I.Am.Ironman Posted May 6, 2022 Share Posted May 6, 2022 (edited) 25 minutes ago, nuckin_futz said: Yes but it's not hard to ascertain the real data. PPI (producer price index) and CPI (consumer price index) are virtually impossible to fake. If a loaf of bread was $2 and now it's $2.50 that's pretty hard to hide. The biggest thing effecting the currency is going to be the country's interest rate. Do you think we need to tear off the bandaid or just continue the slow peel (50 basis point hike after 50 basis point hike)? I know national debt comes into the equation as well. The question becomes whether nations can continue to make interest payments on debt. Edited May 6, 2022 by I.Am.Ironman Link to comment Share on other sites More sharing options...
nuckin_futz Posted May 6, 2022 Share Posted May 6, 2022 6 minutes ago, I.Am.Ironman said: Do you think we need to tear off the bandaid or just continue the slow peel (50 basis point hike after 50 basis point hike)? I know national debt comes into the equation as well. The question becomes whether nations can continue to make interest payments on debt. By 'tear the banaid off' I assume you mean just do 1 big 200 or so BPS hike? That would be a huge shock to the system and is something that just isn't done. Historically speaking 50 bps hikes are pretty big. Especially when they are indicating they will do more hikes of that magnitude at future meetings and they meet every 6-8 weeks. They can get to where they want to be pretty quickly by hiking 50 bps every 6-8 weeks. If they have a printing press they can always pay the interest payments. This was of interest from yesterday......... Truth bomb time. Ex-Fed Reserve Vice Chair Clarida says rates must rise to at least 3.5% Prior Federal Reserve vice-chair dropping the news. Bloomberg (gated) with comments from the prior vice-chair of the Federal Reserve Richard Clarida. Free to speak his mind now I guess. Fed will need to raise short-term interest rates to at least 3.5% to bring surging inflation under control “Expeditiously ‘getting to neutral’ will not be enough this cycle to return inflation over the forecast horizon back to the 2% longer-run goal,” “The funds rate will I believe ultimately need to be raised well into restrictive territory, by at least a percentage point" Comments extracted from remarks prepared for delivery to a Hoover Institution conference on Friday. More at that gated link above. 1 Link to comment Share on other sites More sharing options...
I.Am.Ironman Posted May 7, 2022 Share Posted May 7, 2022 7 hours ago, nuckin_futz said: By 'tear the banaid off' I assume you mean just do 1 big 200 or so BPS hike? That would be a huge shock to the system and is something that just isn't done. Historically speaking 50 bps hikes are pretty big. Especially when they are indicating they will do more hikes of that magnitude at future meetings and they meet every 6-8 weeks. They can get to where they want to be pretty quickly by hiking 50 bps every 6-8 weeks. If they have a printing press they can always pay the interest payments. This was of interest from yesterday......... Truth bomb time. Ex-Fed Reserve Vice Chair Clarida says rates must rise to at least 3.5% Prior Federal Reserve vice-chair dropping the news. Bloomberg (gated) with comments from the prior vice-chair of the Federal Reserve Richard Clarida. Free to speak his mind now I guess. Fed will need to raise short-term interest rates to at least 3.5% to bring surging inflation under control “Expeditiously ‘getting to neutral’ will not be enough this cycle to return inflation over the forecast horizon back to the 2% longer-run goal,” “The funds rate will I believe ultimately need to be raised well into restrictive territory, by at least a percentage point" Comments extracted from remarks prepared for delivery to a Hoover Institution conference on Friday. More at that gated link above. Still a long way to go until 3.5%. We are only at 1% right now. It feels like the fed is stuck between a rock and a hard place. Link to comment Share on other sites More sharing options...
Gurn Posted May 12, 2022 Share Posted May 12, 2022 McDonalds 2 hamburgers $4.20 in Dec 21 4.80 in Feb 22 5.00 today plus 19% since Dec.21 Link to comment Share on other sites More sharing options...
johngould21 Posted May 15, 2022 Share Posted May 15, 2022 Kevin Falcon visiting the gas pumps to protest the high prices! Give me a f***ing break Kevin. The same way you and your party protested back in 2008 when the price at the pump hit $1.50? I might not have the right year, but it was somewhere in that neighbourhood. The same amount of petroleum is flowing through that pipeline that was built 50 odd years ago, and we've got prices like these. His first call should be to Mr Chevron, Mr Shell, and all the other suspects. Link to comment Share on other sites More sharing options...
johngould21 Posted May 15, 2022 Share Posted May 15, 2022 On 5/11/2022 at 5:07 PM, gurn said: McDonalds 2 hamburgers $4.20 in Dec 21 4.80 in Feb 22 5.00 today plus 19% since Dec.21 An MSNBC analyst was explaining how corporations are going with very high profits, especially food processors and suppliers, when there really is no need for this. As long as shareholders are making money.... 1 Link to comment Share on other sites More sharing options...
