The INFLATION Thread, aka “The Putin Price Hike” (1 Viewer)

[Max Power]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

 

[fruity pebbles]

Can't imagine having a $1000 car payment in this environment. That's going to get ugly.

 

[Juxtatarot]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

People have borrowed money for food throughout the country’s history. Technology is just letting them do it in different ways.

 

[Max Power]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

People have borrowed money for food throughout the country’s history. Technology is just letting them do it in different ways.

And you have to acknowledge those were not the best of times. We're going backwards, but according to Biden this is the economy that works for everyone. I'd disagree.

 

[Rich Conway]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

I don't know that it necessarily follows that people have to use BNPL schemes to buy food just because they are using BNPL schemes. I think there's lots of people that just aren't very good with money.

 

[Snotbubbles]

Can't imagine having a $1000 car payment in this environment. That's going to get ugly.

I have 2 cars total payments are $1000. March I pay one off and cut that number in half. Woo Hoo!

 

[Max Power]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

I don't know that it necessarily follows that people have to use BNPL schemes to buy food just because they are using BNPL schemes. I think there's lots of people that just aren't very good with money.

We have a food affordability problem in America. These BNPL apps are just another example. Inflation is killing the working poor on basic needs. The lower middle class is next on the chopping block and it's coming for them as we speak.

The NYT is even addressing as much.

More Americans Are Going Hungry, and It Costs More to Feed Them (Published 2022)

The director of the nation’s largest network of food banks is seeing support dwindle as need rises: “You’re in the middle of a battle, and people are leaving the field.”

www.nytimes.com

 

[fruity pebbles]

Can't imagine having a $1000 car payment in this environment. That's going to get ugly.

I have 2 cars total payments are $1000. March I pay one off and cut that number in half. Woo Hoo!

If you can afford it all the power to you but I know several people who I know make 40-50k a year with a car payment in the $800-1000 range. That’s financial suicide.

 

[Max Power]

More hungry Americans are using food banks for the first time

As inflation drives up grocery prices, food pantries around the U.S. report a jump in people asking for help.

www.cbsnews.com

Food pantries across the U.S. say they're struggling to meet demand as the rising cost of groceries is forcing more Americans to opt for donated meals.

A recent survey from Feeding America, a nonprofit network of 200 food banks, found that 155 food pantries reported a jump in families coming to their door.

The increase in people seeking help from food banks is also taxing pantries' own resources. In the past, Wilson said her pantry typically received 700 boxes of food to donate — that number is now around 100.

 

[Sand]

Something on the news yesterday that bothered me greatly: many people are now financing their grocery bills. Buy now, pay for the groceries in installments later on- with interest.

This can’t be good.

1/3 of people earning 200k+ are paycheck to paycheck. This is no surprise.

 

[Sand]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

I don't know that it necessarily follows that people have to use BNPL schemes to buy food just because they are using BNPL schemes. I think there's lots of people that just aren't very good with money.

We have a food affordability problem in America. These BNPL apps are just another example. Inflation is killing the working poor on basic needs. The lower middle class is next on the chopping block and it's coming for them as we speak.

The NYT is even addressing as much.

More Americans Are Going Hungry, and It Costs More to Feed Them (Published 2022)

The director of the nation’s largest network of food banks is seeing support dwindle as need rises: “You’re in the middle of a battle, and people are leaving the field.”

www.nytimes.com

In a relative sense food in the US is significantly cheaper than other 1st world countries. It really isn't a food price issue.

 

[The General]

Something on the news yesterday that bothered me greatly: many people are now financing their grocery bills. Buy now, pay for the groceries in installments later on- with interest.

This can’t be good.

1/3 of people earning 200k+ are paycheck to paycheck. This is no surprise.

I have seen similar stats like this. I would be curious to see the breakdown of these people's monthly expenses.

 

[Max Power]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

I don't know that it necessarily follows that people have to use BNPL schemes to buy food just because they are using BNPL schemes. I think there's lots of people that just aren't very good with money.

