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To: Jacquerie

Gas prices were blunted due to the unprecedented release of our strategic reserves. That will slow down after the election and is already receding. Prices are creeping back up in California and other states. Also, huge pay increases like the newly signed rail workers 25% raises will further feed inflation, particularly as workers at other places demand equal raises. Lastly, Fed ex just raised 2023 shipping rates the highest ever, over 6%, which will also feed inflation pressure as others raise as well. The only hope we have is for the Fed to continue raising rates, for republicans to win the house and senate in November, and (this is a biggie) for those republicans to stop spending like RINOS to reign in the Government growth. These RINOs haven’t been fiscally restrained for years.


8 posted on 09/28/2022 2:57:30 PM PDT by Nicojones
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To: Nicojones
Also, huge pay increases like the newly signed rail workers 25% raises will further feed inflation...

These actions do not cause or feed inflation. They are a response to inflation by groups who have enough clout to resist.

Real inflation, which includes things like food, medicine, heating, cooling, and transportation costs is a lot closer to 20% than the official claim of 8%. And those railroad workers who get 25% increases are going to get reamed by income taxes. Just about everybody is falling behind, no matter what they do.

Inflation is now caused primarily by bank lending to the government (Treasury bonds) to fund spending in excess of incoming tax revenue. This is equivalent to printing money without the cost of printing. The funds are conjured out of absolutely nothing by the magic of fractional reserve banking and debt-based economy.

Unless there are substantial productivity gains, the new currency bids up prices for goods and services. The winners are the governments who have more funds to claim against the economy and the first-tier central bankers, who rake off a percentage of each new issue.

The losers are the producers, and anyone saving cash. But they never seem to catch on, so the game continues.

16 posted on 09/28/2022 3:49:51 PM PDT by flamberge (Those who pose the greatest danger to you are living within five miles of you.)
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