Boudrias Posted May 15, 2022 Share Posted May 15, 2022 17 minutes ago, johngould21 said: An MSNBC analyst was explaining how corporations are going with very high profits, especially food processors and suppliers, when there really is no need for this. As long as shareholders are making money.... Perhaps you should ask why inflation is at 8.5%, more likely + 10%. Politicians suggesting price gouging is more a pandering diversion to the public. Fundamental denial of economics. Google Larry Somers, the lead economic advisor during the Obama admin. 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 On 5/11/2022 at 5:07 PM, gurn said: McDonalds 2 hamburgers $4.20 in Dec 21 4.80 in Feb 22 5.00 today plus 19% since Dec.21 I should start eating at McDonalds. My sushi dinner last night was over $50... 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 Biden says raising taxes on the rich will help bring down inflation... Link to comment Share on other sites More sharing options...
Warhippy Posted May 17, 2022 Share Posted May 17, 2022 24 minutes ago, Elias Pettersson said: Biden says raising taxes on the rich will help bring down inflation... Ya....that's not what he said at all. He's listening to experts who said taxing CERTAIN things might help EASE the price of other essential things. Biden himself is calling out Bezos, Musk and the wealthiest people and corps for not paying their fair share of taxes or their employees a living wage. It's literally in the story. 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 1 hour ago, Warhippy said: Ya....that's not what he said at all. He's listening to experts who said taxing CERTAIN things might help EASE the price of other essential things. Biden himself is calling out Bezos, Musk and the wealthiest people and corps for not paying their fair share of taxes or their employees a living wage. It's literally in the story. No that's not what Biden said. He said this, the "wealthiest corporations". How taxing the richest corporations is going to bring down inflation is beyond me. Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 John Horgan has a great idea to help with inflation. Pick up hitch hikers and do your shopping for your neighbours... 1 Link to comment Share on other sites More sharing options...
Popular Post RUPERTKBD Posted May 17, 2022 Popular Post Share Posted May 17, 2022 It's naive to think that any politician can "fix" inflation. There are far too many factors at play, both internationally and domestically. That being said, wealthy corporations contributing their fair share, (as opposed to the nothing that the contribute currently) is certainly not going to hurt those of us who can't afford to take trips to space, just for the fun of it.... 1 1 2 1 Link to comment Share on other sites More sharing options...
Boudrias Posted May 17, 2022 Share Posted May 17, 2022 9 hours ago, Elias Pettersson said: John Horgan has a great idea to help with inflation. Pick up hitch hikers and do your shopping for your neighbours... Maybe ask Mitch Marner how that works for ya? Link to comment Share on other sites More sharing options...
