EXPLAINER: Why US inflation is so high, and when it may ease

Market Beat ^ | 11/11/2021 | Paul Wiseman, AP Economics Writer

[SeekAndFind]

WASHINGTON (AP) — Inflation is starting to look like that unexpected — and unwanted — houseguest who just won’t leave.

For months, many economists had sounded a reassuring message that a spike in consumer prices, something that had been missing in action in the U.S. for a generation, wouldn’t stay long. It would prove “transitory,’’ in the soothing words of Federal Reserve Chair Jerome Powell and White House officials, as the economy shifted from virus-related chaos to something closer to normalcy.

[AnthonySoprano]

.
It’s going to get worse.

Biden has said they have plans for the rest of they Social Spending, he’s coming back next year. The Debt is mathematically impossible to pay off now, and they only have one trick, Spend Money.

.

[AnthonySoprano]

High Energy Prices aren’t a problem.

[SaveFerris]

Wow 😳😣

People vote for someone who says such stupid things?

(Yes, I know... 😞)

[The MAGA-Deplorian]

Biden, and it won’t. Next retarded question of the day?

[Paladin2]

I’ve never understood why the FED was allowed to set its inflation target at 2% instead of 0%.

Inflation is theft.

[TigerClaws]

This is part of the Great Reset.

Create a huge crisis. Say “capitalism has failed us” and then start seizing assets of those that have more than their ‘fair share’ and disburse it to the illegals (newly minted citizens) who are victims of global climate change.

[adorno]

Inflation. Border crisis. Afghanistan. Spending out of control. Supply chain issues.

None of those are problems. Each is a crisis which democrats welcome of wanted to create.

Democrats believe that, the more crises, the more that people trust them to solve them. So, the Covid-19 crisis and all of the other crises, will continue to exist, because, democrats want them. If a crises doesn’t exist, they will invent them, like they’ve managed to invent the crisis with global warming/climate change.

All of those crises were no problems before democrats decided that they were needed. Most of those crises were under control when Trump was still president.

Now, welcome to the new world order, one where crises are the way of the future.

[pepsionice]

The problem here...is that the recession is being built into a system where the logistical system can’t fit or can’t deliver. So even if you had $1000 for a new refrigerator that you desperately need ‘now’...the shops in town all say it’s a waiting list of 90 days before you get delivery. So you are paying for it, but won’t receive it for 3 months.

This is a unique landscape that the nation has never experienced. I don’t see this resolved in 2022 or 2023. It’ll be the chief topic for the 2024 election.

[NorthWoody]

The saddest and sorriest part of what you said is that a big chunk of people actually believe in that nonsense.

The live their Netflix-and-Starbucks lives with a couple minutes of news per day mixed in, base their beliefs on the crawler on the bottom of the CNN screen, and vote accordingly.

[goodnesswins]

We are doing a remodel...it’s 75% down on the kitchen cabinets...5 months till expected delivery

[TigerClaws]

Good commentary from Tucker tonight on why Dems don’t care about inflation:

https://www.youtube.com/watch?v=zjz-R5MLfEw

[lurk]

As long as they make money out of thin air, inflation will continue.

[Basket_of_Deplorables]

Milton Friedman won the Nobel for proving inflation is proportional to money supply.

Too much “free money” from the fed, based on Congress’ money splurge.

[ARW]

To allow for the expansion of the money supply.

[blackberry1]

Sorry Joe, your energy policies, by design, broke the bank.

The greenies need high energy costs to make their game to work.

Let’s kill the pipeline pronto and get the show on the road.

That jump in oil costs just bottlenecked the entire world of goods and services you dummies.

Buy popcorn now before the price jumps!

[PTBAA]

“I’ve never understood why the FED was allowed to set its inflation target at 2% instead of 0%.”

Inflation is not a bug, it is the point. The Fed was created so that a few connected insiders could rob the rest of us.

[blam]

The Inflation Death Spiral Has Begun: Inflation Hits Stocks, Bonds And Government Like A Bomb Cyclone

[major_gaff]

Yep...money quote from the article.

Furman suggested, though, that misguided policy played a role, too. Policymakers were so intent on staving off an economic collapse that they “systematically underestimated inflation," he said.

"They poured kerosene on the fire.’’

A flood of government spending — including President Joe Biden’s $1.9 trillion coronavirus relief package, with its $1,400 checks to most households in March — overstimulated the economy, Furman said.

So Biden owns at least some of this...the AP authoring this is instructive.

[PIF]

Easy to understand is the 360% increase in the money supply (money the Fed printed whole-cloth) - the more they print, the less the dollar in your pocket is worth : inflation. 360% is the actual rate of inflation.

Understanding that you can understand why the multi-trillion dollar Bills Brandon wants to pass cost nothing : they will simply print the money to cover the difference between their new taxes and the final bill - further increasing the rate of inflation, until a million dollar bill will by a 1/2 cup of coffee