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

Given the driving forces for inflation right now versus the oil shocks and economic woes that spiked inflation in the late 1970s and early 1980s we will not be seeing double digit interest rates perhaps ever.

By 2023 the supply chain mess will slowly be recovering as economies normalize and it will.slowly work itself out like economies always and often do. We are still 6 months away from catching up with supply chain woes that exploded in July through November .

The Covid recession lasted Iike 6 weeks and then demand tripled. This pricing pressure is supporter by global wage growth and booming demand so rate increases will be slow.and drawn out Iike 25 basis points at a time.
 
Supply chain back up at ports is still raging from Asia to Europe to U.S. Freight rates have come down a bit but trucking rates are still high and freight rates are still well above 2020 levels.

If you are buying something shipped or trucked, you are simply going to pay a lot more for it no matter who sits in Washington, D.C.
 
UsualName said:
Your characterization of the inflation is comical. It will pass, the dollar will strengthen and we will move into deflation. The question is what will you do then?
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I dont know what am I going to do. It ain't so comical now, is it PAL?
 
Let me guess, the Stalinists on this forum are all going to claim it is racist, homophobic, transphobic, insurrectionist, white nationalist, white supremacist, Russian disinformation to claim inflation is high.

Imagine how much worst this would be if Jon Manchin did not stand up to Biden's inflationary non-sense.


U.S. consumer prices post largest annual gain in 40 years as inflation becomes widespread

https://www.reuters.com/business/us...anuary-weekly-jobless-claims-fall-2022-02-10/
 
I am paying more for shit buut earning more at the same time.

The real struggle is the poor and lower middle class who pay more for shit but don't earn more which politicians dont care about anyway so why do people think politicians will do anything for them except throw token money at the problem....

This inflation is not because the market is overheating like after the tech or housing bubble....the fed will be super slow to raise rates this time so expect very little this year.
 
Look at the demand for goods and services. Per CPI, Services up 4.6% v commodities up 12.4%.

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El OchoCinco said:
I am paying more for shit buut earning more at the same time.

The real struggle is the poor and lower middle class who pay more for shit but don't earn more which politicians dont care about anyway so why do people think politicians will do anything for them except throw token money at the problem....

This inflation is not because the market is overheating like after the tech or housing bubble....the fed will be super slow to raise rates this time so expect very little this year.
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A combination of factors is benefitting lower wage workers right now. First being big states like California and Florida, along with my beloved NJ, incrementally moving minimum wage to $15 and hour and the labor shortage has made businesses increase wages for staffing (although I’m skeptical the latter will become the norm).

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Inflation will be worse than feared this year, Goldman Sachs predicts
https://www.cnn.com/2022/02/28/economy/inflation-economy-goldman-sachs/index.html

Red-hot inflation in the United States may not cool off this year as much as many hoped, Goldman Sachs cautioned in a new report.

“The inflation picture has worsened this winter as we expected, and how much it will improve later this year is now in question,” Goldman Sachs economists wrote in a client report Sunday night.

Given that uncertainty, Goldman Sachs is raising its inflation outlook. It expects that core PCE inflation, the Federal Reserve’s preferred price metric, will decelerate to 3.7% at the end of this year.

That’s a jump from Goldman’s previous forecast of 3.1% — and almost double the Fed’s goal of 2%.

Goldman also now expects consumer prices, which rose by a near-40-year high of 7.5% on an annualized basis in January, to cool off to 4.6% by the end of this year and 2.9% by the end of next year.

The Wall Street bank said it is “increasingly concerned” about two main inflation risks: inflation expectations and the very strong jobs market.

“The initial inflation surge might have lasted long enough and reached a high enough peak to raise inflation expectations in a way that feeds back to wage and price setting,” the report said. And inflation expectations could rise further from already “very high levels,” Goldman added, if the Russian invasion of Ukraine causes energy prices to spike or disrupts supply chains.

Economists closely watch inflation expectations because if businesses and consumers anticipate prices will keep rising, they will change their behavior and make it a self-fulfilling prophecy.

At the same time, the jobs market is booming, with Goldman Sachs noting the widest gap between available jobs and workers in postwar US history.

The one-two punch of high inflation expectations and a strong jobs market “threaten to ignite a moderate wage-price spiral,” Goldman Sachs said, somewhat reversing its previous assessment that there is little risk of such a spiral.

Given the new inflation forecast, Goldman Sachs said there should be an “easy case” for steady rate hikes at all seven remaining Fed meetings this year. The bank also penciled in an additional rate increase for next year, bringing the 2023 total to four.
 
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