Posted on 05/19/2021 8:09:06 AM PDT by SeekAndFind
Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.”
Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money chasing fewer goods. Peter said inflation is going to hit the middle class harder than the pandemic.
Peter said this hot CPI print is a cause for concern and ultimately it is a tax.
It is the inflation tax. And if you look at how much the cost of living went up, measured by the CPI in the first four months of this year, it’s 2%. So, if you triple that to annualized it, we have consumer prices rising at 6% annually. But if you look at the monthly numbers, every month it accelerates. So, if you extrapolate the trend of the first four months of this year for the entire year, you’re going to get a 20% increase in consumer prices in 2021.”
Tucker asked a poignant question. If the value of the US dollar is falling as quickly as the CPI suggests, why would any country want to invest in US bonds? Doesn’t this threaten to cause a shake-up?
Peter said they won’t want to invest. They’ll be selling US Treasuries.
Anybody that can connect these dots is going to be selling US Treasuries. And the problem is there’s a lot of US Treasuries to be sold.”
Peter noted that a lot of people are talking about a shortage of goods.
The real problem is the surplus of money. Whenever you print a lot of money, it’s always a goods shortage because the Federal Reserve can print all the money they want, but they don’t print products to buy with the money. So, we have all this money being printed. We’re not producing a lot. People are sitting at home cashing unemployment checks. This is a tax. It’s an inflation tax, a Biden tax, whatever you want to call it. But when Joe Biden says ‘don’t worry! Only people that make over $400,000 a year are going to have to pay higher taxes to fund all these programs,’ he’s lying. Because every American is going to pay the inflation tax. And it’s going to hit the middle class and the poor the hardest.”
That led Tucker to another poignant question. It’s clear that printing money means more dollars chasing fewer goods. Of course, we’re going to end up where we are today. So, why didn’t the geniuses making these policies anticipate this?
Peter said even the so-called geniuses at the Federal Reserve keep telling us not to worry. According to them, inflation is “transitory.”
But these are the same guys that told us not to worry about the subprime mortgage market. Remember early on, Ben Bernanke said, ‘ Don’t worry about subprime. It’s contained.’ Well, now they’re saying don’t worry about inflation. It’s transitory. Inflation is as transitory now as the subprime market was contained. And this inflation crisis is not only going to be worse than the financial crisis, it’s going to be worse than the pandemic. Because the government’s cure is what’s going to kill the economy, not the disease itself.”
Pay higher wages and learn to code.
The only people who like inflation are those who are holding a huge amount of debt. Let me think. Who’s holding the biggest debt in human history by a large margin...
The Government Class is inflating their way out of their unimaginably massive debt. They don’t care what problems that creates for the people. This is a government of the government, by the government and for the government. Their problems, their fortunes and their bullshit is all that matters to them. The people are nothing but useful slaves to them, that is, as long as they don’t get uppity.
As long as the dollar remains backed by the full faith and credit of the United States Marine Corps, Treasuries will have buyers and the Fed can keep the game going.
Apartment rent already is too high. Imagine how much higher.
And the prices of mobile/manufactured homes jumped, right along with the prices of other homes.
It's all going according to plan: Dems will call for even more subsidized housing, even higher taxes, more monthly "livable income" payments...
Schiff is a perma-bear and has been wrong about every major prediction he has made for the past 10 years, but I am sure that now he is right, LOL.
So inflation is not happening? Should I ignore my lying eyes?
(May 12, 2021) Year-to-Year April 2021 Consumer Price Inflation (CPI-U) surged by 4.16%, its strongest reading since September 2008, up from 2.62% in March 2021 (BLS). Headline CPI-U monthly inflation gained an adjusted 0.77% in April, against a consensus expectation of about 0.2%, having gained 0.62% in March, with annual inflation jumping to a 13-year high of 4.16% in April 2021, versus 2.62% year-to-year inflation in March. That inflation pickup reflected more than just surging Gasoline prices, where seasonally adjusted “Core” inflation jumped by a 39-year-high monthly gain of 0.92%, up from 0.34% in March. “Energy” declined by 0.10% (-0.10%) in April, having gained 5.00% in March, with “Food” up by 0.37% in April, having gained 0.11% in March.The "ShadowStats Alternate CPI-U" numbers above are generally consistent with the chart you provided.Year-to-Year April 2021 ShadowStats Alternate CPI (1980 Base) Inflation jumped to a thirteen-year high of 12.1%, up from 10.4% in March 2021, 9.4% in February 2021 and against 9.1% in January 2021.
The ShadowStats Alternate CPI-U estimate restates current headline inflation so as to reverse the government’s inflation-reducing gimmicks of the last four decades, which were designed specifically to reduce/ understate annual Cost of Living Adjustments. Related graphs and methodology are available to all on the updated ALTERNATE DATA tab above. Subscriber-only data downloads and an Inflation Calculator are available there, with extended details in No. 1460.
yes home prices have jumped, and apt rents have too. I was speaking on the rents, my senior mobile home park lot rent is tied to the CPI. not sure how high the new rent will go in Oct.
Would love to have Freepers invest in my renovation deals (”fix ‘n’ flips”). I pay 10% per annum, and it’s secured by the property itself. My investors get paid before I make a dime. The more investors I have, the more deals I can do. Better than the stock market, in my opinion.
“So what do rich FReepers counsel us to do?”
i’m trying to figure that out right now ... the thing to do is to move out of cash, but the question is then into what?
I’m looking at ETFs for building materials, agricultural materials and base metals ...
Recently, I was looking into parks myself, thinking they’d be more affordable. Still thinking about that option.
Hope your rent isn’t increased too much, if at all.
I do this but the issue was investing in an inflationary environment.
Matthew 25:14-30
My lot rent is over 1k, I am sure it will go up to over 1100 plus water, gas, elect sewer, garbage 1200plus..
Wow, that’s really high. Around here, lot rent runs about $500-$600, and I thought that was high. Those aren’t retirement communities, though.
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