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2021 - Is inflation finally back in the conversation?


Reagan1k

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28 minutes ago, Wally Fairway said:

everybody has been promoting deficit spending - some on welfare, some on warfare, some on tax cuts, some on healthcare, oh yeah and the "non-political" FED was printing money like they were going to run out of paper or ink; both sides of the aisle are guilty of putting us trillions into debt.

I never said it was a "sides" issue. I did joke about. I should have added a few exclamation marks to get my point across. Oh, you can also see my ass complaining about the spending under the last regime as well. 

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1 hour ago, jimmyjazz said:

LOL, OK, I don't know what words mean.  You're the big communicator and I'm just an idiot.  Gotcha.

Go back to receipt talks on milk. You're better at that.

 

1 hour ago, Hefeweizen said:

JPow a lib now?  It’s all coming together.  Greenspan was too I guess.

 

 The money printer go Brrrrr meme is not so funny now.

Well he's suppose to be apolitical. He got bitched at for raising interest rates .75% by Liz. What was he supposed to do? Keep spending and keep interest at zero? Soft landing ain't happening, and Liz and her ilk can keep bitching that someone has to take money out of the market.

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3 minutes ago, workswithseed said:

Go back to receipt talks on milk. You're better at that.

 

Well he's suppose to be apolitical. He got bitched at for raising interest rates .75% by Liz. What was he supposed to do? Keep spending and keep interest at zero? Soft landing ain't happening, and Liz and her ilk can keep bitching that someone has to take money out of the market.

Shut. The. Fuck. Up. And go back to your pathetic gofundme panhandling if you’re gonna say that while ignoring the cries to “cut fed rate to zero” during an already insane economic run of prosperity. 

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1 hour ago, Hefeweizen said:

JPow a lib now?  It’s all coming together.  Greenspan was too I guess.

 

 The money printer go Brrrrr meme is not so funny now.

The Fed Put (originally the Greenspan Put) is apolitical. It was welfare for the fabulously wealthy. 
 

“Follow the Fed” was the mantra of the little guy cashing in on the welfare program designed for the wealthy. 

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2 minutes ago, bluto said:

Shut. The. Fuck. Up. And go back to your pathetic gofundme panhandling if you’re gonna say that while ignoring the cries to “cut fed rate to zero” during an already insane economic run of prosperity. 

Why. The. Periods. ?. Run of prosperity for whom? I don't feel richer than i did 3 years ago, do you?

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https://www.bloomberg.com/news/articles/2022-09-23/us-government-debt-shrinks-against-soaring-inflation

Inflation is doing its job.  But I think the Fed is going to have to pause at some point in the future.  Strong dollar is wrecking shop across the globe and once unemployment starts to rise the political pressure will become too great to ignore.  

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2 hours ago, workswithseed said:

I didn't vote for the Inflation bill.

You didn't support the 2017 tax cut and vote for the people who did it? What would happen when either a supply shock or the next recession showed up was pretty extensively discussed at that time. 

Edited by Bozo_Casanova
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4 minutes ago, bluto said:

What happened si

 

5 minutes ago, Bozo_Casanova said:

You didn't support the 2017 tax cut and vote for the people who did it? What would happen when either a supply shock or the next recession showed up was pretty extensively discussed at that time. 

I supported the 2017 tax cuts, and still do. I also think spending should go down too, and we're reaping with what is happening now. I don't think tax increases are going to help if you also spend like a mad man on crack. You're more likely going to get stagflation.

 

 

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3 hours ago, Wally Fairway said:

everybody has been promoting deficit spending - some on welfare, some on warfare, some on tax cuts, some on healthcare, oh yeah and the "non-political" FED was printing money like they were going to run out of paper or ink; both sides of the aisle are guilty of putting us trillions into debt.

Qfmft.  There’s a lot of hands in it, admittedly or not.  

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1 hour ago, workswithseed said:

I don't think tax increases are going to help if you also spend like a mad man on crack.

Financing a tax cut with debt is spending. Thus, it has the same effect from an inflationary  standpoint. That’s why stimulus is a real thing. And look, if the argument is that inflationary stimulus is better when it’s spent by people/business than government that’s a fair point. But don’t pretend that it’s something other than spending. 

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37 minutes ago, Serak The Preparer said:

Reading hot economic takes from someone who claimed in November of 2020 that "Our economy has been basically back to pre Covid" will never not make me laugh.

I wasn't the only one saying it, but as we can tell things have not gotten better. I was wrong. I'm not stupid enough to say otherwise. 

https://www.comerica.com/insights/economic-commentary/november-2020-us-economic-outlook.html

Quote

A snapshot view of the U.S. reveals a positive picture across many dimensions. Headline economic data is improving. Labor market indicators are trending in the right direction. Manufacturing metrics are positive and accelerating. Strong single-family home sales are supporting consumer spending, residential construction and manufacturing. Auto sales have firmed up, boosting activity in a slew of industries. The uncertainty surrounding a cliffhanger election is fading rapidly. Financial markets have responded favorably to the expected outcome of divided government in Washington. The prospects of some additional fiscal stimulus are positive. Monetary policy remains very accommodative. 

 

41 minutes ago, Bozo_Casanova said:

Financing a tax cut with debt is spending. Thus, it has the same effect from an inflationary  standpoint. That’s why stimulus is a real thing. And look, if the argument is that inflationary stimulus is better when it’s spent by people/business than government that’s a fair point. But don’t pretend that it’s something other than spending. 

I can agree with this.

