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Inflation.......... ?
- Thread starter Hobo Hilton
- Start date
The money supply shot up in 2020, when Trump was president, and has remained high ever since.
Anybody remember what was happening in 2020?
The results were predictable, but nobody wants to point out the simple truth of what caused it, and nobody seems aware that "prices" are not inflation, which further obscures what is going on.
Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
www.heritage.org
Check out the chart below.
2020 was the year the federal government increased the money supply at the same time that they shut down most economic output.
The effects were felt for years and are still with us.
Look at the pre-2020 and post-2020.
This is not rocket science. If another country did this, and I showed you the chart, and asked you what was going to happen to the cost of groceries in the years on the right hand side of 2020 as compared to the left hand side, what would you say? Nobody wants to give the same answer, however, because it is our country, and politics and bias get in the way of clear thinking.
Anybody remember what was happening in 2020?
The results were predictable, but nobody wants to point out the simple truth of what caused it, and nobody seems aware that "prices" are not inflation, which further obscures what is going on.
Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”
The Real Story Behind Inflation
What do you know about inflation? Milton Friedman famously said: “Inflation is always and everywhere a monetary phenomenon, in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.” Of course, we all know the driver of the quantity of...
www.heritage.org
Check out the chart below.
2020 was the year the federal government increased the money supply at the same time that they shut down most economic output.
The effects were felt for years and are still with us.
Look at the pre-2020 and post-2020.
This is not rocket science. If another country did this, and I showed you the chart, and asked you what was going to happen to the cost of groceries in the years on the right hand side of 2020 as compared to the left hand side, what would you say? Nobody wants to give the same answer, however, because it is our country, and politics and bias get in the way of clear thinking.
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Where I think the rubber is really going to hit the road is in the next 20+ years with retirement folks. Most people in their 40's right now have almost zero savings, almost nothing in retirement, many won't own their own homes, and pensions are basically extinct. The average 401k balance of 45-55 year olds is about $150k, half of Americans have no retirement accounts at all, add to that the massive increase in health issues in both young and older people, and the quality of healthcare tanking because investment groups buying up the medical industry and stripping it for profits, and it's going to get ugly. Medical issues related to cancer and obesity are quickly impacting younger and younger Americans. Cancer rates are skyrocketing for people 30-45. Early onset cancer rates (cancer before the age of 50) is increasing at 1-2% every year.
Then you have all the kids coming out of school with large student debt, no affordable apartment options, and much higher "average" living expenses than most generations. Now a lot of those "living expenses" are personal choice. When I was growing up in the 80/90's almost no one had cell phones, no one was spending $50 a week at a coffee shop, and many appliances/goods/cars were retained (and lasted) much longer. Now the average family has a $200 cable bill, a $200 cell phone bill, streaming bills, xbox subscriptions, amazon and costco memberships, two car loans and they swap cars every 3-4 years, appliances last a handful of years if you are lucky, and they probably spend $100 a week at starbucks or more if they have a couple kids. $1000 phones for every family member every 2-3 years, and new $1000 iPads, $500 smart watches, neither of which anyone wants after 2-3 years. Many families I know with 3-4 drivers are spending almost $300-500 a month just on car insurance. The list goes on and on. A lot of that pain is created by the consumer that over leverages themselves to have toys, and companies have become masters of manipulating customers with social media and all the information they get on individual buying habits, interests, and all that screen time they get to inundate them with ads. Not to even get into how badly the CPI index is manipulated to keep the # they report artificially low. If a base model Honda Civic increases in price $5k, but it gained features/technology compared to the previous model, it doesn't count toward the CPI, same is true for anything with technology. However the reality for the consumer is the cheapest Honda Civic you can buy just got $5k more expensive.
When I moved into my townhouse in 2016 it was valued at $225k, it's current value is just shy of $500k at 1400 square feet, suggested rent is $2500/mo. Most young professionals I know if they are living in an apartment outside a slum without roaches they are paying $2000 a month for a 2 bedroom, and $1500+ for a 1 bedroom. If they want to live downtown, or somewhere nice, it's more. It used to be rent on a nice middle of the road clean apartment was much lower than a mortgage but now they are similar. I just don't see how younger folks are ever going to put enough $ away to buy housing when rent is just as expensive as a mortgage. It's more critical than every for young people to make sure they get a really good paying job, are smart with their budgets, and put money away early on, however it's also become harder to do so.
I'm really thankful I lucked into a really good job, and my grandparents/parents really instilled in me the importance of saving $ early in my career, but even we spend way more than we should on crap.
Then you have all the kids coming out of school with large student debt, no affordable apartment options, and much higher "average" living expenses than most generations. Now a lot of those "living expenses" are personal choice. When I was growing up in the 80/90's almost no one had cell phones, no one was spending $50 a week at a coffee shop, and many appliances/goods/cars were retained (and lasted) much longer. Now the average family has a $200 cable bill, a $200 cell phone bill, streaming bills, xbox subscriptions, amazon and costco memberships, two car loans and they swap cars every 3-4 years, appliances last a handful of years if you are lucky, and they probably spend $100 a week at starbucks or more if they have a couple kids. $1000 phones for every family member every 2-3 years, and new $1000 iPads, $500 smart watches, neither of which anyone wants after 2-3 years. Many families I know with 3-4 drivers are spending almost $300-500 a month just on car insurance. The list goes on and on. A lot of that pain is created by the consumer that over leverages themselves to have toys, and companies have become masters of manipulating customers with social media and all the information they get on individual buying habits, interests, and all that screen time they get to inundate them with ads. Not to even get into how badly the CPI index is manipulated to keep the # they report artificially low. If a base model Honda Civic increases in price $5k, but it gained features/technology compared to the previous model, it doesn't count toward the CPI, same is true for anything with technology. However the reality for the consumer is the cheapest Honda Civic you can buy just got $5k more expensive.