We have a food affordability problem in America. These BNPL apps are just another example. Inflation is killing the working poor on basic needs. The lower middle class is next on the chopping block and it's coming for them as we speak.

The NYT is even addressing as much.

More Americans Are Going Hungry, and It Costs More to Feed Them (Published 2022)

The director of the nation’s largest network of food banks is seeing support dwindle as need rises: “You’re in the middle of a battle, and people are leaving the field.”

www.nytimes.com

In a relative sense food in the US is significantly cheaper than other 1st world countries. It really isn't a food price issue.

Just out of curiosity, what metric is being used for this? % of income vs % spent on food?

 

[Summer Wheat]

NEWSWEEK: This week's consumer price index report shows annual inflation still roaring at 8.3 percent. Even without food and energy included, core inflation rose back above six percent year-on-year, according to the U.S. Bureau of Labor Statistics.

This means the Fed will almost certainly raise interest rates by another three-quarters of a point when it meets next week. And then it will probably keep raising rates.

How much economic "pain," as Fed Chair Jerome Powell recently called it, will be needed to control the worst breakout of U.S. inflation since the 1980s.

Researchers at the International Monetary Fund are now saying that the unemployment rate may need to reach as high as 7.5 percent—double its current level—to end the country's outbreak of high inflation. This would entail job losses for about 6 million people.

• 
  
• 
  Who will bear this pain?
• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

 

[Max Power]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

 

[beef]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

 

[Summer Wheat]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

I agree, and we have the Biden`s partying with other elites drinking champagne with James Taylor at the WH on the day the new rising inflation numbers came out and the market tumbled. Politicians have no shame.

 

[beef]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

I agree, and we have the Biden`s partying with other elites drinking champagne with James Taylor at the WH on the day the new rising inflation numbers came out and the market tumbled. Politicians have no shame.

As long as people keep focusing on R's vs. D's, D's vs. R's, the real war of "Rich vs Poor" continues on.

 

[Summer Wheat]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

I agree, and we have the Biden`s partying with other elites drinking champagne with James Taylor at the WH on the day the new rising inflation numbers came out and the market tumbled. Politicians have no shame.

As long as people keep focusing on R's vs. D's, D's vs. R's, the real war of "Rich vs Poor" continues on.

It has always been that way no matter the party.

Politics is a huge, lucrative business. not only for people in office but for family members who reap the profits as well. Trumps kids, Bidens kids, Omar gave 2.7 million to her husbands business, Waters pays daughter 150K for paperwork. The list is endless.

 

[Sand]

People spending above their means isn't exactly a new development. I mean, Rent-A-Center has been in business in 1986. The crash of 2008 was almost entirely due to people taking loans (or businesses offering loans, if you prefer) they couldn't afford. The US public isn't good at delayed gratification and the rise of the internet and social media has made it worse.

Sure, but people are now using it to buy food.

Indeed. Because some enterprising app developer realized that people will spend above their means on anything they can and capitalized on that realization. In other words, it's not that people weren't willing to do it for food before, it's that there wasn't an app for it*.

* Obviously, there have been credit cards for a long time, but many of the people currently using these BNPL apps likely couldn't get credit cards or had cards with very low limits.

I get that, but the concern now is that people have to put food on that app. Going into debt to afford food just highlights how hard inflation is really hitting people.

When spending beyond your means is associated with bringing too much food home from the grocery store, this country is in a bad place.

I don't know that it necessarily follows that people have to use BNPL schemes to buy food just because they are using BNPL schemes. I think there's lots of people that just aren't very good with money.

We have a food affordability problem in America. These BNPL apps are just another example. Inflation is killing the working poor on basic needs. The lower middle class is next on the chopping block and it's coming for them as we speak.

The NYT is even addressing as much.

More Americans Are Going Hungry, and It Costs More to Feed Them (Published 2022)

The director of the nation’s largest network of food banks is seeing support dwindle as need rises: “You’re in the middle of a battle, and people are leaving the field.”

www.nytimes.com

In a relative sense food in the US is significantly cheaper than other 1st world countries. It really isn't a food price issue.

