House of Representatives Monday overwhelmingly approved the most widespread reform to US shipping law in almost a quarter-century.
Biden, with port of Los Angeles as a backdrop, on Friday called for the passage of OSRA 2022 and told container lines, who he blames for pushing up inflation via higher prices, that “the rip-off is over.” Still, a two-year investigation by the FMC didn’t find any signs of collusion among carriers, echoing the message of the agency’s chairman.
But OSRA 2022 doesn’t include any language that would rein in the record container rates that have driven historic profits for the industry. (EDIT ME: Because you cannot tell foreign carriers what they can charge dumbasses)
Now carriers rising freight rates are a huge part of inflation but that is because of supply and demand and not because the U.S. needed some bill to stop that haha
Just to bring this point back, the key metric at the root of inflation remains goods/services demand imbalance…
https://www.cnbc.com/2022/06/14/who...percent-in-may-near-a-record-annual-pace.html
No different than levering massive taxes on energy companies because of "record profits" when these same companies use record profits for CAPEX spend, expansion and exploration (which helps future capacity). Dumb as fucking rocks, these politicians.
The Fed is looking at rate hikes as a sort of “reset” which makes sense in some respects but it still doesn’t fix the above mentioned supply/demand imbalance. This is a gamble, not a risk. Meaning if the manufactured recession doesn’t rejigger the imbalance it will cause needless harm by making an inevitable recession worse.
Anyway, if the Fed is pushing out a 75 bp hike, that’ll do “it.”
Anyway, if the Fed is pushing out a 75 bp hike, that’ll do “it.”
Only thing to bring inflation down is a recession..... otherwise why should companies drop prices if they are selling and making money. Consumers will not stop buying (especially with more buying power) as long as prices stabalize even if they dont drop. But to cut the legs out we need a contraction so that demand slows, and supply reducs and the burden on the supply chian lifts and power returns to the consumer. Betting on 2023 for this.
When it comes to food and rent or other highly inelastic things (medical, etc), you might not see any noticeable price drop, even during a recession. Other things like plane fares, or autos...yep.
Retail sales down as consumers move from over consuming goods to services like air travel… muy bien
https://www.marketwatch.com/story/u...and-trucks-are-sold-11655296900?mod=home-page
https://www.marketwatch.com/story/u...and-trucks-are-sold-11655296900?mod=home-page
