https://www.businessinsider.com/us-e...timulus-2021-2

Experts say the price of everything is going to be going up. This is good because it means things cost more while wages stay the same. This means that those that use the newly printed money first have an advantage. Experts say that this inflation is a form of tax on the middle class by taking value from the wealth of those that save, and reducing the cost of debt for those that do not live within their means. More on this after the break

Troubling that the latest "stimulus" COVID plan of 1.9 trillion dollars in the works is not needed anymore. It has the potential to cause painful inflation though which will hit hard most Americans. I thought this a nice article on how the economy is close to returning to normal helped in part by previous stimulus spending.

https://www.billionairesportfolio.com/archives/7180

As another $2 trillion spending package is due to pass the House later today, and move on to the Senate, where it will pass (likely with the help of the Vice President), let's take a look at what the politicians are calling, the "suffering" economy.

Remember, despite a high unemployment rate (which has improved dramatically), and forced business closures (in some, more than other, areas of the country) there has been incredibly aggressive aid disbursed along the way.

The Federal unemployment subsidy has, for lower wage earners, paid them more than they made while working (about 80% more than minimum wage). And this has put pressure under wages being paid to those that are working. The private sector has had to increase wages to compete with what the government has (maybe unintentionally) set as a new living wage (via the unemployment subsidy).

And within all of this, keep in mind, the economy was never completely shutdown. At the depths of the health and economic crisis, the economy was still running at 64% capacity (from 77% capacity, pre-crisis).

And as you can see in the chart, the economy is now nearly back to the pre-Pandemic operating rate.

With that backdrop, the latest Atlanta Fed GDP model is now projecting an 8.8% annual rate of growth for the first quarter. That’s three times faster than the pre-Pandemic Q4 2019 growth.
Personal income was up 10% in January (compared to December), thanks to stimulus checks from the $900 billion aid package in late December and the extended federal unemployment subsidy.

The personal savings rate was 20.5% in January. That's more than double pre-Pandemic levels, and more than double the average U.S. savings rate of the past sixty years.

And real disposable income is 13% higher in January, than it was in before the Pandemic.

These numbers are doing to go one direction after this next $2 trillion package hits: UP.

Sounds great. But as we've been discussing in my daily notes, this will all be accompanied by prices going UP, maybe a lot.

Let's revisit the chart from the early 70s, the last time we had a sharp spike inflation.


This chart shows the dramatic move in inflation from a “shock event.” In the early 70s, OPEC blocked oil exports to the U.S., sending oil prices up four fold in 1973. Broader prices in the U.S. economy followed, spiking by double digits.

Not sure what it's like for Ameribrahs hivsn the role of the dollar but don't we need inflation to refinance our national debt?

But jesus christ if there's any more asset price inflation! Food is cheap here but electricity, gas, insurance is through the roof.

Can't wait for the Great Depression Version 2.0

home prices inflated asf

That $1.9trillion stimulus was unnecessary. Chit's gonna be opening up again soon and households are already sitting on record amounts of personal savings. They should've given money to people who were truly struggling and that's it



But when the world opens up again and people start spending their savings on toys / vacations / entertainment, that'll drive up prices

Fuk the Feds. Home prices are going nuts.

Home prices have been going up because of increased demand, the fact that RE is limited by how much space exists in an area, and low interest rates. A $400,000 mortgage has a payment of like $2,000 a month right now (obviously that doesn't include taxes and insurance but that is area specific), since most people are fukkin dumb and shop based on payments rather than cost or something we get **** like a 2b1/1ba ****hole in an average city costing $200,000. Of course most people can afford that tiny ass monthly payment so they just pay it, who cares that they just spend 4 years of earnings on a hovel.

When interest rates go up, payments go up and prices come down, because again people shop on payments rather than cost or what they need/can afford.

*yawn* You *******s say this every year.


...aaaand this. You armchair economist clowns don't even know basic supply vs demand.

[QUOTE=GainzMcgee post_id=1632731313]*yawn* You *******s say this every year.

[img]https://d3fy651gv2fhd3.cloudfront.net/charts/united-states-inflation-cpi.png?s=cpi+yoy&v=202103012300V20200908[img]




...aaaand this. You armchair economist clowns don't even know basic supply vs demand.[/QUOTE]Quantitative demand artificially increased by giving everyone with a pulse a loan. Should be illegal

The agenda is pretty easy to see

Crash everything

Blame capitalism and greed

get the desperate majority to blame capitalism and greed

Implement new policies (ehm socialism)

Continue to focus on social issues rather than highlight the power shift

....

Profit

Hyper inflation inc

This is one things Liberals never understand is that massive debt is just a tax on people via inflation.

Yes, and the rich are less affected by inflation because most of their value is retained in assets as opposed to savings, and are more likely to have income generating debt wiped out (partially) than poors who are more likely to just have debt that isn't generating anything but interest.

