Posted on 07/15/2022 5:43:05 AM PDT by Browns Ultra Fan
As Americans are painfully aware, inflation is the highest in 40 years prompting The Federal Reserve to remove the massive punch bowl. In fact, Federal Reserve Governor Christopher “Fats” Waller backed raising rates by 75 basis points this month.
How hot was the recent inflation report? The Atlanta Fed’s flexible price index rose to 18.74% YoY. On the other hand, the CORE flexible price index (less energy and food) plunged to 8.46% YoY. The 30-year mortgage rate from Bankrate rose slightly to 5.83% as the implied overnight rate for the July FOMC meeting rose to 3.45%.
Inflation is ravaging consumers with the savings rate falling by -46.3% YoY while consumer credit rose 7.3% YoY. Yes, thanks to high inflation, consumers are saving less and borrowing more.
When even CORE flexible price inflation is 8.40% YoY, you know that The Fed and Federal government have made serious policy errors.
(Excerpt) Read more at confoundedinterest.net ...
“Plunges” to “only” 8.4?
“Plunges” to “only” 8.4?
Yeah... like gasoline “plunged” to “only” $4.75 this week...
So it’s true about the core numbers falling again. I knew things were on the mend when I heard that. NOT!!!! Geez. I wonder how things could have gone so bad in less than 2 years? Maybe CONgress should be trying to figure that out instead of wasting OUR money on 🐎💩. I wonder what could possibly be behind it. At least no mean tweets though. /S
Eliminate the Fed!
That is an easy one. They printed $15 trillion in 2 years. That will do it.
Well, the friggin’ truck missed my house...............
If the number reported next month goes to 9.0, they will call it a significant drop, a “plunge”. Slight fluctuations from month to month do not indicate anything. The long term trend matters.
The administration is a total failure. Raising interest rates slows down expansion. It doesn’t do anything directly for inflation. My authority is Milton Friedman. As long as government keeps creating money and spending money it doesn’t have, there will be monetary inflation.
“Milton Friedman isn’t running the show anymore.” — Joe Biden, 2020
...the CORE flexible price index (less energy and food) plunged to 8.46% YoY.
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Plunged? This is like saying you’ve decreased your speed from 100 MPH to 90 MPH. You’re still headed toward that cliff.
“Milton Friedman isn’t running the show anymore.” — Joe Biden, 2020
—
Explains a lot.
Yes we will remember, they just don’t care about people pursuing the American dream. The only thing that they want is big government socialism and the green new deal is their vehicle.
“Neither is Joe Biden.” -— mywholebodyisaweapon, 2022
Flexible Price Inflation = Salt in KY Jelly
Something NOT being discussed………last Social Security COLA (after half went to Medicare) getting crushed.
Awesome stuff....
“Raising interest rates slows down expansion. It doesn’t do anything directly for inflation. My authority is Milton Friedman. As long as government keeps creating money and spending money it doesn’t have, there will be monetary inflation.”
Good post. Milton Freidman (RIP) won the nobel prize for proving that inflation is almost soley caused by money supply growing faster than productivity. And he’s been proven right all over the world, again and again.
For the same reason, Keynesianism always fails. We’re watching it in real time, for the eleventy gazillionth time. Friedman v Krugman, and Krugman always loses. Bet the farm.
It sucks to be us.
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