Posted on 07/13/2022 7:20:45 AM PDT by tanstaafl.72555
U.S. consumer prices in June accelerated at the fastest annual pace since November 1981.
(Excerpt) Read more at finance.yahoo.com ...
Numbers out this a.m. Inflation OFFICIAL numbers (they changed the way they calculated it) is over 9% yearly. If they went back and calculated it the way they did in Jimmy Carter's day, the rates would be over 15%. a couple of thoughts:
1 This has come on VERY rapidly. I remember people I trust saying (and I parrotted them, of course!) that the very act of delaying the correction would make it more rapid and intense, once it "got away from them" It looks like they were right
2 The last time inflation was this bad, we literally had to RUIN the economy to get it under control. Paul Volcker (chairman of the fed) raised rates to twenty per cent. and just left them there. You have no idea what kind of economic agony this created. You had to be there. I was in a relatively isolated part of the country (Boca Raton FL was very wealthy and was prosperous enough that lots of the populace were "above" this), but EVERY day it seemed I met plumbers, electrician, painters, carpenters, accountants, engineers, etc etc etc who just closed up shop in NY, MD, NJ and all of New England and just moved to Boca to try and find work. One guy who had been a plumber and running 8 trucks with a LARGE payroll just walked away, gave his equipment, home, trucks, buildings... everything, to the bank and came down; He was roughing in residential plumbing in an entry level job. When asked "why?" he siply said "there was no work. simple as that."
3 I hear talk in here and around the internet, largely repeating the talking heads on CNBC, that the initial downturn will "stop" inflation leading to a turnaround. Let me be clear. THE STRENGTH OF THE JOB MARKET DID NOT CAUSE INFLATION. This myth about money velocity being the root cause (rather than a result) of inflation is a horrible lie. Inflation will continue if we see a plunging job market.
How do I know that? BECAUSE I AM OLDER THAN YOU AND HAVE SEEN THIS BEFORE (if you are the one asking that question). It was worse than an attached tick (inflation) and is going to take drastic measures to get rid of it.
The reason why I believe we will, instead get hyperinflation (almost definitely) and war (probably/maybe) is based on one thing only. It takes moral fortitude to say "this may destroy my career but it is the right and needful thing to do." We had SOME of that in leaders in the 70s. It is all but evaporated. When the howls and predictions of doom and squealing that "YOU ARE KILLLING THE COUNTRY WITH THESE ***** INTEREST RATES!" come (and they did, and they will), this crowd will fold like wet tissue paper and go back to the feel good fix of printing money. My prediction is that the consequent insane rise in prices will cause them to go lurching about for a nice tidy little war to focus the attention of what Doug Casey calls "boobus americanus," who never met a flag he could not wave, nor a war he could not lustily send poor people's kids off to fight.
Me? I am still buying silver and gold, and am in more of a rush to become as independent as possible. There are a million things to do here, but I am trying to remember that God watches over His people. No need to panic. At a minimum I would counsel to 1) get out of debt 2) get out of the city 3) have 5-6 months of food/water 4) learn to grow your own 5) become less dependent on society for energy (lots of ways... I am VERY VERY weak here) 6) have some gold and silver (more is better) 7) have some ammo (again, more is better).
How about our spouses? THEY HAVE TO BE ON BOARD WITH THIS IN SOME MEASURE. When I broached this subject with my wife back in 2007, she got mad at me. It scared her, and she also thought I was bit unhinged. She was just pissed though at the idea that something was coming to upset her world, and our world was already upended by a number of things. I remember her saying "I don't know ANY Christian men who talk like you do about this" She was a National Review quoting, McCain supporting, Free Republic groupie who truly believed the Rs were he good guys and D stood for demonic.
Then came the Free Republic purges, and then Trump, and Q, and a general sense of unease about those Republicans, but when I would say "Trump is right, honey, there is not any real difference in the parties" she would segue into a vision of Trump being the leader of a bunch of "white hats" and were going to use various tactics (including a military coup) to overthrow this mess. When I sneered (never a good tactic) and mocked this, it just caused hostillity --gee, I wonder why!?!?!?!?-- I slowly learned to let her go her own path.
She is now a "we have to become more self reliant with food...., lets investigate this or that about the garden" don't want to spend any money on things other than necessary for survival, think about moving more rural than we are (!!!), we need to get all our money out of the bank... kind of woman. She is very fold of quoting this internet youtube chick PATERA in stating "no one is coming to save you."
All that is to encourage you to 1) be gentle and expect her to react emotionally, maybe with anger, at this "upending" stuff. 2) be patient and realize she MAY wind up where you are (in general) from a totally different path than you took (that part was delightful) 3) this MIGHT be an opportunity for stress to make your marriage stronger (not the normal result) 4) pray with her -not "for" her and definitely not "at" her.. lol... if you don't do that now, it might be a good time to start
Long rant from the CPI numbers this a.m. and consequent market swoon. I think we are headed for very difficult times. I wish the best for each of you.
Dow down 400 and heading south.
I bet 10% is on the horizon. Even with the historically unusual drop in gas prices over the 4th of July weekend, I think prices are going up. I don’t see anywhere that the Biden and Harris administration recognize the problems and are doing anything constructive to solve it.
oops....now down 462
I predict they’ll suspend trading before the end of the day.
I assume these are your thoughts?????
Nothing to worry about, we won’t run out of money, they can and will print more.
What comes next? The liberal media working overtime to either ignore the issue, claim it isn’t as bad as people think it is, or blame it on Republicans, Putin or someone other than the Democrats.
Joek did that.
“I assume these are your thoughts?????”
Yes. The numbers are those of the gov. The “thoughts” —if one can be gracious enough to characterize that unconnected spew that emanates from my neural knob as “thought”— are then yes, mine (smile).
12-20% interest rates coming. I’ve been down this road before and it’s like a Jimmy Carter flashback but worse.
What comes next?
More inflation.
Dims ALWAYS find ways to pocket..I mean spend OPM.
I’ve been lurking on FR for about 20 years, seldom post or engage though. What were the “FreeRepublic purges” you mention in your paragraph 9?
That’s because deep state/NWO elites installed them “NOT” to do anything about it. Intentional, purposeful, deliberate and by design. Just like BO’s terms. Once you realize that fact, it all makes since. They want to destroy America.
Q3 inflation will be “unexpectedly” low as it’s used for 2023 Social security COLA increases.
One of the main reasons gas prices have dropped a little over the last few weeks is Biden has authorized 1 million barrels of oil to be released from the SPR daily for 6 months, which will carry thru until after the November elections. The move is obviously a political move to hold off the worst until after the elections.
The problem is the reductions are small and temporary, 180-200 million barrels released from the SPR will have to be replaced at inflated prices.
If the situation in Ukraine drags on until this fall and into winter, look for major prices increases in gas which effects all other prices.
Probably should be posted as a Vanity Thread then.
“I’ve been lurking on FR for about 20 years, seldom post or engage though. What were the “FreeRepublic purges” you mention in your paragraph 9?”
I would prefer to stay here rather than be nuked, so I will just encourage you to ask around. Has something to do with flying monkeys. All I am going to say (smile).
All the best to you.
thanks. not sure of the official protocol. please feel free to move it.
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