When I moved into my townhouse in 2016 it was valued at $225k, it's current value is just shy of $500k at 1400 square feet, suggested rent is $2500/mo. Most young professionals I know if they are living in an apartment outside a slum without roaches they are paying $2000 a month for a 2 bedroom, and $1500+ for a 1 bedroom. If they want to live downtown, or somewhere nice, it's more. It used to be rent on a nice middle of the road clean apartment was much lower than a mortgage but now they are similar. I just don't see how younger folks are ever going to put enough $ away to buy housing when rent is just as expensive as a mortgage. It's more critical than every for young people to make sure they get a really good paying job, are smart with their budgets, and put money away early on, however it's also become harder to do so.
I'm really thankful I lucked into a really good job, and my grandparents/parents really instilled in me the importance of saving $ early in my career, but even we spend way more than we should on crap.
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- i'm talking my area,, not 'median' don't give a fk about NY and CA screwing it up for the rest of the nation.
- and NO, 200k was not 2003... there were lots of 45 and 65k homes in 2011 during the bubble. (in my area)
- "There has never been a time in history when an average 25 year old could afford a larger than 2500 square foot home" - i never quoted square footage so that's YOU putting words into people mouths.
price of EGGS are DIRECTLY related to inflation
fuel costs
feed costs
Care to explain why eggs were over 7 dollars a dozen the first 2 years into Bidens economy?
Next you'll try to blow smoke our asses and say, that the rising prices of the egg McMuffins from 2 for 2 to 2 for 5 aren't related to inflation
Here's the biggest LOL on the Fk'n planet
"prices" are not inflation
^^ this guy must be a fact checker for Facebook
GTFO
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Well got to give credit to the bird flue chicken cull for 1/2 the problem on eggs.
But ya sack of layer pellets went north and when you toss in some sunflower seeds and maybe some corn mixed in for the winter, those perfect free range mixed breed layers eggs are getting expensive.
Slaughtered all the roosters at once instead of on demand to save feed, less one fine stud.
Beef prices slaughtered or walking are ridicules. Been using scoop of feed per head, fixing to be counting out cubes per head and that's with plenty of grass for now.
Fixing to be all grass fed, amazingly some dumbasses think that's better.
Take a blind taste test and join reality on good beef taste.
I grew up my younger years on grass fed at the farm, 1960's that's what farmers ate .
Kind of like the package of bacon that's only 12 oz. Some of us are not that stupid, we see this shit going on everywhere.
The dems tell the sheep it's normal and good. The Republicans come in, fix it and the fucking sheep are told prices went up since we started selling 1 lb packs of bacon.
The dems need put down hard and fast.
But ya sack of layer pellets went north and when you toss in some sunflower seeds and maybe some corn mixed in for the winter, those perfect free range mixed breed layers eggs are getting expensive.
Slaughtered all the roosters at once instead of on demand to save feed, less one fine stud.
Beef prices slaughtered or walking are ridicules. Been using scoop of feed per head, fixing to be counting out cubes per head and that's with plenty of grass for now.
Fixing to be all grass fed, amazingly some dumbasses think that's better.
Take a blind taste test and join reality on good beef taste.
I grew up my younger years on grass fed at the farm, 1960's that's what farmers ate .
Kind of like the package of bacon that's only 12 oz. Some of us are not that stupid, we see this shit going on everywhere.
The dems tell the sheep it's normal and good. The Republicans come in, fix it and the fucking sheep are told prices went up since we started selling 1 lb packs of bacon.
The dems need put down hard and fast.
right there....
shrinkflation, also known as package downsizing, weight-out, and price pack architecture is the process of items shrinking in size or quantity while the prices remain the same.
can a green beans could feed 4, now it barely feeds two. 16oz, to 14, to 12 (lots of liquid, aka water weight). I dug into the freezer and pulled out a 4 year old stick of sausage from Sams's club. It was 3lbs (4.99), the ones Sam's Club sells today are less than 2 lbs. (price is up to 5.99).
My god, and hamburger prices.. and can I get a Amen on bacon. Yea, we see that shit...
Hell, economy is so bad, they can't even do shrinkflation without raising the prices on the smaller amount.
bravo! this is maybe the best summation of the current and prob future road that i have seen. you describe just what my grands are facing. prob never own as rents are = to mortgage or higher. saving for a down payment impossible because of $5 eggs etc. you point out the stupidity of all the high tech,basically useless toys. correct on cars. i had to get a new one because of a totaled wreck. is a 5 yo nissan loaded with all the digital crap that i don't want or need. you have to buy it as no "stripped" models exist. a good part of the cost is gov mandates and all the rest thrown in because people just can't conceive of finding a place without GPS etc. insurance home,health,auto is huge,even for me as a retiree. i can handle it because i have gotten control of my toy addiction. most young were raised without any such control. agree obesity is now the most common body type and health care is just a DR typing on the comp,pushing the latest meds and referring out anything that requires any work. ie if they can't just blow off or ignore any finding they stumble on to. don't even start on environmental degradation and crime. both seem to be on an unstoppable upward climb. the deteriorated international situation isn't helping.
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