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Friday, July 23, 2021

Fed says inflation will hit 31-year high

The Federal Reserve Bank of New York announced, "The June 2021 Survey of Consumer Expectations shows that median inflation expectations at the short-term horizon climbed 0.8 percentage point to 4.8%, while inflation expectations at the medium-term horizon remained unchanged. Households’ labor market expectations continued to improve, with unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—decreasing to 30.7% from 31.9% in May."

While it is nice that unemployment likely won't rise, if inflation hits 4.8% for the year, Biden will have pushed inflation to its highest level since 1990, when Bush 41 was president.

Reagan inherited 12.5% inflation when he became president. He knocked it down to 3.8% in two years and knocked it to 1.1% in six years.

Biden inherited 1.2% inflation (down from the 2.1% Trump inherited). 

In less than six months on the job, Biden has it at 5.4%.

Axios reported, "A top party pollster and senior adviser to the Biden political team is urging Democrats to confront the problem of rising prices — which she says is starting to bite with voters.

"Driving the news: Celinda Lake, who polled for the Biden presidential campaign and still advises Team Biden, told Axios that worries about inflation are coming through loud and clear in both public polls and her own focus groups."

Lake said, "Women voters are really experiencing it, because they're always more focused on kitchen table economics, microeconomics."

Well, that's the stereotype, isn't it? You gals are worried about the prices at the supermarket while we men grunt and talk about cars.

Inflation is a genie in the bottle, easy to let out but oh so hard to get back in.

At his half-empty townhall meeting, Biden said, "The vast majority of the experts, including on Wall Street, are suggesting that it's highly unlikely that long term inflation is going to get out of hand."

And the stock market is always right.

Biden said we can spend our way out of inflation.

He said, "If we pass the other two things that I want to get done we will, in fact, reduce inflation."

If that fails, he can always do what Jerry Ford did and pass out Whip Inflation Now buttons.

Hunter can design them for a hefty fee and Joe's brother can print them up.

43 comments:

  1. I have my doubts regarding what they are saying about inflation. My belief is that this will be on par with Venezuela and possibly even Weimar Germany. They want run away inflation for several reasons, one, it will outpace interest and negate our crushing national debt. Two, it destroys savings and forces dependency. Three, the impact on trade, no one will want our products because of the price spike. We sell today, bill tomorrow, and when we get paid next week, the money is worthless, so demand will be for prepayment, or COD.

    ReplyDelete
    Replies
    1. I was expecting this to happen under Barry, million dollar bread, we might see it in the next few years

      Delete
    2. Hey Karen, if you love inflation that much, move to Venezuela.

      Delete
    3. I can do you one better, Jeremy R. I predict that the US dollar will inflate to Zimbabwe levels. Outhouses will have signs saying not to use US dollars for toilet paper. Or not, you nitwit.

      Delete
    4. Edweenie with the Jeffrey nonsense still.

      Don, how long do intend to allow this guy to insult everyone on the blog--unprovoked no less?

      Delete
    5. Special Ed is a few slices short of a loaf. He clearly doesn't understand hyperbole.

      Delete
    6. Ho Ho, Hey Hey
      How much money is Jake gettin paid?

      Delete
  2. Inflation means everything keeps getting more expensive because rich people keep stealing money from everyone.

    ReplyDelete
    Replies
    1. Good Commie agitprop. Too bad people know prices get high for everybody.

      Delete
    2. It’s too bad that you caught that knife through both of your lonely brain cells.

      Delete
    3. This comment has been removed by the author.

      Delete
  3. Back to the '70s. Like Instatpundit says, good and hard until voters understand what they are voting for and how hey got into this mess.

    ReplyDelete
  4. Now I wish I had kept my NIM button. Probably worth a fortune soon.

    ReplyDelete
    Replies
    1. Ah. 'No Immediate Miracles'. I remember that. Gerry wasn't as dumb as he let on!

      Delete
  5. So... "A top party pollster and senior adviser to the Biden political team is urging Democrats to confront the problem of rising prices". Given that they do everything wrong, they will probably institute wage and price controls as their "solution".

    ReplyDelete
  6. "(Sniffy) said, 'The vast majority of the experts, including on Wall Street, are suggesting that it's highly unlikely that long term inflation is going to get out of hand.'"

    This is kinda rich, because all these experts are... quoting sniffy et al. The junta wants to believe that their printing up play money galore won't cause problems, and told the "experts" to say that so that they can then quote them.

    And the "consensus" that they are trying to clap their hands and believe really hard is that if the federal government floods the country with "stimulus" money and orders the Fed to hold interests at zero... everything will be fine.

    Funny thing is that as per something that floated by last week, the junta is already cooking the books. As someone pointed out earlier this week (at Prof. Reynolds' place), they changed how the rate of inflation is calculated - and that if they used the method that was used back in the 1970s, inflation now would be in the 10% - 15% range.

    ReplyDelete
    Replies
    1. "...orders the Fed to hold interests at zero"

      should be "... orders the Fed to hold interest rates at zero."

      Sorry, it's Friday and it's been a long week...

      Delete
  7. Regarding the political implications of inflation, one commentator 40 years ago said, "Inflation is like sin. Everybody is against it." This is what the Democrats face next year as long as the Republicans keep the election shenanigans under tight surveillance.

    ReplyDelete
  8. The markets took a beating earlier this week, but the last three days have seen it roar back and end with a massive weekly gain. The fix must be in to ensure the stock prices don’t reflect the disaster Xiden is unleashing.

    ReplyDelete
    Replies
    1. Equities actually make a pretty good hedge against inflation.

      Delete
    2. The stock market is at best an abstraction, at many removes from the actual economy of production, buying, and selling of actual goods and services.

      Delete
  9. "The vast majority of the experts, including on Wall Street, are suggesting that it's highly unlikely that long term inflation is going to get out of hand."

    What the hell does this mean??

    ReplyDelete
    Replies
    1. Nothing. Just admitting they have no clue, but they have to protect the Demos.

      Delete
    2. Have they ever been wrong before? They are the top people in their field(s).

      Delete
    3. Yes, these "experts" are wrong more often than not.

      Delete
  10. It's cool. Another reason people will be demanding Trump's reinstatement.

    ReplyDelete
  11. Instead of "half-empty" use the more accurate term "almost-empty."

    ReplyDelete
  12. I remember the "WIN" buttons. I turned mine upside down to mean "No Immediate Miracles"

    ReplyDelete
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  17. We will have inflation, but whatever the "economists" predict, they WILL be SURPRISED when the weren't even close to the reported number.

    I'm still waiting for the headline: Economists get it right.

    Wake me when you find one.

    ReplyDelete
    Replies
    1. Remember the buttons back in the 60s that said “Clapton Is God”? Today’s “economists” all but wear buttons that say “Krugman Is God.” Paul Krugman couldn’t find his ass with both hands.

      Delete
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