Inflation Slows A Little (Core PCE Price Growth 4.6% YoY) In February, But Remains High Despite Fed Withdrawal (Is US A Failed State?)

Confounded Interest ^ | 03/31/2023 | Anthony B. Sanders

[Kaiser8408a]

Inflation is slowing just a little. But my feeling about The Fed (that partly caused the problem in the first place by keeping rates too low for too long (TLTL) under Yellen is all I can do is laugh.

The US Core Deflator (Personal Consumption Expenditure CORE PRICE Index YoY fell only slightly in February to a still-high 4.6% in February despite The Fed jacking up interest rates and slowing M2 Money growth.

I thought Biden and Congress passed the inflation reduction act??

I forgot. Under Obama/Biden, the US is now a failed state. Or a banana republic without bananas. Way to go Joe!

[Kaiser8408a]

Biden (and Obama) have turned the US into a failed state. Or a banana republic without bananas.

[adorno]

The the only thing that goes down might be the rate of inflation, but the prices of everything remain high.

[Chgogal]

Read my tagline. I predicted this two plus years ago.

[Leaning Right]

> The the only thing that goes down might be the rate of inflation… <

The key word there is “might”. Any statistic involving the government is probably a lie. The only question is how big a lie.

[Starboard]

“Any statistic involving the government is probably a lie.”

************

Right. And they only tell us what they want us to know.

[dfwgator]

[Starboard]

Keep any eye on oil. There’s a good chance prices will rise going into summer. If that happens the cost of everything will be affected and inflation will start ticking back up.

[Starboard]

Ever notice how the government quietly "adjusts" their bogus numbers in steps to soften the impact of troublesome data?

They do this all the time. It enables them to massage the numbers to their liking now and revise them to reflect reality later, after the political impact of negative news has passed.

[Salman]

History of inflation as I perceive it:

High inflation of the 1970s was caused by incompetent economic central planning.

Nixon tried reigning it in with wage and price controls. Nope.

Ford tried positive thinking. Whip inflation now!

It hit hardest under Carter because that's when the economy started contracting ("stagflation") and the oil crisis hit.

But through it all, it was still a question of incompetent central planning.

Reagan toned down central planning in general and the Fed instituted tight money policies. The economy took another hit but the currency stabilized and the economy recovered. Prosperity.

GHW Bush a continuation of Reagan's policies.

Clinton. Say what you will about his many crimes, he didn't mess with the stability of the currency and even balanced the budget.

GW Bush couldn't get a balanced budget after 9-11, but he didn't mess with the stability of the currency.

Obama. Lots not to like, but he didn't mess with the stability of the currency.

Trump. Also didn't mess with the stability of the currency.

Now?

This: Deliberate inflation as a way of cheating creditors and a weapon of class warfare. Very different from what we faced in the 1970s.

[dfwgator]

People blame Trump for the midterms, but the fact is the media did a good job of convincing the sheeple that the worst was over and the economy was starting to turn around.

[Starboard]

The media is the wind behind the sails of the Democrat ship.

[adorno]

The key word there is “might”.

I used the word 'might' for a reason; I choose my words wisely.

But, the more important thing is the actual prices that people pay. Even if inflation went down to zero, the prices of everything that went up during inflation, will remain high and they don't go down as inflation goes down. Thus, if a pound of meat went from $3.00 to $5.00, it will remain $5.00 or even go higher. Lower inflation does not mean that prices will go back to what they were before inflation went up. If the average price of groceries went up 13% from inflation, they will be 13% or higher after inflation slows.

[Nifster]

Since the state is now going after its opponents I’d say yes

[Nifster]

Since the state is now going after its opponents I’d say yes

[Starboard]

“Lower inflation does not mean that prices will go back to what they were before inflation went up.”

************

Higher inflation just sets a new benchmark for the price.

People who believe that prices will fall back (and there are a lot of them) are going to experience some financial surprises ahead.

[RckyRaCoCo]

Prices started to abate a little, but have recently been climbing again.(Fuel+.30/Food-eggs +.50)

[Leaning Right]

> But, the more important thing is the actual prices that people pay. <

I totally agree. And that’s something the liberal news media would rather we not consider. Mr. Biden is slowing the rate of inflation. Hurray for Mr. Biden!

Well, no. As you noted, it only means that the high, inflated prices will remain high.

[Starboard]

Since the state is now going after its opponents I’d say yes

************

Kind of hard to have a representative form of government when the government acts to suppress opposing voices. Just saying.

[Nifster]

Precisely

[.44 Special]

Jes, we have no bananas...
‘N no chicken, beef, pork, wheat, beer, moonpies, scratchins, whitebread, baby formula, eggs, motor oil, or Hostess Ho-Hos. At this point I’d settle for a Nehi and a Tootsie Roll.