Posted on 06/06/2021 4:17:35 PM PDT by Leaning Right
U.S. Treasury Secretary Janet Yellen said in an interview Sunday that higher interest rates would be “a plus” for policy makers.
Speaking with Bloomberg News following a G-7 finance ministers’ meeting in London, Yellen said it’s OK if President Joe Biden’s $4 trillion spending plans trigger inflation and higher rates.
(Excerpt) Read more at marketwatch.com ...
It’s a huge middle finger to the fixed income folks and anyone else with savings.
Basically it suits Wall Street and the Globalists to destroy our currency.
Darn it, I just knew I was being naive to play by the rules. Even went to get my degree without a loan to be excused someday.
Seriously, inflation will RUIN us retirees. Careful planning or no careful planning.
A "normal environment"? Sorry, I don't prescribe to leftists' definition of normal. They consider abortion normal. They consider little boys cutting off their penises normal. The lefty tyrant Gov. Tommie the Commie talks about a "new normal" all the time. I tell you what. Stop spending like crazy (was going to say like drunken sailor, but that is no longer accurate). Stop printing money. Get the government, laws, regulations out of the way of businesses. And tariff the hell out of trade with the likes of China and China's allies. Then let the market decide.
> Seriously, inflation will RUIN us retirees. <
Some pensions are fixed (no cost of living adjustment). Folks with those kinds of pensions will be in deep trouble.
But some pensions - and social security - have a cost of living adjustment. Folks with those kinds of pensions are also in trouble. And that’s because the government will never, ever report the true rate of inflation.
I’m beginning to think she is as demented as Resident Bidet.
The opposite has been the case. It has been death to savers for a long time. Wall Street, mortgages and other borrowers have been the winners with cheap money. Debt has skyrocketed up during this approach of free money.
Also if you’re getting a ss inflation bump so will your Medicare premium.
High interest rates will force the G’vt to print more money to make it’s interest payments. That will escalate inflation further. The $ you have saved are worth less & less. We do have to raise interest rates slowly to get out of this trap. POTUS Trump had created an American economic growth that would have allowed the gradual unwinding of the debt and the raise to a higher interest rate such as 4-5%.
here’s what to make of it- she’s knows rates are about to take off- she has to sugar coat the coming crap storm somehow
Fixed versus adjusted pensions....
My main pension is not cost of living adjusted. What could I do, refuse it until they replace it with a better one?
Social Security has a phony form of “inflation” that downplays what seniors really spend on. Lower costs for video gamer chairs and skateboards are not for seniors. But food, gasoline, medicine , doctor’s visits, medical tests,(all with friendly yuge Obamacare co-pays) are not in the figure. so “inflation” is a tiny thing.
Interesting article excerpt:
the government collects data on a “market basket” of goods and services. Market basket categories include: food and beverage, housing, apparel, recreation, education, transportation, and medical care. Research has shown that spending patterns differ between the elderly and the general population, especially in the health care category. Seniors 65 and older spend more than twice as much on health care, and those 75 and older spend nearly three times more on health care than younger consumers. Not only do health care expenditures steadily increase with age but health care costs have also consistently risen much faster than other market basket categories. The current price index (CPI-W) does not take these critical differences in the elderly population into consideration.
Additionally, the June 2020 GAO report to Congress questions the reliability of the CPI-W itself because of demographic shifts away from the blue-collar occupations surveyed, such as clerical, sales, laborer and construction jobs, as well as declining response rates to surveys.
Seniors spend a significant portion of their income on out-of-pocket health care expenses not covered by Medicare.
https://www.ncpssm.org/documents/social-security-policy-papers/the-cpi-e-a-better-option-for-calculating-social-security-colas/
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Glenn Beck’s guest estimated 20% inflation today based on the strict rules in the Ronald Reagan years for the exact same items and factoring. 20%! Not 1 or 2%.
> Also if you’re getting a ss inflation bump so will your Medicare premium. <
Oh, crap. You’re right. I forgot about that.
Maybe working at Walmart is in my future. But I’m too old to be carrying boxes around. Maybe Walmart could hire me as a greeter. But I really don’t want to talk to anyone under 50.
Good post. Lots of unpleasant facts there. But it’s something the public needs to know.
I disagree but there is room for dissenting opinions and the future will elucidate the results of policy.
Problem is, too many of you vote conservatively. Message to all of you from the government: Just die.
Good grief, grow up re: f-bomb
Five percent annual interest, Xi, it’s more than before! It’s a great deal - Come on, man!
No, Joe, the Central Committee wants an amount equal to the total government revenue from Orange, Fulton, Montgomery, Westchester and Fairfield counties for the next twenty years to lend you what you want to borrow now.
LOL
Get one of those T shirts "When This Covid Thing Is Over I Still Want Some of You to Stay Away From Me."
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