That said, wages are mostly falling because we are so unproductive now with bureaucratic regulatory schemes, anti-competitive taxes, and massive trade deficit. It is easier to start a business in "Communist" China than the land of the "free".

Liberals don't pay their debt so they don't give a fuk

Fine by me. 95% of my net worth is in equities and real estate. I’ll be riding high on the inflation wave.

No reason why the non-rich couldn't also put their savings into assets. Nothing says you can't invest $500, you don't need $5 million. It's 2021 and has never been easier to educate yourself on any subject.

Agreed about the difficulty of starting a business in today's environment though. In many cases it's better to start under the table and then do the licensing when you are making some money. Both liberals and conservatives have been pushing barriers to entry as both parties donor pool is made up of people interested in keeping out competition.

Lol yes there is. You need liquid capital to spend for your daily a life. A poor**** can only invest 10% or 5% of their income, and eventually they will need to withdraw some of it for a large purchase, such as a car, apartment, house, boat, wedding, funeral, education etc..

Same concept with middle class ****s. They might invest 20% or 30%, but the rest goes into paying off interest and high cost of living. They might have 1 mil in the stock market but when they want to buy a house they have to withdraw some of it for a down payment and also to realize their gains to avoid risk of losses and defaulting.

A rich**** can invest significantly more of their income because cost of living barely effects them. Jeff Bezos only has 5% of his net worth in liquid cash. The other 95% is appreciating assets, income generating assets, and reinvested income.

There's also the argument that our government education system failed poor****s and they don't have the financial literacy and independence to make good choices, which is why we have another bullchit invention of the government: social security.

Yeah because everything was great before January

[QUOTE=GainzMcgee post_id=1632731313]*yawn* You *******s say this every year.

[]https://d3fy651gv2fhd3.cloudfront.net/charts/united-states-inflation-cpi.png?s=cpi+yoy&v=202103012300V20200908[/img]
[/QUOTE][QUOTE=ymer post_id=1632736863]Poor people are not qualified to talk about economy, please go back to your station, minion.[/QUOTE]Also, the inflation rate is relatively "normal" because the government is the one that determines (lies about) the CPI.

Furthermore, people are investing more than spending more because they are unsure of the state of the economy, and they notice the inflated prices and FOMO in. No one is spending their stimulus check on consumer products, they are buying Tesla, BTC, etc.. That's why we aren't experiencing 17% inflation right now...

[img]https://levels.io/content/images/size/w1000/2021/02/Screen-Shot-2021-02-14-at-10.11.46-PM.png[/img]

Phucking lol @ this reassurance propeganda.

Keep spending brahs, everything's fine brahs, short-term inflation spikes are totally normal brahs.

Roaring 20s, Great Depression, World War II.

[QUOTE=BulkingIsHard post_id=1632737793]Also, the inflation rate is relatively "normal" because the government is the one that determines (lies about) the CPI.

Furthermore, people are investing more than spending more because they are unsure of the state of the economy, and they notice the inflated prices and FOMO in. No one is spending their stimulus check on consumer products, they are buying Tesla, BTC, etc.. That's why we aren't experiencing 17% inflation right now...

[img]https://levels.io/content/images/size/w1000/2021/02/Screen-Shot-2021-02-14-at-10.11.46-PM.pn/img][/QUOTE]This goy gets it.

Why are people complaining about Covid checks causing inflation? It's like folks saying raising minimum wage will cause inflation when it's barely been raised. Inflation has been happening without those two factors. Even if no Covid checks were printed and minimum wage was $4, inflation would still be high as it is now.

How much money do we send to foreign countries like Israel? How much money have we spend on the war on drugs? All that money spend and yet we're focused on stimulus checks and the minimum wage of our own people.

Inflation has been happening for years on end. Don't blame the people, blame the government and corporations.

Because the printers have just been red-lined last March. It's always been a problem but no one cared because they enjoyed the gilded utopia, now it is accelerating. Well, no one cares still, I guess. Probably why anyone that is skeptical is called a doomer and laughed at by retail investors that started 2 months ago.

I'm not saying Capitalism needs to be gotten rid of, but it's definitely the cause of our America's problems. Crony Capitalism is rampant and needs restrictions. How the hell haven't wages gone up when we've become much more efficient at what we do?

Because people haven't become more efficient brah. Machines and systems invented by people have become more efficient.

One man operating one machine can now build a car when it used to take 10 men. A pure mathmatician used to be able to generate whatever value you place on teaching university, now he can generate $60 billion a month working at a quant fund.

"Productivity" is up because we are automating and outsourcing a lot of work which could have been done without a minimum wage. Some shills will argue that everything is cheaper so it doesn't matter, but cost of living is still accelerating due to regulations and taxes, just look at California.

Turned all my savings into silver, will do the same with my trash Biden Bucks.

imagine taking financial advice on misc
imagine taking economic lessons from a person who never studied economics
this is why social media should be limited it gives any idiot a soapbox