Inflation: What's happening

[dabrockster]

I tried to look for a current thread that speaks about this but was unable to find one. Now I am not an expert on this and was hoping I could learn about this from those of you who are experts. I am hoping you can post the trends and impacts you see in your businesses etc.

I did come across a few articles I thought I would post.

First one is on Bernanke speaking about his "inflation record is the best of any Federal Reserve Chairman in the post-war period.". This article speaks about said comment.

http://www.zerohedge.com/news/2013-0...flation-record

Image to go along with the article:



The next article is title "February Inflation":

http://www.zerohedge.com/news/2013-0...-rises-highest




Note: Some of the comments after each article are enjoyable as well..

[Indy Coug]

I'm guessing he's referring to the increase in the CPI_U

cpi_u.JPG

[jay santos]

I tried to look for a current thread that speaks about this but was unable to find one. Now I am not an expert on this and was hoping I could learn about this from those of you who are experts. I am hoping you can post the trends and impacts you see in your businesses etc.

I did come across a few articles I thought I would post.

First one is on Bernanke speaking about his "inflation record is the best of any Federal Reserve Chairman in the post-war period.". This article speaks about said comment.

http://www.zerohedge.com/news/2013-0...flation-record

Image to go along with the article:



The next article is title "February Inflation":

http://www.zerohedge.com/news/2013-0...-rises-highest




Note: Some of the comments after each article are enjoyable as well..

The chart's manipulated to make the variance look more pronounced. Variance from 500 to 600 on a chart with 2000 as the scale is going to look a lot different than 50 to 60, although they are the same. It looks like most of the items are in line, except for oil and gas (which is explained by supply issues and not due to inflation) and gold. Honestly, I don't understand why gold has been so volatile. I'm not educated on it right now. I assume it has to do with our trade imbalance?

[Bo Diddley]

The chart's manipulated to make the variance look more pronounced. Variance from 500 to 600 on a chart with 2000 as the scale is going to look a lot different than 50 to 60, although they are the same. It looks like most of the items are in line, except for oil and gas (which is explained by supply issues and not due to inflation) and gold. Honestly, I don't understand why gold has been so volatile. I'm not educated on it right now. I assume it has to do with our trade imbalance?

Yes, I had to look at the chart a couple of times as well. If you look closely enough, you'll see that there are only four items that spike. And if you've been following gold, it's on it's way down, 18% I think. A couple more percentage points, and gold will be in a bear market.

Edit: maybe there's a fifth. But the fact that the chart was manipulated to exaggerate the inflation undercuts their point.

[Moliere]

The chart's manipulated to make the variance look more pronounced. Variance from 500 to 600 on a chart with 2000 as the scale is going to look a lot different than 50 to 60, although they are the same. It looks like most of the items are in line, except for oil and gas (which is explained by supply issues and not due to inflation) and gold. Honestly, I don't understand why gold has been so volatile. I'm not educated on it right now. I assume it has to do with our trade imbalance?

Shouldn't the chart be on a logarithmic scale as well? The way it is set up makes it look like those charts I'm shown when people ask me to invest in something and they look like hockey sticks with the large increase in value, but in reality the return on those investments is mediocre at best.

[Uncle Ted]

Why A Six-Figure Salary No Longer Means You’re Rich

I was born in 1980, and I still remember the days when “bringing in six figures” was a sign of extreme wealth and success. It was more than enough to buy the perfect house with a white picket fence, after all, and achieving that sort of income implied a certain level of status that nearly everyone aspired to. You could even say that a six-figure salary was seen as the real “American dream,” simply because earning that much money meant that you had “made it,” at least in financial terms. As a child, I distinctly remember dreaming of a six-figure income myself, and fantasizing about all of the amazing things I could do with so much money.


Times have changed since then, but the public’s perception of a six-figure salary hasn’t necessarily changed with it. With the median household income stuck at around $53,093 in 2014, an annual salary of nearly twice that still seems like more than enough money to succeed and thrive in any economy, no matter the circumstances. However, a convergence of factors have fundamentally changed what it means to rake in a “six-figure salary” in America, and many families who look rich on paper are merely struggling to get ahead along with everyone else.

[...]

