Posted on 06/11/2022 4:00:14 PM PDT by blam
Two things. Yes they need to raise rates NOW!
But more importantly the federal govt need to stop spending.
17% sounds about right, maybe even higher. I know Eggs are up 32% in one year.
I’m no economist, but I do believe the government spending orgy is a key cause.
What I DO know, is I can’t make 8%+ less this year than I did last year, let alone 12%.
Both options crush the economy. Not sure if one is worse. We are boxed into a corner. The only thing they seems to want to do is let inflation run until they kill demand which will lower prices. It’s going to take a long time and in the meantime, get ready for mass layoffs.
I remember $1.07/dozen eggs at Aldi when Trump was in the White House.
Ah, the good ole days....
As you can attest, I replied to one of your posts many weeks ago and estimated that the actual inflation rate was really about 16% not the phony 7% or 8% they were claiming at the time.
"Missed it by that much."
Yes. Unlike in 1979, when debt/GDP was around 30%, its now around 130%. Long term interest rates at 10% on Fed.gov $30 Trillion in debt (and that's assuming they balanced the budget immediately) would cost Fed.gov $3 TRILLION A YEAR.
Fed.gov currently collects about $3.7 trillion in taxes a year. So obviously, interest rates that high will simply not be allowed
Get used to high inflation. Its how America's socialists will whittle down that massive pile of debt, just like how they do it in Argentina, Bolivia, Brazil, etc....
XD XD
” kill demand”
What does that mean? Do I not eat out (actually don’t do that much), no vacation, no new car or just what?
Yes. I work in purchasing for a small manufacturing and distribution company. I have records on everything we have ever bought for the last 20 years. Before 2020 - I already estimated the rate of inflation was around 6% a year. Things over the last 18 months have been so spikey, I wouldn't even want to guess where inflation rate is now.
Drive through Pimmet Hills west of DC and look for original ~1960 type houses.
Not much of a price originally, and not much of a house either.
If north of the Potomac, Wheaton, Maryland awaits your viewing.
Interest rates need to be higher than Inflation.
Just ask Milton Friedman.
In 1980 I bought a newly built house with a mortgage of 13%. My neighbors had higher at 17%, all new houses.
yeah, the goal is to get everyone else to stop spending so prices will fall.
Any bets on when the Great Depression 2.0 starts?
Answer:
We cannot currently produce taxes at these levels.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.