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(CNBC)   Jerome Powell says "inflation is soft" and challenges CPI to come at him, bro   (cnbc.com) divider line
    More: Obvious, Monetary policy, central bank Chairman Jerome Powell, Unemployment, Central bank, Federal Reserve System, Inflation, Macroeconomics, easy monetary policy  
•       •       •

1048 clicks; posted to Main » and Business » on 23 Feb 2021 at 12:35 PM (5 days ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



47 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
5 days ago  
Yield on the 10 year been creeping up bro.
 
5 days ago  
It's only soft because everyone keeps looking.
Performance anxiety can affect even big, strong economies

i.guim.co.ukView Full Size
 
5 days ago  
 
5 days ago  
Your iphone being a bit cheaper totally offsets skyrocketing rent and health care and education.
 
5 days ago  

Intrepid00: Everything is cool. Stop looking.


One commodity = overall inflation

Study it out
 
5 days ago  

relaxitsjustme: Yield on the 10 year been creeping up bro.


They have to start moving some rates. I just refinanced my house like 6 or 7 months ago, am sub 3 on a 30, and the math has still made me question doing it again a few times.

That is pumping property values and we have had a bubble there we have been ignoring a long time. We need to pull that shiat in so it isn't a shiatshow when it lets go.
 
5 days ago  

TDWCom29: Intrepid00: Everything is cool. Stop looking.

One commodity = overall inflation

Study it out


Yep, just an oddity. Stop looking.

Stop looking

Stop
 
5 days ago  

relaxitsjustme: Yield on the 10 year been creeping up bro.


1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?
 
5 days ago  

Intrepid00: TDWCom29: Intrepid00: Everything is cool. Stop looking.

One commodity = overall inflation

Study it out

Yep, just an oddity. Stop looking.

Stop looking

Stop


Cool story bro.  When do the prices of consumer products go up?
 
5 days ago  
Does that include power bills in Texas? Those have seen significant inflation.
 
5 days ago  

OptionC: Intrepid00: TDWCom29: Intrepid00: Everything is cool. Stop looking.

One commodity = overall inflation

Study it out

Yep, just an oddity. Stop looking.

Stop looking

Stop

Cool story bro.  When do the prices of consumer products go up?


Now or very shortly in the future depending when these futures are contracted for. I mean futures is right in the name.
 
5 days ago  
Bruh.

I knew he'd say something I didn't like but "tHeReS nO inFlAtioN" was not what I expected.
 
5 days ago  
Bruh, just keep giving me more of that free money.
 
5 days ago  

Likwit: Bruh.

I knew he'd say something I didn't like but "tHeReS nO inFlAtioN" was not what I expected.


We're just gonna lie to ourselves until like SPY 425.01 and then they'll crash the whole thing on top of our heads.
 
5 days ago  
They have a target for inflation. Inflation is rising but still nowhere near that target. Therefore, they're not going to change anything until that target is hit. That's a sensible strategy.
 
5 days ago  

OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?


Alexis, show me someone who doesn't understand the 10 year yield and what direction it's trending means.
 
5 days ago  

Scythed: They have a target for inflation. Inflation is rising but still nowhere near that target. Therefore, they're not going to change anything until that target is hit. That's a sensible strategy.


The problem is that it's not so easy to dial it in once it starts running hot. That's why you had Yellen on TV talking about a 50 year bond recently. They're freaking out about having to control inflation without dicking with interest rates too much (or doing curve control like my boy Kuroda... if we see that stock up on BTC and gold, kids).
 
5 days ago  
Housing is nuts all over. In Portland there is an inventory shortage. But with the radical zoning laws enacted who knows what's going to happen. Lumber is sky high. Anyone who had had renovations done or has been working on projects knows this. Price of good power tools has gone up. Yes even in Harbor Freight. And that is a sign of insanity.
 
5 days ago  

relaxitsjustme: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Alexis, show me someone who doesn't understand the 10 year yield and what direction it's trending means.


Alexa, show me someone who who screws up their own dig by calling you the wrong name.

