Inflation: Watching The RT Channel

fmdog44

fmdog44

Well-known Member
Location
Houston, Texas
I started watching Russian television recently and tonight the 6% rate of inflation there was a topic. The Russian economy may be overheating. Also it was said inflation is worldwide. Oil prices have leaped 30% since the start of the year. I hope we are not in for a sky's the limit inflation.
 

They are a pretty much temporary supply chain issues from the economy reopening …one third of the jump in the CPI here the other day was used cars because of the chip problem .

in the end this likely will be an inflation head fake
 
Most predictions are showing at least a 5% increase in inflation for 2021. It will be interesting to see if the Fed allows the Fed Fund rates to increase, to allow the banks to offer more than a pittance on savings accounts... and, how inflation will change next years SS COLA.
 
We had cutbacks in a lot of things over the years. eg: nurses and hospital emergency wards. The government always told us that there is no money in the budget and we have to limit expenses. Then came the pandemic. Suddenly, billions of dollars are available for support during this pandemic. Many unemployed people here were given $2,000/month. Hey, this is more than you could earn flipping burgers at minimum wage and you got to stay home and watch all those "wonderful" Netflix movies that you couldn't when you had to work for a living. Common sense tells me that the government has been giving out a lot of money to business and unemployed people for the last 15 months. So, how come there is this money around suddenly when for years it was not. Two scenarios: 1. The money is being printed which will cause inflation. 2. The money is being borrowed which must be returned. One way or another, someone has to repay this sooner or later. I feel sorry for the younger generation as it seems to have to fall on their backs to repay some of this. So, what is to happen? Taxes up or interest rates up? Me, I'm just an ordinary guy so I have no idea. Time will tell!
 
The Federal government has gone crazy with spending. Compaing them to 'drunken sailors' would be an insult to drunken sailors.
 
There is NO Free Lunch. When individuals run up debt, they either have to pay it off, or face bankruptcy. Governments can print endless supplies of money, until no one wants to risk buying their bonds, etc. When that happens, the most likely scenario is to devalue the currency, which winds up costing everyone....especially the poor and working classes.

The US debt is currently over 28 trillion, and climbing. The last time the debt was this high, percentage wise, was in the aftermath of WWII. However, the people back then accepted tax rates as high as 92%, and the debt was paid off in less than a decade. Today, our stupid government spends unchecked, and even offers tax breaks to the wealthy and corporations. This is a Sure sign of a looming financial crisis that will "Skewer" 99% of us.

Here's a ongoing tally of how our government is headed for a Brick Wall.....

https://usdebtclock.org/
 
I watched a Town Hall meeting on youtube yesterday between a Kansas state political rep and Kansas small business owners who were adversely effected by the pandemic. The rep said that congress is working on a bill that will help free up and grow entrepreneurship/small business ventures. He didn't go into details, but it's something I'm going to watch for.

No one causes economical problems better than gov't, and if given the chance, no one can solve them better than regular people.
 

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