Warhippy Posted May 17, 2022 Share Posted May 17, 2022 9 hours ago, Elias Pettersson said: No that's not what Biden said. He said this, the "wealthiest corporations". How taxing the richest corporations is going to bring down inflation is beyond me. Ensuring that extra tax dollars roll in from corporations and the wealthiest who are paying the least will in fact help those struggling. What's your gripe with that? 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 24 minutes ago, Warhippy said: Ensuring that extra tax dollars roll in from corporations and the wealthiest who are paying the least will in fact help those struggling. What's your gripe with that? Taxing the richest people and corporations doesn't help with inflation. If you are going to increase taxes on a publicly traded company like Amazon to try and move that money around to help other people then Amazon will simply increase their prices to offset the increased cost of doing business. That increases inflation, it doesn't help bring it down. Amazon is in the business of making profits and increasing shareholder value. They are not in the business of redistributing wealth to help out the poor. Increasing taxes during an inflationary period is the exact opposite of what you are supposed to do. The reason we have inflation in the first place is because of government spending and printing out money into the economy causing increased demand on goods and services. Increasing demand and lack of supply causes inflation. Increasing taxes on the wealthy to stop them from buying goods and services while giving that money to other people to help them out is very short sighted. Especially when the government is also increasing interest rates at the same time. The only sure way to actually stop inflation is to go into a recession. That's what usually happens after you print trillions of dollars and raise interest rates. It's inevitable. We need the pain of a recession and a lowering of demand on goods and services in order to lower inflation and to get out of this mess. Unfortunately during a recession people get laid off and salaries decline, so that is why governments try and avoid it if possible. But I don't see any other way out of this mess now. John Horgan telling people to stop driving and to do your shopping for your neighbours doesn't really help the big picture. Horgan would be better off reducing the carbon tax then telling us to take the bus or to stop driving. 1 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 1 hour ago, RUPERTKBD said: It's naive to think that any politician can "fix" inflation. There are far too many factors at play, both internationally and domestically. That being said, wealthy corporations contributing their fair share, (as opposed to the nothing that the contribute currently) is certainly not going to hurt those of us who can't afford to take trips to space, just for the fun of it.... I agree. Politicians cannot fix inflation. Our current situation is not simply a domestic issue that can be fixed by monetary or fiscal policy. It is a combination of many different factors that stretch globally. It's going to be painful. I have no issues with the wealthy paying more taxes in general terms, but to use that angle to make people think that is what is needed to help lower prices is giving people false hope in my opinion. Link to comment Share on other sites More sharing options...
RUPERTKBD Posted May 17, 2022 Share Posted May 17, 2022 20 minutes ago, Elias Pettersson said: I agree. Politicians cannot fix inflation. Our current situation is not simply a domestic issue that can be fixed by monetary or fiscal policy. It is a combination of many different factors that stretch globally. It's going to be painful. I have no issues with the wealthy paying more taxes in general terms, but to use that angle to make people think that is what is needed to help lower prices is giving people false hope in my opinion. I agree, but Biden's critics are using things like Trans Mountain and Illegal immigrants to blame him for the current inflation rate, so he's really just playing the political game. The truth just doesn't make for good politics....on either side.... 1 Link to comment Share on other sites More sharing options...
Elias Pettersson Posted May 17, 2022 Share Posted May 17, 2022 (edited) 50 minutes ago, RUPERTKBD said: I agree, but Biden's critics are using things like Trans Mountain and Illegal immigrants to blame him for the current inflation rate, so he's really just playing the political game. The truth just doesn't make for good politics....on either side.... Agreed 100%. Biden is being blamed for all of the problems in the world, so he is coming out and saying hey, let's tax the rich, that will fix things. It's just a political maneuver really. No one actually thinks that in and of itself is going to lower inflation. At the end of the day we are in for some painful times ahead, sorry to say... Edited May 17, 2022 by Elias Pettersson 1 Link to comment Share on other sites More sharing options...
The Arrogant Worms Posted May 17, 2022 Share Posted May 17, 2022 3 hours ago, Elias Pettersson said: Taxing the richest people and corporations doesn't help with inflation. If you are going to increase taxes on a publicly traded company like Amazon to try and move that money around to help other people then Amazon will simply increase their prices to offset the increased cost of doing business. That increases inflation, it doesn't help bring it down. Amazon is in the business of making profits and increasing shareholder value. They are not in the business of redistributing wealth to help out the poor. Increasing taxes during an inflationary period is the exact opposite of what you are supposed to do. The reason we have inflation in the first place is because of government spending and printing out money into the economy causing increased demand on goods and services. Increasing demand and lack of supply causes inflation. Increasing taxes on the wealthy to stop them from buying goods and services while giving that money to other people to help them out is very short sighted. Especially when the government is also increasing interest rates at the same time. The only sure way to actually stop inflation is to go into a recession. That's what usually happens after you print trillions of dollars and raise interest rates. It's inevitable. We need the pain of a recession and a lowering of demand on goods and services in order to lower inflation and to get out of this mess. Unfortunately during a recession people get laid off and salaries decline, so that is why governments try and avoid it if possible. But I don't see any other way out of this mess now. John Horgan telling people to stop driving and to do your shopping for your neighbours doesn't really help the big picture. Horgan would be better off reducing the carbon tax then telling us to take the bus or to stop driving. How can you increase the tax on Amazon if it doesn't pay any? Link to comment Share on other sites More sharing options...
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