When yields start to approach 0 because of a worldwide pandemic or global recession common sense would suggest that some day yields might go back up again.
 
5 days ago  

Red Shirt Blues: Housing is nuts all over. In Portland there is an inventory shortage. But with the radical zoning laws enacted who knows what's going to happen. Lumber is sky high. Anyone who had had renovations done or has been working on projects knows this. Price of good power tools has gone up. Yes even in Harbor Freight. And that is a sign of insanity.


Same goes for the Charlotte Metro area.  Buyers are offering $40,000 over asking, with $25,000 in due diligence and STILL losing.  Houses are going under contract, sight unseen, often within hours of going on the market (or before they are even officially listed).  New construction is just now coming back after the initial COVID delays.
 
5 days ago  

tarheel07: Red Shirt Blues: Housing is nuts all over. In Portland there is an inventory shortage. But with the radical zoning laws enacted who knows what's going to happen. Lumber is sky high. Anyone who had had renovations done or has been working on projects knows this. Price of good power tools has gone up. Yes even in Harbor Freight. And that is a sign of insanity.

Same goes for the Charlotte Metro area.  Buyers are offering $40,000 over asking, with $25,000 in due diligence and STILL losing.  Houses are going under contract, sight unseen, often within hours of going on the market (or before they are even officially listed).  New construction is just now coming back after the initial COVID delays.


The weird thing here is even with low inventory building permits have fallen off a cliff. Which is not going to help anything. Although the eviction moratorium ends in July. Maybe they figure will be swimming in foreclosures and empty rentals.
 
5 days ago  

Likwit: Bruh.

I knew he'd say something I didn't like but "tHeReS nO inFlAtioN" was not what I expected.


Expect nothing from Central Banks. Then youre never disappointed.

tapshead.gif
 
5 days ago  
Next year inflation will be very bad.  Make sure you fight for your COLA like hell this year.
 
5 days ago  

Red Shirt Blues: tarheel07: Red Shirt Blues: Housing is nuts all over. In Portland there is an inventory shortage. But with the radical zoning laws enacted who knows what's going to happen. Lumber is sky high. Anyone who had had renovations done or has been working on projects knows this. Price of good power tools has gone up. Yes even in Harbor Freight. And that is a sign of insanity.

Same goes for the Charlotte Metro area.  Buyers are offering $40,000 over asking, with $25,000 in due diligence and STILL losing.  Houses are going under contract, sight unseen, often within hours of going on the market (or before they are even officially listed).  New construction is just now coming back after the initial COVID delays.

The weird thing here is even with low inventory building permits have fallen off a cliff. Which is not going to help anything. Although the eviction moratorium ends in July. Maybe they figure will be swimming in foreclosures and empty rentals.


I think that's exactly what the expect. Already units are sitting empty in our neighborhood as landlords either get picky on credit (which is funny because that's their goto answer to all this. That there are just unlimited great credit renters) or they decide to cash out.
 
5 days ago  
they murdered small business & are now going for wymar republic inflation , look @ your bank account
 
5 days ago  

sleze: Next year inflation will be very bad.  Make sure you fight for your COLA like hell this year.


They told us we're switching to R/C in the break room.
 
5 days ago  

NikolaiFarkoff: sleze: Next year inflation will be very bad.  Make sure you fight for your COLA like hell this year.

They told us we're switching to R/C in the break room.


Time to strike. Make sure the Pepsi scabs stay out.
 
5 days ago  

fredsnake: they murdered small business & are now going for wymar republic inflation , look @ your bank account


Futurama on Banks
Youtube csh4i49WYdc
maybe invest into BTC instead?
 
5 days ago  

Intrepid00: fredsnake: they murdered small business & are now going for wymar republic inflation , look @ your bank account

[YouTube video: Futurama on Banks]maybe invest into BTC instead?


Please stop the bleeding.
 
5 days ago  
Housing is off the rails here. Rental prices, sales- all of it. Food is up.

