Posted on 01/12/2022 5:55:52 AM PST by Browns Ultra Fan
This is like the Samuel Beckett play “Waiting For Godot.” Except we are waiting for Jerome Powell and The Federal Reserve to do something.
December’s consumer price index (CPI) is out and its a doozy, though expected. The CPI year-over-year (YoY) rose 7% in December.
If we exclude food and energy, CPI rose by 5.5% YoY.
Thanks to Biden’s assault on the energy sector, energy prices are up nearly 50% YoY.
REAL average hourly earnings YoY? It has crashed to -2.32%.
And with 7% inflation, the Taylor Rule model suggests a Fed Funds Target rate of … 17.84%. Bear in mind that the current target rate is 0.25%.
Meanwhile, we are waiting for Godot Powell to start taking action instead of jawboning.
(Excerpt) Read more at confoundedinterest.net ...
Certain equities provide an inflation hedge.
>>...and the stock market is higher today. Go figure.<<
**Certain equities provide an inflation hedge.**
Yes, of course, but broadly higher markets across the segments? Makes no sense considering the threat of rate increases and draw down of fiscal stimulus buoyed by insane inflation data. lol
Somethings amiss.
Don't minimize the anticipation of divided government, the knowledge that the BBB bill is likely dead as is the voter fraud bill.
There is a growing underground cash market with millions of people in this country working for cash, and the same amount fraudulently claiming tax free benefits to live on. House cleaners, pool cleaners, gardeners, tree services, barbers and hairdressers, auto mechanics, picture framers, upholsterers, electricians, irrigation repairs, handymen, these are ones I’ve personally paid cash to in the last year for services. Plus tips for many services that go untaxed. When the gardener is giving me stock tips, something is wrong with the system.
Amazing. Labor is subject to the same laws of supply and demand as any other commodity. There is price point FOR EVRY JOB IN THE USA.
People always avoid confiscatory taxes when better opportunities are available.
You have never managed or ran a business.
I’d rather have Zachary Taylor as POTUS now.
They need to change the way inflation is calculated back to what it used to be. I guess it doesn’t make any difference. People know it is higher every time they make a purchase.
The dims would rather rule over a destroyed country than have someone else be in power.
They are protected and will never feel the pain.
Yup it was always the trouble with the massive lending. No view of a future where rates are not in the basement.
Keynes, Keynes...that rings a bell. Aint he the one who came over here and begged for a loan because the UK was broke?
Yep, they would rather rulers in hell than peasants in heaven.
Inflation itself fuels the US Treasury well.
Note: “Higher than Budget estimates”
2021 Sec Treasury & OMB
Individual income taxes were $2.0 trillion, $339.5 billion higher than the Budget estimate. This difference was the net effect of higher withheld payments of individual income tax liability of $154.1 billion, higher nonwithheld payments of $170.4 billion, and lower-than-estimated refunds of $15.0 billion.
Corporation income taxes were $371.8 billion, $103.3 billion above the Budget estimate. This difference was the effect of higher-than-expected payments of corporation income tax liability of $86.7 billion and lower-than-estimated refunds of $16.6 billion.
Social insurance and retirement receipts were $1.3 trillion, $17.9 billion higher than the Budget estimate.
Excise taxes were $75.3 billion, $1.2 billion above the Budget estimate.
Estate and gift taxes were $27.1 billion, $9.5 billion above the Budget estimate.
Customs duties were $80.0 billion, $4.8 billion below the Budget estimate.
Miscellaneous receipts were $133.3 billion, $1.4 billion below the Budget estimate. This was the net effect of lower-than-expected collections of various fees, penalties, forfeitures, and fines of $4.2 billion; partially offset by higher-than-expected remittances by the Federal Reserve System of $2.8 billion, largely due to lower short-term interest rates and higher earnings as they have increased their asset holdings in response to COVID-19.
Gotta love the “Do as I say, not as I do” crowd.
Joe Biden 1/11/22
“ If car prices are too high there are two Solutions.
You can increase the supply by making more of them
Or you can reduce the demand for them by making American’s poorer. That’s the choice.”
so why do we harp on the working stiff just trying to keep up with property taxes, income taxes, insurance, mortgage and rising costs for food and fuel and household items....
lets face it....we don't have true capitalism...we have crony capitalism with the govt actively working to protect the rich and their minions....
I can't preach this enough but folks NOW is the time to get seeds and canning supplies...
I don’t doubt that. What’s your point?
You have never worked for a living.
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