Posted on 06/08/2021 1:14:17 PM PDT by blam
Dream? Try nightmare. We've been living a Communist Revolution with the Junta held back by 2 flaky RATs. Things are NOT business as usual. Based on the expansion of the money supply I'm predicting the worst inflation any living American has ever experienced.
I was reading about history, that major world trading societies collapsed every 1500 years or so. In the Bronze Age 3000 years ago there was a collapse of nations trading between Europe, Asia and Africa - the only society that survived were the Egyptians. Happened again when the Roman Empire collapsed. An imminent collapse may happen again, right on schedule.
right?
it’s reality
It is interesting to look at Janet Yellen’s remarks in October, 2019. This is after Trump had been in office almost 3 years. What a contrast to the mess we have today.
“Unemployment declined from about 10 percent in 2009 to 3.7 percent today—a 50 year low. Yet headline inflation over the last year, according to the Federal Reserve’s Preferred Personal Consumption Expenditures (or PCE) measure, stood at only 1.4 percent in August. Core inflation, which excludes volatile food and energy prices, came in a bit higher at 1.8 percent. The current pace is close to that in 2009. Contrast this experience with that during the long expansion of the 1960s. Unemployment declined from 6.7 percent in 1961 to 3.6 percent in 1969. Over the same period, headline PCE inflation rose from just under 1 percent to roughly 5 percent and core inflation increased by a similar amount.”
The article is at this link if anyone cares to read it.
https://www.brookings.edu/research/former-fed-chair-janet-yellen-on-why-the-answer-to-the-inflation-puzzle-matters/
In the Bronze Age 3000 years ago there was a collapse of nations trading between Europe, Asia and Africa - the only society that survived were the Egyptians. >>>. I’m reading a book on that collapse now “1177 bc The year civilization collapsed”
They’re trapped. Raising interest rates means paying more for new national debt. I read that a half point jump would increase their interest payments by many billions.
Current debt is around 28 trillion (I think).
The Gov is paying under 2% interest on the debt.
If they are paying 1.8% interest on 28 trillion debt that means the interest payment per year is bout 503 BILLION dollars.
If the interest rate goes up, it won’t be “just” a few billion dollars more...
>>...time to raise the discount rate by a point or better, with an eye toward 3 points this year.<<
The other side of the coin. Slowing down the housing market and increasing the service load on the national debt.
I think the feds are between a rock and a hard place.
Allowing Government to print money was a terrible idea.
L
still have my Win button....
as for inflation and the general economic picture, seems nobody here is really taking it seriously...
but I have to....finally out of the workforce at age 67 depending on SS and the idea of being forced off my 5 acres because of rising property taxes makes me very ill....
I suspect that our govt class and all its entitled workers and retirees could care less since they are guarenteed just about everything...
I’m in the same boat you’re in. Retired, assuming I was pretty well set, even if just treading water investment wise. We both remember how devastating inflation can be. We’ll see how popular Biden’s regime is when the misery index returns. I remember inflation at 10%, 30 year mortgages at 15+% and unemployment rates at 8+. Biden will blow by all those numbers.
My gallon of milk went up thirty plus cents in a week ... wally world inflation.
globalist and their reset
I recall that time too. Bought our first home at 13% interest rate! Coming of age at that time it felt like it would always just be this way. Loans were expensive and hard to obtain. Jobs were even more difficult to get, but I held down 3 part-time jobs. Getting the home ...we were helped out my the in-laws with the down payment at the time.
But the hard time came and it eventually left.
We are entering a time of difficulty. The post pandemic economic world is realizing their kingdoms are fragile in the face of a major disruption. Much was done wrong out of uncertain necessity as the outcomes are now demonstrating.
The inflationary disruption is upon us. The elite tell us it will be transitory, but not how high it needs to go before it falls back. Will we see 13% interest rates? Or will they simply reset the global currency to digital in order to ‘manage’ the money in the market place.
Believe me, they are looking to reset the currency and runaway inflation is their opportunity. We’ll see more worry-wart articles like this one and wonder how they get out of this mess. But...they already have the plan, their opportunity just needs to look like a crisis and we’re not there quite yet.
I’ll go with ..”they will simply reset the global currency to digital in order to ‘manage’ the money in the market place”..and we all know what that will bring.
And at this point there is very little we can do to stop it.
I believe you’re right about some type of global currency reset. Who knows, this could well be all preplanned. One thing for sure, the American worker and American saver will will be squeezed dry by the process.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.