What are they counting? Bullets? Bombs?
 
jvl [BareFark]
5 days ago  

Likwit: Scythed: They have a target for inflation. Inflation is rising but still nowhere near that target. Therefore, they're not going to change anything until that target is hit. That's a sensible strategy.

The problem is that it's not so easy to dial it in once it starts running hot. That's why you had Yellen on TV talking about a 50 year bond recently. They're freaking out about having to control inflation without dicking with interest rates too much (or doing curve control like my boy Kuroda... if we see that stock up on BTC and gold, kids).


So here's the thing with inflation: it likes to be below 0% or above 2% in order to remain stable.  If you get it under 0% you are royally forked and your economy will tank.  It's a lot harder to get <0% to be better than it is to control inflation once it gets going.

Right now we are in the deadly spot between 0% and 2% which is not a stable state. It could go either way. That's why the fed is fighting so hard to increase inflation: because the only thing worse than inflation is deflation.
 
5 days ago  

Nadie_AZ: Housing is off the rails here. Rental prices, sales- all of it. Food is up.

What are they counting? Bullets? Bombs?


Lumber at least a double, metals going through the roof like copper. And this was the slow season. In 2 months building ramps up. Those prices will only increase. That should stifle new starts and bid up existing homes further because there is no way Powell lets rates rise. Builders hopefully hedged their costs in the futures market, but if they get lumber at 500$ per unit, they are not going to sell that to you in your new home for that. Itll be marked up to market.
 
5 days ago  

jvl: Likwit: Scythed: They have a target for inflation. Inflation is rising but still nowhere near that target. Therefore, they're not going to change anything until that target is hit. That's a sensible strategy.

The problem is that it's not so easy to dial it in once it starts running hot. That's why you had Yellen on TV talking about a 50 year bond recently. They're freaking out about having to control inflation without dicking with interest rates too much (or doing curve control like my boy Kuroda... if we see that stock up on BTC and gold, kids).

So here's the thing with inflation: it likes to be below 0% or above 2% in order to remain stable.  If you get it under 0% you are royally forked and your economy will tank.  It's a lot harder to get <0% to be better than it is to control inflation once it gets going.

Right now we are in the deadly spot between 0% and 2% which is not a stable state. It could go either way. That's why the fed is fighting so hard to increase inflation: because the only thing worse than inflation is deflation.


Not if you have all the money. That shiats awesome.
 
5 days ago  

OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?


Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?
 
5 days ago  

Nadie_AZ: Housing is off the rails here. Rental prices, sales- all of it. Food is up.

What are they counting? Bullets? Bombs?


Lobster price index. No seriously, luxury goods mostly are way down and these rich farks probably think that means a dozen eggs is also cheaper.
 
jvl [BareFark]
5 days ago  

Intrepid00: jvl: Right now we are in the deadly spot between 0% and 2% which is not a stable state. It could go either way. That's why the fed is fighting so hard to increase inflation: because the only thing worse than inflation is deflation.

Not if you have all the money. That shiats awesome.


People with money generally don't have it just sitting in a bank. It's invested in stuff. They hate deflation.
 
5 days ago  

jvl: Intrepid00: jvl: Right now we are in the deadly spot between 0% and 2% which is not a stable state. It could go either way. That's why the fed is fighting so hard to increase inflation: because the only thing worse than inflation is deflation.

Not if you have all the money. That shiats awesome.

People with money generally don't have it just sitting in a bank. It's invested in stuff. They hate deflation.


You can liquidate and they did just that at the start. Just ask congress after the that Covid-19 meetings. Liquidate, wait for deflation to stop, then shove it back into futures and fark over middle class by squeezing them during the demand increase.
 
5 days ago  

Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?


So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?
 
5 days ago  

OptionC: Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?

So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?


It would be hard for us to have a situation like Japan. Private citizens and corporations hold like $12T in cash. Cash. That squirreling is an incredibly powerful deflationary force. Japanese debt is mostly to Japan and they're not concerned about the yen going silly.
 
5 days ago  

OptionC: Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?

So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?


