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(Business Insider)   Welcome back, our old friend, Inflation. Been awhile since you've graced our pocketbooks, budgets   (businessinsider.com) divider line
    More: Scary, Inflation, Bond market, Economics, Monetary policy, Bond, Commodity market, Treasury yields, Money  
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824 clicks; posted to Business » on 01 Mar 2021 at 5:43 AM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



23 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-03-01 1:10:28 AM  
Bullshiat, its been in housing
 
2021-03-01 1:15:47 AM  
Back?  They just pretend it doesn't exist under Republican presidents and fake presidents.
 
2021-03-01 1:36:56 AM  
Funny how being in the midst of a pandemic where many people can't even afford groceries tends to reduce demand.
 
2021-03-01 1:54:25 AM  
Having become financially cognizant in the 70's an 80's, the last few decades have been comparatively tame. Of course, a lot of that has been off-shoring, decreases in quality, and size manipulation (ice cream in standard half-gallons, remember those?), plus gas prices more or less steady ($1/gallon in 1977 adjusts to over $4 now). For a long time, I would mentally add about 5% to what I was expecting to pay because prices seemed to go up weekly. It took a while to unlearn it because it was always a pleasant surprise when some things were priced the same as the last time. I've noticed that it's time to relearn it for some things, sadly.

/Buying super-sale stuff in quantity
//Fortunate to have competing supermarkets within one-lap shopping trip distance
///Going to need a bigger pantry and freezer
 
2021-03-01 3:16:11 AM  
Inflation in the 1980s made my working-class parents millionaires, because their 30-year fixed mortgage payment of $300 in 1971 which had them in the poorhouse (dad had a $5 weekly lunch budget back then) remained the same by 2001, and they could put all of their surplus income into growth funds. Dad was an HVAC technician who went into management, and mom was/is a legal secretary, she's still working just to keep herself busy after dad passed.

If at all possible I intend to use any surplus we have to pay down the principal of my mortgage and save a fortune in interest.
 
2021-03-01 6:11:30 AM  

Alphax: Back?  They just pretend it doesn't exist under Republican presidents and fake presidents.


Inflation is good, so your statement and the scary tag is somewhat confusing.

Though I am not so sure I'll see it here in Denmark, the Danish Krone is under preassure for being overvalued, so the banks require a negative interest rate.

And interestingly enough, you're paid money to loan. Loan into a house, and you'll have to repay less than the amount, all the while the value of the house also goes up.
 
2021-03-01 6:52:12 AM  

Alphax: Back?  They just pretend it doesn't exist under Republican presidents and fake presidents.


The fact that you said this and 5 people smarted it shows just how far this place has declined. Seriously, read a f*cking book.
 
2021-03-01 6:53:06 AM  
And f*ck anybody who says we should be worried about inflation. They just don't want the stimulus and other similar measures to pass.
 
2021-03-01 7:17:33 AM  

make me some tea: Inflation in the 1980s made my working-class parents millionaires, because their 30-year fixed mortgage payment of $300 in 1971 which had them in the poorhouse (dad had a $5 weekly lunch budget back then) remained the same by 2001, and they could put all of their surplus income into growth funds. Dad was an HVAC technician who went into management, and mom was/is a legal secretary, she's still working just to keep herself busy after dad passed.

If at all possible I intend to use any surplus we have to pay down the principal of my mortgage and save a fortune in interest.


If I had onerous college loans, I'd be a huge fan of inflation.
If I were stuck on a fixed income pension, I'd hate it.
I like some inflation as it forces people with piles of money to spend it, invest it, or lose it.
 
2021-03-01 7:42:16 AM  
Good thing the Fed can lower interest rates to counteract...oh, wait.
 
2021-03-01 7:59:11 AM  
No increase in the minimum wage, increase in daily, weekly and monthly expenses.

How is this good for the majority of workers?
 
2021-03-01 9:00:23 AM  

Tyrone Slothrop: Good thing the Fed can lower interest rates to counteract...oh, wait.


Fun fact. Interest rates can go negative and have in many other countries in the world. 0 isn't the end of the scale, it's just value on the scale.

Also, if you want to counteract inflation, you spike interest rates up, which they have plenty of room to do.
 
2021-03-01 9:11:58 AM  
Why aren't we talking about the photo in TFA with people wearing masks incorrectly. Are they just that ignorant, and need a simple explanation? Are they whiny and feel like if it covers their nose it's too hot/itchy/funny looking? Are they making a malicious defense of "freedom"?
 
2021-03-01 9:50:35 AM  

keldaria: Tyrone Slothrop: Good thing the Fed can lower interest rates to counteract...oh, wait.

Fun fact. Interest rates can go negative and have in many other countries in the world. 0 isn't the end of the scale, it's just value on the scale.

Also, if you want to counteract inflation, you spike interest rates up, which they have plenty of room to do.


Real rates are already negative.

They cant raise rates tho. Last time they did markets tanked 20% end of 2018. They have already pointed out they will not allow markets to fall. Rates will not be allowed to move up naturally. YCC will happen. Just a matter of when.

Gotta keep this shiatshow propped.
 
2021-03-01 10:44:09 AM  

AsparagusFTW: YCC will happen. Just a matter of when.


What is this?
 
2021-03-01 10:52:07 AM  

Nadie_AZ: AsparagusFTW: YCC will happen. Just a matter of when.

What is this?


It means buy bitcoin, sit back and enjoy the USD shiatshow.
 
2021-03-01 11:01:20 AM  
I'd never heard of it before. That's why I asked.

"Pointing to the recent BoJ experience, advocates of YCC believe that the Fed also can achieve lower interest rates with a much smaller balance sheet than it built under QE.2 Not everyone is confident that YCC will work. An opinion piece in Bloomberg has described YCC as a "bond trader's nightmare," citing lengthy periods in which JGB trading has ground to a halt. Moreover, YCC could spur companies to increase their already heavy debt loads, while punishing pension funds and other savers."

https://www.investopedia.com/what-is-​y​ield-curve-control-4797189
 
2021-03-01 11:01:25 AM  

Nadie_AZ: AsparagusFTW: YCC will happen. Just a matter of when.

What is this?


Yield curve control.

Inflation expectations causes a rise in market rates. We saw it happen last week and stocks sold off at the end of the week 2 days.

Itll fark over our borrowing costs and crash the markets. JPow wont allow that (see end of 2018). So they will step in and buy more bonds with printed dollars to combat the rise in rates. Thatll continue the charade and drive asset prices even higher.
 
2021-03-01 11:05:31 AM  

Earl of Chives: Nadie_AZ: AsparagusFTW: YCC will happen. Just a matter of when.

What is this?

It means buy bitcoin, sit back and enjoy the USD shiatshow.


Fark user imageView Full Size


Agrees.
 
2021-03-01 11:09:19 AM  

SirEattonHogg: Earl of Chives: Nadie_AZ: AsparagusFTW: YCC will happen. Just a matter of when.

What is this?

It means buy bitcoin, sit back and enjoy the USD shiatshow.

[Fark user image image 640x360]

Agrees.


Bitcoin is going to cause assets to be repriced sooner than later. I didnt think it could happen. But now I see it as when.

When it routinely stays over 1T, it is going to get nutty. Bond and equity markets will feel it.
 
2021-03-01 11:25:05 AM  
Fark user image
 
2021-03-01 11:40:04 AM  
Sure, so long as wages rise fast enough to both keep track with and surpass it. otherwise you're just making an existing problem worse.
 
2021-03-01 11:50:14 AM  

keiverarrow: Bullshiat, its been in housing


And healthcare, an expense that barely existed decades ago.
 
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