Just out of curiosity, what metric is being used for this? % of income vs % spent on food?

I believe so, it's been a bit since I read it.

 

[Sand]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

I agree, and we have the Biden`s partying with other elites drinking champagne with James Taylor at the WH on the day the new rising inflation numbers came out and the market tumbled. Politicians have no shame.

As long as people keep focusing on R's vs. D's, D's vs. R's, the real war of "Rich vs Poor" continues on.

It has always been that way no matter the party.

Politics is a huge, lucrative business. not only for people in office but for family members who reap the profits as well. Trumps kids, Bidens kids, Omar gave 2.7 million to her husbands business, Waters pays daughter 150K for paperwork. The list is endless.

Harry Reid's kid, Manchin's wife.

 

[fruity pebbles]

Who will bear this pain?

• Not corporate executives. Not Wall Street. Not big investors. Not the upper-middle class.
• The draftees into the war on inflation will be who they already are: lower-wage workers. As the economy cools due to interest rate hikes, they will be first to be fired as the economy plunges. They will also be the last to be hired.

The middle class has been shrinking for years. I worry the next year or two is going to accelerate it. I don't know where or how this ride ends, but I don't like it.

Not just years, it's been decades. But don't worry everyone. Our politicians will make sure to bail out the mega corporate banks when the middle class and poor's credit card defaults get way out of control.

I agree, and we have the Biden`s partying with other elites drinking champagne with James Taylor at the WH on the day the new rising inflation numbers came out and the market tumbled. Politicians have no shame.

As long as people keep focusing on R's vs. D's, D's vs. R's, the real war of "Rich vs Poor" continues on.

Been like this for a long time. Two sides of the same coin. Convinced it's like the WWE where everyone goes out drinking after the show. Keep the people focused on their team against the other team, nobody pays attention to them stealing money out the back door.

 

[Rubiobot]

Fed Ex Chairman expects "worldwide" recession

 

[FairWarning]

it will be interesting to see the affect of the railroad deal has on prices also. It is a heck of a raise for them..

 

[GoBirds]

Great time to have zero leadership.

 

[Max Power]

it will be interesting to see the affect of the railroad deal has on prices also. It is a heck of a raise for them..

Prices are going to go up for sure. Inflation is the gift that keeps on giving. That said, I'm thrilled a deal got done. It was going to get real ugly if the railways shut down for any extended period.

 

[Max Power]

TIL about cpi. The inflation rate for goods can be calculated using "similar items". Example If the sugar price goes up 10%, but the splenda price only goes up 3%, its only a 3% hit to core inflation. This gives the government a lot of wiggle room in massaging the inflation number. They only have to include the lowest increase in a similar product to the final number.

ETA: It was CPI and not core inflation.

 

[Rubiobot]

TIL about core inflation. The inflation rate for goods can be calculated using "similar items". Example If the sugar price goes up 10%, but the splenda price only goes up 3%, its only a 3% hit to core inflation. This gives the government a lot of wiggle room in massaging the inflation number. They only have to include the lowest increase in a similar product to the final number.

So this is the next conspiracy theory in advance?

 

[Max Power]

TIL about core inflation. The inflation rate for goods can be calculated using "similar items". Example If the sugar price goes up 10%, but the splenda price only goes up 3%, its only a 3% hit to core inflation. This gives the government a lot of wiggle room in massaging the inflation number. They only have to include the lowest increase in a similar product to the final number.

So this is the next conspiracy theory in advance?

It came from an accountant, so if you think numbers don't get massaged... sure it's a conspiracy.

Bottom line is that social security, VA disability, and other government payments are all adjusted yearly for inflation. It's in the government's best interest to rein in the number.

 

[FairWarning]

it will be interesting to see the affect of the railroad deal has on prices also. It is a heck of a raise for them..

