Posted on 08/29/2022 4:10:36 AM PDT by Oldeconomybuyer
JACKSON HOLE, Wyo. (Reuters) - The message from the world's top finance chiefs is loud and clear: rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets.
The complication is that central banks for the most part appear to have only limited control.
For one, high energy prices, a function of Russia's war in Ukraine, is creating a supply shock on which monetary policy has little effect.
Copious spending by governments, also outside central bank control, exacerbates the problem. One study presented at Jackson Hole argues that half of U.S. inflation is fiscally driven and the Fed will fail to control prices without government cooperation.
Lastly, a new inflation regime may be setting in that will keep upward pressure on prices for an extended period.
Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. With the notable exception of the United States, a peak is still months away.
(Excerpt) Read more at msn.com ...
Miminum wage is holding fast at $7.25 hour so we have that going for us. An hours work after taxes won’t even buy a happy meal.
Not sure where you live, but haven’t seen a job posted at minimum wages in years now… $12-13 is probably the lowest hourly of any job on this area I’ve seen
If only there was enough political incentive to actually fix the problem.
But that sweet gov money... while it has no nutritional value is like heroin.
If that were true then raising the minimum wage to $12.00/hr is politically wise. Since doing that is symbolic and not really going to affect anything, right? Why not do that and remove the stigma of the GOP being "Cheap Labor Party"?
Because minimum wage is a political game.
Honestly just treat it like SS and once a year have it auto adjust with COLA and be done with these stupid fights every 5 or 10 years.
Don’t hold your breath though, money men funding GOP want cheap labor, why do you think none were talking about illegals before Trump? They needed the big money donors who wanted the illegals here
That is exactly right.
The energy shortage is entirely due to policy choices made by America, Europe and Japan. They could simply make different choices such as building nuclear power plants, fracking, drilling for oil and mining more coal that would entirely solve the energy shortage.
As for inflation, interest rates will need to go higher and QE will have to be reversed. Government spending will also have to be cut.
Hold interest rates. Lower income taxes and raise tariff rates. Step back and watch the economy shoot up like a rocket.
Re: 9 - Sounds plausible.
But US firms need to make quality stuff - or else. When Wiha screwdrivers rated for high voltage are better quality and have no defects compared to Klein Tools, there’s a problem.
In other words, we get the pain while Biden buys the votes with inflationary government spending.
It is pretty stunning to see that stated on Reuters / MSN. The situation must be worse than I thought. Which is pretty bad. My family is seeing many food staples and very basic food items have doubled in price in a year. Even the smallest increases are 18-20%.
I’m sure it’s purely a coincidental accidental oversight that authors Balazs Koranyi and Howard Schneider neglected to mention anything about the US Treasuries silly little hobby of printing money in record amounts for no particular reason....
Sounds like socialism to me.
It isn’t going to be pretty and it isn’t going to be easy but it has to be done.
The surprise isn’t that we have inflation now. It’s that we didn’t have severe inflation far earlier since the Federal Reserve has been in nearly constant stimulus mode since the 2000 dotcom crash.
[An hours work after taxes won’t even buy a happy meal.]
A day’s wage might buy an UnHappy Meal of an ImpossibleToEat Burger, some bug fries and recycled coffee.
A day’s wage for a measure of wheat and a measure of wheat for a day’s wage. And do not hurt the oil and the wine.
This disaster of wrecking the U.S. economy, crippling farmers all around the world, “green” energy is going to end very, very, very badly. /Captain Obvious
You post of the Federal Minimum wage of $7.25. The Federal Minimum Wage has become an obsolete concept because several states have nullified it by mandating much higher state minimums.
In effect states have abrogated the Federal minimum wage law just as they have abrogated laws on marijuana, sanctuary and other such. By abrogating federal law, states such as California have effectively left the Union.
Formal action is required. Such states must be purged
"In effect states have abrogated the Federal minimum wage law..." not a function of the feds.
"...abrogated laws on marijuana..." not a function of the feds.
"...sanctuary and other such..." if fedgov was doing their delegated duties in protecting the US, there would be no sanctuary city/states.
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