Inflation

[George K]

@loki said in Inflation:

And the reason for all this inflation is????

Simple: "We can't go bankrupt! We'll create as much money as we need."

[Catseye3]

@george-k said in Inflation:

"We can't go bankrupt! We'll create as much money as we need."

How did he mean create? Did he mean create as in printing it at the Mint, or create as in economic activity?

[George K]

https://apnews.com/article/business-producer-prices-prices-inflation-economy-56eee45eace6035280f7d3b0fe932bdc

Inflation at the wholesale level rose 8.6% last month from a year earlier, matching September’s record annual gain and offering more evidence that inflationary pressures are not yet easing.

The Labor Department reported Tuesday that its producer price index — which measures inflation before it hits consumers — rose 0.6% last month from September, pushed higher by surging gasoline prices. Excluding volatile food and energy prices, wholesale inflation was up 0.4% in October from September and 6.8% from a year ago.

More than 60% of the September-October increase in overall producer prices was caused by a 1.2% increase in the price of wholesale goods as opposed to services. A 6.7% jump in wholesale gasoline prices helped drive goods prices up.

[Klaus]

Somewhere I still have a stamp album with a (I believe) 20 billion Mark stamp.

[mark]

@george-k said in Inflation:

@loki said in Inflation:

And the reason for all this inflation is????

Simple: "We can't go bankrupt! We'll create as much money as we need."

Isn't that actually true? Since our money is the standard by which all other currencies are measured and, is no longer tied to anything for measuring its worth, can hyper-inflation even ever happen again?

To me, the sole reason why Nixon took us off any remaining measure against gold, is so the government can spend as much as it wants into eternity. Just look at the government budgets, pre and post gold standard. There really isn't any need for an income tax post gold standard. The money supply is unlimited.

[Jolly]

Until nobody wants our dollars...

[George K]

Seen on FB:

[LuFins Dad]

Remember the Farm Bureau’s .14 cent 4th of July?

They’re back…

https://www.fb.org/newsroom/farm-bureau-survey-shows-thanksgiving-dinner-cost-up-14

[LuFins Dad]

Our cost for shipping a container of goods is 5 times what it was 14 months ago.

[Jolly]

But...I had supper with a rancher last night. As usual, talk got around to the price of cows, and especially feeder calves. He's making just enough profit to keep his head above water.

The price that ranchers are getting for their beef does not translate into the huge increases in the store.

[George K]

Deal with it, peasant.

[George K]

[Mik]

Let them eat chicken.

[George K]

[George K]

[Mik]

I'm not at all sure how you can compare the US economy, with the enormous technological and worldwide political change, to the late 60's.

[Doctor Phibes]

@mik said in Inflation:

I'm not at all sure how you can compare the US economy, with the enormous technological and worldwide political change, to the late 60's.

There was no Covid back then, either. It's all about Covid at the moment.

[George K]

[George K]

11 months into Lyin' Joe's term, let me ask a question:

Several people have said that POTUS really has little influence over gas prices. Does the same apply to inflation?

What about other countries?

[Jolly]

Well, first we have to consider the inflation of the 70's vs. that of today. We've changed the indicators. Right now, it's looking like inflation will come in a bit over 7% for the calendar year...If we use 70's indicators, that number rises to above 15%.

That may be the worst annual inflation numbers for the U.S., ever.

So, The Resident and his administration want us to put out the inflation fire by throwing gasoline () on it.

I ain't no economist, but I fail to see how increasing the fiat money supply defeats inflation...