Inflation


The Bureau of Labor Statistics offers all kinds of nifty data on inflation rates over the years, including this Consumer Price Index inflation calculator. Play around with it and you’ll see that a $100,000 salary in 1980 would go as far as $288,713.59 does today. In other words, today’s family would need to earn $288,713.59 to achieve the same kind of lifestyle as someone making $100,000 in 1980.


This chart shows exactly how the value of the median household income has decayed over the last decade:

https://blog.personalcapital.com/inv...figure-salary/

So if I guess if you are not making at $288,713.59 or more then you are just middle class.

[chrisrenrut]

Is inflation worrying anyone else? With as much cash the fed has been pumping and will be pumping into the economy, really low low interest rates for some time now, and now a push for raising the minimum wage to $15, I’m having a hard time seeing how it doesn’t start to ramp up.

Just some thought I had on a long climb biking, but it kind of makes sense. Am I off base?

[Bo Diddley]

Is inflation worrying anyone else? With as much cash the fed has been pumping and will be pumping into the economy, really low low interest rates for some time now, and now a push for raising the minimum wage to $15, I’m having a hard time seeing how it doesn’t start to ramp up.

Just some thought I had on a long climb biking, but it kind of makes sense. Am I off base?

I've wondered a bit about this. Obviously overhead has to be factored in, but really it comes down to supply and demand, right? The Pandemic has messed with our economy wrt that, so I think a lot of what will play into inflation will be when do we come out of it, and how spending habits change.

[Moliere]

Inflation is an interesting phenomenon. It’s a mindset in a way as people just expect it to happen. What becomes alarming is when a lot of people start to expect it to increase, which is why this trend is alarming to me. Thankfully my retirement account is big enough that I can at least benefit from it if it does happen

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[beefytee]

I was talking with my HVAC neighbor the other night. He says that quotes for parts where he shops are no longer good for 30 days, only 48 hours. He had to eat $700 on a project because of it. I don't see how inflation isn't an issue over the next few months.

[Moliere]

I was talking with my HVAC neighbor the other night. He says that quotes for parts where he shops are no longer good for 30 days, only 48 hours. He had to eat $700 on a project because of it. I don't see how inflation isn't an issue over the next few months.

With another $2 trillion being proposed for infrastructure...I mean, the economy is actually in great shape in places that are allowing people to work.


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[Uncle Ted]

I was talking with my HVAC neighbor the other night. He says that quotes for parts where he shops are no longer good for 30 days, only 48 hours. He had to eat $700 on a project because of it. I don't see how inflation isn't an issue over the next few months.

Inflation was up only 56% in March... https://ycharts.com/indicators/us_in...%20last%20year.

You can get a mortgage for 2.75% and inflation is 2.62%. Nice.

[Uncle Ted]

Biden Proposes $2 Trillion Bill To Study What's Causing Inflation Rates To Rise

President Biden proposed a $2 trillion spending bill Monday for the purpose of determining the cause of rising inflation. This is Biden’s fourth proposed $2 trillion bill in as many months.

“The cause of inflation is a major concern for all Americans,” Biden told reporters. “Rest assured, your government is committed to spending however much taxpayer money it takes to get to the bottom of this malarkey!”

According to Biden, the cause of the rapid increase in inflation has been baffling his economic experts for weeks. “All we know is that some mysterious event happened around January 20th which caused inflation to skyrocket out of control,” Biden said. “We don’t know what that event was exactly, but we do suspect President Trump was involved somehow. And maybe Russia.”

Biden noted that his willingness to spend trillions to study the problem shows just how seriously he takes the threat of inflation. “I can’t remember the last time anyone proposed a $2 trillion spending bill to Congress,” he stated. “I mean that honestly: I can’t remember. Say, what were we talking about again?”

In the meantime, officials from the US Treasury as well as the CDC have advised the public to start carrying double wallets to protect their money and help slow the spread of inflation.
[...]

https://babylonbee.com/news/biden-pr...lation-to-rise

[falafel]

I'm beginning to see what whoever said it was talking about when they said that the babylon bee was like the Onion without the humor.

[Moliere]

I'm beginning to see what whoever said it was talking about when they said that the babylon bee was like the Onion without the humor.

I found it funny


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