Gyroscopic Investing

Am I right?

Allowing this inflation rate is insane in criminal.


They're trying to drive the American people into the poor house.

Skilled, in-demand labor can negotiate higher wages. The public votes for higher minimum wage laws. The way around that, to increase low-skill employment, is inflation

The effect of the currency destruction will extend well beyond minimum wage workers

murphy_p_t wrote: ↑Wed Apr 13, 2022 4:33 pm
Allowing this inflation rate is insane in criminal.


They're trying to drive the American people into the poor house.

How do you explain this inflation not being confined to the United States but being prevalent all around the world?

Reserve currency. They need to maintain exchange rates.

Also, it's a currency war against China and other large holders of US debt... Making the value of the US debt to these foreign countries evaporate.

Financial repression here at home

Or we could go with what is the actual reason...super loose money combined with scarcity. The former does not cause inflation, the two together do create it and we have both going on.

Until supply gets unscrewed (or demand gets crushed) inflation is here for a while. I don't see the Fed crushing demand anytime soon. It hasn't been in their kitbag since the early 80s and I think they will be slow to react as they've been fighting deflation from 2007 to 2021. People are slow to move on to new realities...Fed history suggests they are just like the rest of us in this respect.

Kbg wrote: ↑Thu Apr 14, 2022 10:24 am Or we could go with what is the actual reason...super loose money combined with scarcity. The former does not cause inflation, the two together do create it and we have both going on.

Until supply gets unscrewed (or demand gets crushed) inflation is here for a while. I don't see the Fed crushing demand anytime soon. It hasn't been in their kitbag since the early 80s and I think they will be slow to react as they've been fighting deflation from 2007 to 2021. People are slow to move on to new realities...Fed history suggests they are just like the rest of us in this respect.

Great observation - might turn this into its own thread based on what we have given up due to inflation (demand slow down)

GT wrote: ↑Thu Apr 14, 2022 11:05 am

Kbg wrote: ↑Thu Apr 14, 2022 10:24 am Or we could go with what is the actual reason...super loose money combined with scarcity. The former does not cause inflation, the two together do create it and we have both going on.

Until supply gets unscrewed (or demand gets crushed) inflation is here for a while. I don't see the Fed crushing demand anytime soon. It hasn't been in their kitbag since the early 80s and I think they will be slow to react as they've been fighting deflation from 2007 to 2021. People are slow to move on to new realities...Fed history suggests they are just like the rest of us in this respect.

Great observation - might turn this into its own thread based on what we have given up due to inflation (demand slow down)

Yep...doing without, substitution and making due with things longer are well known/documented consumer behaviors during inflation (and interestingly the reverse...pulling purchases forward "because the price is just going to be higher later").

I remember as a kid my family was very much about needs vs. wants. Patching jeans with holes in the knees, hand me downs, school clothes once a year and the list goes on. Quite a few of our needs these days aren't actually needs.

Kbg wrote: ↑Thu Apr 14, 2022 2:44 pm

GT wrote: ↑Thu Apr 14, 2022 11:05 am Great observation - might turn this into its own thread based on what we have given up due to inflation (demand slow down)

Yep...doing without, substitution and making due with things longer are well known/documented consumer behaviors during inflation (and interestingly the reverse...pulling purchases forward "because the price is just going to be higher later").

I'm probably stating the obvious but doing without is a deflationary pressure whereas pulling purchase forward just adds to ongoing inflation. I have a Brazilian friend who moved to the US around 1990 and has been living here ever since. When she first got here, the concept of buying financial assets was totally foreign to her. In Brazil she and her family would always buy stuff as soon as they could because prices were going up so fast and had been doing so for a long time.

The 2021 housing boom (don't know if it's still booming or not) seemed at least in part to be driven by this later phenomenon. But most of what my wife and I are experiencing now is just stuff that we need to buy (gas for necessary business driving, food, etc.) being more expensive across the board. And to help offset what we have to pay for necessities, we've chosen to raise prices for our services rendered. I realize that last part is common practice but it took about six months for us to actually take action. My career was just getting going in the early 1980s so, for the most part, I had never actively participated with my own money in an inflationary environment. It was just one of those things that my dad used to gripe about from time to time.