Prices are going to go up for sure. Inflation is the gift that keeps on giving. That said, I'm thrilled a deal got done. It was going to get real ugly if the railways shut down for any extended period.

The deal had to get done.

 

[Sand]

It’s actually going down- the percentages were slightly higher in June and July.

June: 9.1% compared to June of 2021.
July: 8.5% compared to July of 2021.
August: 8.3% compared to August of 2021.

https://www.cnn.com/2022/09/13/economy/august-cpi-inflation/index.html

So it’s actually dropping, not getting worse. Still very bad though.

Core inflation is still going up. Its a different view of inflation and shows things getting worse or staying as bad as it has been, depending on timeframe. When looking at that graph let's remember the Biden administration declared inflation to be transitory last fall.

United States Core Inflation Rate

Core consumer prices in the United States increased 3.90 percent in December of 2023 over the same month in the previous year. This page provides - United States Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

 

[Max Power]

It’s actually going down- the percentages were slightly higher in June and July.

June: 9.1% compared to June of 2021.
July: 8.5% compared to July of 2021.
August: 8.3% compared to August of 2021.

https://www.cnn.com/2022/09/13/economy/august-cpi-inflation/index.html

So it’s actually dropping, not getting worse. Still very bad though.

Core inflation is still going up. Its a different view of inflation and shows things getting worse or staying as bad as it has been, depending on timeframe. When looking at that graph let's remember the Biden administration declared inflation to be transitory last fall.

United States Core Inflation Rate

Core consumer prices in the United States increased 3.90 percent in December of 2023 over the same month in the previous year. This page provides - United States Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

It's also concerning that the Fed has thrown a couple of their best pitches at inflation already. It went down 0.2 (using our SOR). They now realize that the real "pain" needs to begin. That pain is for the small businesses and consumers.

 

[The Z Machine]

That pain is for the small businesses and consumers.

That's basically everyone. worldwide

OK, maybe not people in North Korea.

 

[Max Power]

That pain is for the small businesses and consumers.

That's basically everyone. worldwide

OK, maybe not people in North Korea.

The lower 90% in America for sure.

 

[Snotbubbles]

It’s actually going down- the percentages were slightly higher in June and July.

June: 9.1% compared to June of 2021.
July: 8.5% compared to July of 2021.
August: 8.3% compared to August of 2021.

https://www.cnn.com/2022/09/13/economy/august-cpi-inflation/index.html

So it’s actually dropping, not getting worse. Still very bad though.

Core inflation is still going up. Its a different view of inflation and shows things getting worse or staying as bad as it has been, depending on timeframe. When looking at that graph let's remember the Biden administration declared inflation to be transitory last fall.

United States Core Inflation Rate

Core consumer prices in the United States increased 3.90 percent in December of 2023 over the same month in the previous year. This page provides - United States Core Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

It's also concerning that the Fed has thrown a couple of their best pitches at inflation already. It went down 0.2 (using our SOR). They now realize that the real "pain" needs to begin. That pain is for the small businesses and consumers.

Fed hasn't thrown their best pitch. They were trying for a soft landing with small bumps, doesn't look like that's going to happen. Now they need to throw multiple big bumps.

It doesn't help when Congress keeps passing big spending bills.

 

[Sand]

That pain is for the small businesses and consumers.

That's basically everyone. worldwide

OK, maybe not people in North Korea.

The lower 90% in America for sure.

Sure, we're sitting at 14 months or so of negative wage growth. This hurts Joe America as there is no escape - it's a big vise.

But no worry - lots of cake to be eaten at Joe's party to celebrate the Inflation Reduction Act.

 

[Max Power]

That pain is for the small businesses and consumers.

That's basically everyone. worldwide

OK, maybe not people in North Korea.

The lower 90% in America for sure.

Sure, we're sitting at 14 months or so of negative wage growth. This hurts Joe America as there is no escape - it's a big vise.

But no worry - lots of cake to be eaten at Joe's party to celebrate the Inflation Reduction Act.

