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(CNBC)   Powell says he can afford recent consumer price increases, the inflation is a lie, and the money trough will remain open for the foreseeable future   (cnbc.com) divider line
    More: Followup, Monetary policy, Federal Reserve System, Central bank, Federal Reserve Chairman Jerome Powell, Unemployment, Inflation, central bank, labor market  
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381 clicks; posted to Business » on 14 Jul 2021 at 7:25 PM (20 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



16 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-07-14 7:33:36 PM  
Don't raise rates until I'm in my home.
 
2021-07-14 8:37:46 PM  
I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.
 
2021-07-14 8:41:27 PM  
Wait, the White House tweeted that the cost of the July 4 cookout actually went down this year and was patting itself on the back on how the Biden economic plan was working. What inflation? There's zero inflation if everything you buy is made of cheese slices.
 
2021-07-14 8:52:05 PM  

dirkfunk: I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.


What is the psychological barrier?  Poor people thinking $100k/year is rich?  Middle class people seeing $100k/year as a goal?
 
2021-07-14 10:19:44 PM  
The issue is that price inflation is being driven by weakness in the supply chain, not because of excess money supply.
 
2021-07-14 10:19:59 PM  

Izunbacol: dirkfunk: I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.

What is the psychological barrier?  Poor people thinking $100k/year is rich?  Middle class people seeing $100k/year as a goal?


It's management getting cold feet as employees approach $100k like it's some impenetrable wall, and letting educated professionals walk rather than paying over 100k. Maybe my observation is off base, but practically every millennial I know is either stuck just under $100k/year (unless they quit and pursued salary for salaries sake) or in management (where you can be incompetent and make more than your highly skilled employees). I really think boomers generally still think a six figure incomes is some huge salary and don't understand that paying people 90s wages isn't cutting it. And I think that's just because inflation has been so low that they haven't felt the change, and readjusted expectations.
 
2021-07-14 10:59:28 PM  

Izunbacol: dirkfunk: I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.

What is the psychological barrier?  Poor people thinking $100k/year is rich?  Middle class people seeing $100k/year as a goal?


I'm thinking more along the lines of low-class people thinking neither group is worth more than $25-50k/year.
 
2021-07-14 11:07:01 PM  
Subby, please, stop playing into the hands of Redcap disinformation agents trying to make the Fed overcorrect and cause a recession just in time for the midterms. Powell himself knows better, and said so.

Note that none of the genteel Redcaps screaming about roaring inflation or the deficit said boo while Trump was still in the White House.

Printing money and lending it out free of charge (to white people) is another thing that's apparently okay if, and only if, the president is a Republican otherwise looking at defeat in anything resembling an honest election.

The long-run inflation expectations of people with money riding on it (measured by the nominal bond yield premium over inflation-indexed bond yields) are at 2.3 percent, close to the Fed's two percent target, and falling since May, when it peaked at 2.5 percent.

Look it up, subby. Get back to us when that premium is at least three percent and remains above three percent. I'll wait.
 
2021-07-14 11:32:58 PM  

dirkfunk: Izunbacol: dirkfunk: I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.

What is the psychological barrier?  Poor people thinking $100k/year is rich?  Middle class people seeing $100k/year as a goal?

It's management getting cold feet as employees approach $100k like it's some impenetrable wall, and letting educated professionals walk rather than paying over 100k. Maybe my observation is off base, but practically every millennial I know is either stuck just under $100k/year (unless they quit and pursued salary for salaries sake) or in management (where you can be incompetent and make more than your highly skilled employees). I really think boomers generally still think a six figure incomes is some huge salary and don't understand that paying people 90s wages isn't cutting it. And I think that's just because inflation has been so low that they haven't felt the change, and readjusted expectations.


Fark user imageView Full Size

Obviously satirical, but was written 40 years ago. Sadly this joke still works today as 100k salaries are still out of reach for most.
 
2021-07-15 12:30:54 AM  
"when the central bank will begin tapering its minimum $120 billion a month in bond purchases"

Jesus on a goat, that's absurd! i mean we talked about it when the Fed decided to move into bond purchases but God Jesus Mary Joseph, two blind elephants, and a flatulent rhinoceros, they are propping up a huge amount of debt and likely taking somewhere between little to no risk.

It's almost all profit.
 
2021-07-15 12:43:05 AM  

recondite cetacean: "when the central bank will begin tapering its minimum $120 billion a month in bond purchases"

Jesus on a goat, that's absurd! i mean we talked about it when the Fed decided to move into bond purchases but God Jesus Mary Joseph, two blind elephants, and a flatulent rhinoceros, they are propping up a huge amount of debt and likely taking somewhere between little to no risk.