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1 hour ago, Bozo_Casanova said:

Financing a tax cut with debt is spending. Thus, it has the same effect from an inflationary  standpoint. That’s why stimulus is a real thing. And look, if the argument is that inflationary stimulus is better when it’s spent by people/business than government that’s a fair point. But don’t pretend that it’s something other than spending. 

I'm not certain but I believe gross federal tax receipts increased post the 2017 law.  Individual tax receipts increased.  Corporate decreased.  But the net overall resulted in increased revenue for the government.  

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49 minutes ago, babysdaddy said:

I'm not certain but I believe gross federal tax receipts increased post the 2017 law.  Individual tax receipts increased.  Corporate decreased.  But the net overall resulted in increased revenue for the government.  

But for how long and except when it doesn’t anymore.

I’m not saying stimulus doesn’t stimulate because of course it does. That’s what it IS. So course tax revenues increase to some degree for some time. The question with funding spending/tax cutting with debt is a lot like the question with cocaine: not whether it works, but whether it’s worth it.


https://www.forbes.com/sites/christianweller/2020/01/29/trumps-wasteful-tax-cuts-lead-to-continued-trillion-dollar-deficits-in-expanding-economy/amp/

https://www.cbo.gov/publication/54918

And those are the view BEFORE Covid. 

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2 hours ago, 52-80 said:

hey guys what kinda meme stock is this and where can we buy it?

image.thumb.png.1cf7263bd9f7f105b22ab81d5c13501a.png

 

guess all the expectations of a fed pivot is dead x_x

Which will make the whipsaw even more violent when it happens.  
 

Remember the Fed is hiking aggressively to help restore their credibility wrt inflation. What happens when they’re forced to ease into high inflation?

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5 hours ago, babysdaddy said:

https://www.bloomberg.com/news/articles/2022-09-23/us-government-debt-shrinks-against-soaring-inflation

Inflation is doing its job.  But I think the Fed is going to have to pause at some point in the future. ...

For context, see my earlier post:

Debt appears to be shrinking because we shifted debt to a high weighting on the short term while rates were low.  It's only a matter of time for debt to get rolled into service at "new and improved rates." 

You are right about the Fed having a practical and political ceiling for rates.  Debt service is a third prong to the argument that few peeps are really cognizant of at moment.

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The IMF is not pleased with GB. The IMF usually saves this type of admonishment for developing economies.  

“Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy.”

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36 minutes ago, washparkhorn said:

The IMF is not pleased with GB. The IMF usually saves this type of admonishment for developing economies.  

“Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy.”

Ultimately every nation will do what they think benefits them. The tax cuts were probably overdoing it, but a lot of their spending is energy bailouts. 
 

Strong dollar + energy shortage in a given nation = currency debasement

Same thing for Euro and Yen. 
 

Shortages are not abating any time soon, so the only reprieve will be Fed pivot. 

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56 minutes ago, washparkhorn said:

The IMF is not pleased with GB. The IMF usually saves this type of admonishment for developing economies.  

“Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy.”

Like forgiving student loans?

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On 9/26/2022 at 4:14 PM, babysdaddy said:

I'm not certain but I believe gross federal tax receipts increased post the 2017 law.  Individual tax receipts increased.  Corporate decreased.  But the net overall resulted in increased revenue for the government.  

Hard to tell.  This 2020 analysis from the Brookings Institute says that revenue dropped for 2018 from what they would have been without the tax cuts, although revenue did rise: https://www.brookings.edu/policy2020/votervital/did-the-2017-tax-cut-the-tax-cuts-and-jobs-act-pay-for-itself/

The argument is that revenue did go up, like it does most years because of inflation and economic growth, but revenues went up by less than they would have if the tax cut did not happen.

Gross revenues going down is kinda rare.  It generally happens during bad economic times.  That survey links to a spreadsheet showing revenues from 1969-2018.  Revenues fell in 1971, 1983, 2001-2003, 2008-2009.  Those are mostly years around the times of stock market declines.

Personally, as a taxpayer over the past 30 years, it feels like the federal tax burden has gone down and the local property tax burden has increased.

Edited by Texas Jeff
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16 minutes ago, Texas Jeff said:

Hard to tell.  This 2020 analysis from the Brookings Institute says that revenue dropped for 2018 from what they would have been without the tax cuts, although revenue did rise: https://www.brookings.edu/policy2020/votervital/did-the-2017-tax-cut-the-tax-cuts-and-jobs-act-pay-for-itself/

The argument is that revenue did go up, like it does most years because of inflation and economic growth, but revenues went up by less than they would have if the tax cut did not happen.

Gross revenues going down is kinda rare.  It generally happens during bad economic times.  That survey links to a spreadsheet showing revenues from 1969-2018.  Revenues fell in 1971, 1983, 2001-2003, 2008-2009.  Those are mostly years around the times of stock market declines.

Personally, as a taxpayer over the past 30 years, it feels like the federal tax burden has gone down and the local property tax burden has increased.

Tough argument given tax policy is dynamic.  Arguing that tax revenue went up less than it would've otherwise is a hypothetical that can't be proven. And it becomes completely irrelevant once we have a global pandemic that distorts everything imaginable including taxes and stimulus spending.  BC stated that the US financed the tax cuts with debt and the facts don't support that claim.  

And property taxes are an asswhip

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19 hours ago, Humble Beast said:

I hadn’t thought of pensions being the reason for a forced pivot, but it looks like they were the culprit in UK.  Thus, QE returns with 10% inflation there. 
 

 

why are pension funds holding assets using leverage/margins? 

this shouldn't be a thing.

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