Japan has an ageing population and fewer workers paying taxes.  They are mortgaged to the hilt.  Their options have become limited due to their large debt service payments.
We like to fill the smoking financial craters the government causes with trillions of federal cash.  Our ability to do so, and use monetary policy to soften recessions is rapidly coming to a close.  Negative rates won't help the economy as much as lowering from say 8% down to 6%.  And at the 0% lower bound, austerity causes unmitigated damage.  Every dollar in federal spending we cut right now removes some $1.40 from the economy as part of the interest rate trap.  The only way out is to float interest rates again and allow higher rates.
/A trillion here, a trillion there.  Pretty soon were talking about real money.
 
5 days ago  

OptionC: Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?

So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?


Only if you aren't Japanese or are a woman.
 
5 days ago  

Northern: OptionC: Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?

So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?

Japan has an ageing population and fewer workers paying taxes.  They are mortgaged to the hilt.  Their options have become limited due to their large debt service payments.
We like to fill the smoking financial craters the government causes with trillions of federal cash.  Our ability to do so, and use monetary policy to soften recessions is rapidly coming to a close.  Negative rates won't help the economy as much as lowering from say 8% down to 6%.  And at the 0% lower bound, austerity causes unmitigated damage.  Every dollar in federal spending we cut right now removes some $1.40 from the economy as part of the interest rate trap.  The only way out is to float interest rates again and allow higher rates.
/A trillion here, a trillion there.  Pretty soon were talking about real money.


You understand that money is just entries in a database, right?
 
5 days ago  

OptionC: Northern: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Low interest rates are enabling the federal government to run budget deficits that would make Reagan, W, and Bernake blush.  This massive borrowing will demand centrally planned interest rates for decades since we can't afford to raise interest rates.  Krugman calls it the 0% interest rate trap.  Japan has been there since 1987.
So while stonks have enjoyed communist style central planning and bailouts, the money will run afoul of debt service payments eventually, demanding austerity.
Or do we just go full communism and ban private finance?  What could go wrong?

So when does "eventually" happen for Japan?

Is "being like Japan" even that bad of a thing?


If you don't see a any issues with Japan, my I remind you of the quote:

There are four kinds of countries in the world: developed countries, undeveloped countries, Japan and Argentina
-Simon Kuznets
 
5 days ago  

AsparagusFTW: Nadie_AZ: Housing is off the rails here. Rental prices, sales- all of it. Food is up.

What are they counting? Bullets? Bombs?

Lumber at least a double, metals going through the roof like copper. And this was the slow season. In 2 months building ramps up. Those prices will only increase. That should stifle new starts and bid up existing homes further because there is no way Powell lets rates rise. Builders hopefully hedged their costs in the futures market, but if they get lumber at 500$ per unit, they are not going to sell that to you in your new home for that. Itll be marked up to market.


Still nothing to be concerned about till the scrap prices rise enough to make recycling worthwhile again.
 
4 days ago  

OptionC: relaxitsjustme: OptionC: relaxitsjustme: Yield on the 10 year been creeping up bro.

1.36% on the 10 year Treasury

How shall we ever survive with rates such as these?

Alexis, show me someone who doesn't understand the 10 year yield and what direction it's trending means.

Alexa, show me someone who who screws up their own dig by calling you the wrong name.

When yields start to approach 0 because of a worldwide pandemic or global recession common sense would suggest that some day yields might go back up again.


I was talking to my GF Anne Murray.
 
4 days ago  

Intrepid00: TDWCom29: Intrepid00: Everything is cool. Stop looking.

One commodity = overall inflation

Study it out

Yep, just an oddity. Stop looking.

Stop looking

Stop


Oh shiat. It's exactly like right before the 2008 crash.
 
4 days ago  
Well, I am just happy I bought some of those early Ibonds back about 2000-2001. Those Jessies are earning 5 percent plus, although it is a pity that I had not the money to load up the truck...  Those were the days- paper bonds were then issued (now only possible via tax refund), and one could buy up to thirty K of them with a credit card (read rewards.) It just goes to show time changes everything.  Good luck-
 
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