It's almost all profit.


And they'll keep it going as long as possible until they feel like busting the bubble. Of course the bigger the bubble is the more pain there will be for common people, but they don't matter. Bailing wire and duct tape for the economy and start pumping it again.
 
2021-07-15 12:45:04 AM  

dirkfunk: Izunbacol: dirkfunk: I'm all about some inflation. There is a serious psychological barrier regarding 6 figure incomes that we need to get past as a country and inflation is the hammer to break that barrier.

What is the psychological barrier?  Poor people thinking $100k/year is rich?  Middle class people seeing $100k/year as a goal?

It's management getting cold feet as employees approach $100k like it's some impenetrable wall, and letting educated professionals walk rather than paying over 100k. Maybe my observation is off base, but practically every millennial I know is either stuck just under $100k/year (unless they quit and pursued salary for salaries sake) or in management (where you can be incompetent and make more than your highly skilled employees). I really think boomers generally still think a six figure incomes is some huge salary and don't understand that paying people 90s wages isn't cutting it. And I think that's just because inflation has been so low that they haven't felt the change, and readjusted expectations.


A typical Fortune 500 company will have a salary range for your position, and give you a raise according to effectively your manager's opinion multiplied by some ratio of how close you are to the maximum for the position.  If you're not earning enough, job search.  My manager apologised for the smaller percentage increase last year, due to that ratio.  I'm fine with it.

If you don't have some form of salary range for your position, it's always going to be a lowball.  I'm doing the same thing at 108k that I was doing at 24k in the oughts.

It's not some psychological barrier, it's the lowball.  When I quit, my manager's manager offered to beat my offer.  If I'm worth that much, why haven't you been paying me that much?

You have to play the game, in short.  Some people are not going to win the game.  Management is not concerned about 95k vs 100k.  Management wants to retain talent at a price point that feeds the bottom line.  Anecdotes, in other words, are not evidence.
 
2021-07-15 12:48:28 AM  

RedVentrue: recondite cetacean: "when the central bank will begin tapering its minimum $120 billion a month in bond purchases"

Jesus on a goat, that's absurd! i mean we talked about it when the Fed decided to move into bond purchases but God Jesus Mary Joseph, two blind elephants, and a flatulent rhinoceros, they are propping up a huge amount of debt and likely taking somewhere between little to no risk.

It's almost all profit.

And they'll keep it going as long as possible until they feel like busting the bubble. Of course the bigger the bubble is the more pain there will be for common people, but they don't matter. Bailing wire and duct tape for the economy and start pumping it again.


I'm really uncertain on what the bubble pop  will mean.  A slow draw down, a quick draw down, a massive fire sale on bonds sending stocks to the stratosphere. No way to know at this point I suppose.
 
2021-07-15 10:04:01 AM  

Stile4aly: The issue is that price inflation is being driven by weakness in the supply chain, not because of excess money supply.


Or stock owners want more Precious every quarter.....
 
2021-07-15 10:05:16 AM  

RedVentrue: recondite cetacean: "when the central bank will begin tapering its minimum $120 billion a month in bond purchases"

Jesus on a goat, that's absurd! i mean we talked about it when the Fed decided to move into bond purchases but God Jesus Mary Joseph, two blind elephants, and a flatulent rhinoceros, they are propping up a huge amount of debt and likely taking somewhere between little to no risk.

It's almost all profit.

And they'll keep it going as long as possible until they feel like busting the bubble. Of course the bigger the bubble is the more pain there will be for common people, but they don't matter. Bailing wire and duct tape for the economy and start pumping it again.


Aint Freedumb great!!
 
2021-07-15 2:52:20 PM  

recondite cetacean: RedVentrue: recondite cetacean: "when the central bank will begin tapering its minimum $120 billion a month in bond purchases"

Jesus on a goat, that's absurd! i mean we talked about it when the Fed decided to move into bond purchases but God Jesus Mary Joseph, two blind elephants, and a flatulent rhinoceros, they are propping up a huge amount of debt and likely taking somewhere between little to no risk.

It's almost all profit.

And they'll keep it going as long as possible until they feel like busting the bubble. Of course the bigger the bubble is the more pain there will be for common people, but they don't matter. Bailing wire and duct tape for the economy and start pumping it again.

I'm really uncertain on what the bubble pop  will mean.  A slow draw down, a quick draw down, a massive fire sale on bonds sending stocks to the stratosphere. No way to know at this point I suppose.


No way for us to know. I bet the big players that manipulate our economy have a pretty good idea.
 
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