Posted on 03/13/2023 2:07:56 PM PDT by blam
So much has changed in just a few days: one week ago people cared about boring stuff like seasonally adjusted payrolls (a product of White House administration propaganda as much as actual data) and the readjusted Consumer Price Index (also a product of White House administration propaganda as much as actual data). Well, nothing like a bank crisis to clear one’s head of goal-seeked data that would make Beijing blush. And also – apparently – there is nothing like a bank crisis to send inflation expectations plummeting.
Earlier today, in breach of today’s data vacuum, the NY Fed published its latest Survey of Consumer Expectations, which showed that inflation expectations collapsed at the 1-year horizon, plunging by 0.8% to 4.2%, the lowest since May 2021…
… and the biggest monthly drop on record for the series! One can only imagine what the read would have been if the poll had taken place after the collapse of SIVB and SBNY.
(snip)
Global Food Prices Slide For Eleventh Month And Could Soon Show Up In Supermarket Savings
Inflation always goes down in a recession. This is the Biden recession because of insane spending. Inflation got out of control and still is, thus the Fed tightened the screws and increased borrowing rates. This caused this recession and we are in one.
ps
The worst thing about the Federal Reserve is that it exists.
Inflation will decrease as unemployment increases. But fully expect inflation to return. The Feb is back to quantitative easing. These Eff’n banks won.
It hasn’t happened yet. I can see disinflation, but no deflation. With prices, we are now on a new permanently higher plateau.
Every time I go shopping, I see disinflation, I see datinflation, I see overthereinflation...
but no deflation. With prices, we are now on a new permanently higher plateau.
There is one way and only one way to bring on deflation, and that would be to flood the market with supply, particularly energy supply but also food supply. Both could happen if the greenies would get their dirty stinkin' hands off of our economic throats.
The two are not mutually exclusive. Think Stagflation.
No. Negative M2 is the surest way to bring on deflation. Think Great Depression when the FED let the money supply drop by a third.
You definitely have a point.
Yes, the new normal as Obami liked to say.
Biden - Think Stagflation
You should start selling them now. After a while no one will be able to afford them.
right, hasn’t the money supply technically fallen year/over-year (even if it’s just by a small amount)?
12 pack of beer that was $13 in 2020 is now a $18.
I was thinking more along the lines of the deflation in the late 1800s, spurred on by the massive increase in supply of goods through manufacturing, along with the increase in farm output and discoveries of oil in TX and OK. The whole issue of printing silver-backed dollars that made William Jennings Bryan so famous was to increase the money supply and stop the deflation.
The 1930 method is more like the operation being successful and the patient dying.
That is where we are headed. Worst of both worlds while the FED tries to save the wealthy as the wealthy and the politicians screw the average Joe. The elite triangle of politicians- FED - wealthy better hope the sheep don’t wake up. Can’t hide from all the sheep. The gun bans didn’t occur fast enough to the sheep into slaves. Now the sheep can decide to become insurgents, if they dare to wake up.
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