Bearing in mind that the current Fed head honcho, Jerome Powell, has no formal economics education and was a lawyer by trade. My opinion - he does what he is told to do and say, including the mantra that any inflation was going to be "transitory". Uh huh.
You mean, this guy? Yea, right. When presented with the thought of MMT, he said:
“The idea that deficits don’t matter for countries that can borrow in their own currency I think is just wrong,” the Federal Reserve chairman, Jerome H. Powell, testified before the Senate Banking Committee in February.
Having said that, I wish Janet Yellen was still in charge of the Fed. She was let go by TFG because he thought she was too short and not from central casting.
@socalml528Yes, @noske, the FEDs are top economists in the country and recent inflation cycles don’t comply with our daily existence.
Bearing in mind that the current Fed head honcho, Jerome Powell, has no formal economics education and was a lawyer by trade. My opinion - he does what he is told to do and say, including the mantra that any inflation was going to be "transitory". Uh huh.
Influential economists to the Fed subscribe to what is known as Modern Monetary Theory. This is bad economics because it is built on some bad assumptions that prudent economists and most normal thinking people do not subscribe to.
So I got some prickles when the words manage, inflation, and the Fed were used in about one short sentence.
I thought I suggested this was perhaps not the appropriate forum? But if its OK with AG mods...
Watching Led Zeppelin 2008. After the gig (its contrived and all, and pretty good if you can forget all that) Robert went to his local bar by himself, got smashed with a few other regulars there and said to himself about the gig "never again".
The printing of money doesn't contribute to inflation. It doesn't work that way. When the government increases currency, it simply buys things like savings (which there are tons of) and puts it into circulation. It's been done that way since, forever.
Did any of you know that 54% of adults between 16 - 74 years old can't read at a 6th grade level? Save those stories of printing money being the cause of inflation for them.
@nonoisethe guy who you are probably talking is unfortunately correct. Inflation is caused when too much money chases a limited supply of goods and services. COVID may have crimped the supply chain, but it was and is GOV that is printing money right, left and in-between - making any accumulated money you and I may have worth less.
I am not trying to start an argument by saying that current gov policy is "bad." However, I am saying that it is definitely inflationary.
Look at all the backseat economists out there (the lurking ones who won't post) pretending to not be political by clumsily being circumspect, getting a post removed that did not violate any conditions and which was a direct response to an idiotic (and political) statement to begin with. That post is still up. Go figure.
You just have to love all the bitching and whining about free speech and the very ones who do so are the first to censor others. But it's all a sort of validation, isn't it?
Realistically, my guess is that in specific cases, it is due to supply chain issues. They can be cumulative - a delay (or a price increase) in a primary component affects everything that went after it in the chain.
Especially sensitive products would be those where there are specific proprietary components being delayed. That is, there is no substitute for them.
When the AKM DAC chip factory went poof, there were available other established DAC chip makers and DAC manufacturers adapted.
In the meantime though, apparently the prices of remaining AKM chips skyrocketed.
As Economics Prof would say, "inflation is neither good or bad; you need just enough and not too much." BTW, inflation is managed through the Fed, not the WH (but that's already been pointed out).
Here is the good (sort of) news: When a manufacturer raises the MSRP on something you already own, the used market value of that gear just went up. Remember that next time you sell your gear.
It’s not price gouging! I wish people could understand economics. The idiots in this WH don’t understand how businesses work. If you pay somebody 2x more flipping a hamburger, that hamburger is going to be maybe $2 now. Even a Walmart employee told me why milk is now $5 a gallon is because employees are making more money. What do people think when salaries are going up like they are, do you expect corporations to eat those costs? Hell no. Normally, when you ask for a raise, you need to justify that increase to your boss and if you can’t you don’t get the raise. Not anymore.
Another big component of this inflation is the price of oil. When oil goes up, so do millions of other products that need oil for manufacturing.
Corporations and businesses have every right to pass on these increases to customers.
LAND, they ain’t making any more of it I can afford. BUY LAND! I had a steady return over 37 years of 8.9%. Mostly open land close to LA. Tax lien sales. The stock market is the 90% of suckers paying the 10% of thieves.
Economies pretend there is money, budgets spend what there is. Not what you think there is. OOPS! What a concept.
I just cashed in all the IRA/Roth/CRAP. The only person that made money on that deal was the US government and the taxes they collected. Biggest scam since the skim of ALL the interest into other coffers that destabilized Social Security’s future. Along with adding SS monies to the GDP which it is NOT, until Nixon and a few others raided the interest and a few other thing from it. Same reason for the Teamsters takeover, US government still has it’s hands in the coffers of the International. Less expensive doing business with the "OTHER" bad guys. The Mob.
What is the market leveraged to now, 7 to 1. A fools market, no mater the outcome Ask the Dutch they never recovered from the Tulip economy. :-) 1650? See they had to sell NY. :-) Which is worth more New York or TULIPS?
Gold or Silver will not buy New York, BUT a land deal might? I say sell it. Pay off the National DEBT. Swap New York for Moscow, and maybe throw in Siberia. SOLD!!!
You must have a verified phone number and physical address in order to post in the Audiogon Forums. Please return to Audiogon.com and complete this step. If you have any questions please contact Support.