It really is tone deaf. It kills me that every negative turn for this country is sold as "unexpected" or "unforeseen" when there are plenty of indicators that things are about to get much much worse. It's almost like if everyone buries their heads in the same sand we can say we never saw it coming and there was nothing we could do to stop it.

That said, I don't know how we right this ship. The first step is to admit there is a problem. I think it looks poorly on this admin and Dems going into midterms for them to hang their hat on this as an economy that works for working people.

 

[FairWarning]

That pain is for the small businesses and consumers.

That's basically everyone. worldwide

OK, maybe not people in North Korea.

The lower 90% in America for sure.

Sure, we're sitting at 14 months or so of negative wage growth. This hurts Joe America as there is no escape - it's a big vise.

But no worry - lots of cake to be eaten at Joe's party to celebrate the Inflation Reduction Act.

What other prices did he get lowered besides gas? Its in the link you posted.

 

[Max Power]

August CPI graphic

 

[Sand]

August CPI graphic

 

[Max Power]

Atlanta Fed just predicted that the GDP will have negative growth for the 3rd Quarter. That's 3 Quarters in a row that our GDP has shrunk.

 

[Genxersrule]

Atlanta Fed just predicted that the GDP will have negative growth for the 3rd Quarter. That's 3 Quarters in a row that our GDP has shrunk.

The Atlanta Fed isn't known for their accurate predictions. Not saying GDP won't be negative but I wouldn't wager anything on what comes out of that shop.

 

[Snotbubbles]

Hope the Fed doesn't screw this up.

We need 100 basis points today. 100 basis points in November. 100 basis points in December.

I know Congress is screwing this up. We need to cut spending, they don't seem capable.

 

[Max Power]

Hope the Fed doesn't screw this up.

We need 100 basis points today. 100 basis points in November. 100 basis points in December.

I know Congress is screwing this up. We need to cut spending, they don't seem capable.

75... prolong the less painful pain

 

[Snotbubbles]

Hope the Fed doesn't screw this up.

We need 100 basis points today. 100 basis points in November. 100 basis points in December.

I know Congress is screwing this up. We need to cut spending, they don't seem capable.

75... prolong the less painful pain

Yeah, looking like there will be a couple more hikes in 2022 and the Fed will not lower until 2024.

 

[Shula-holic]

Here comes the squeeze on renters as well

 

[Max Power]

Here comes the squeeze on renters as well

Its tough. We make home ownership less affordable and the demand for rentals goes up. I've heard its up over 25% since 2020 and has been increasing .7% a month over the last several months.

The disclaimer is that these are government's numbers on how they calculate rents (based off survey data) and not actual data. I can safely say my area is up 10-15% for apartment rentals over the last year.

 

[Max Power]

The price of food is still going up. I have to hear about it every time my wife comes back from the grocery store. This time it was most noticeable in the fruit and vegetables section.

On a side note, my daughter's school just announced they have to raise the price of school lunches by 50 cents a day. They already cut back on the portion size, but too many kids are buying lunch at school now that the school has constantly been running out of food. They need more money to buy more food and maybe deter a couple parents from the cheaper option.

 

[Shula-holic]

Here comes the squeeze on renters as well

Its tough. We make home ownership less affordable and the demand for rentals goes up. I've heard its up over 25% since 2020 and has been increasing .7% a month over the last several months.

The disclaimer is that these are government's numbers on how they calculate rents (based off survey data) and not actual data. I can safely say my area is up 10-15% for apartment rentals over the last year.

We have to pay for all the stimulus we have, and continue to pump into the economy. All that money, the debt forgiveness now, etc has to be paid for somewhere. The only way to cool off prices when doing that is to raise rates so much that demand is squashed. Home prices are going to suffer, in many ways people won't only pay for this with their tax dollars, but with their home values and 401Ks as well. The public perception will soon turn to why buy a house now, the prices are going to be falling weekly. Once that mindset takes hold, it's a self fulfilling prophecy for awhile.

 

[timschochet]

Hopefully the interest rate hike will help stem some of this.