Inflation is on the horizon

[1nderbeard]

Heard on a radio show inflation of 25% on basically everything is 12 months away. Better predict the next 13-36 months will be massive amounts of lost dollar value. Maybe longer if the D win and continue spending and printing money.

Now is the time to invest in long term goods that will hedge against inflation.

 

[Mounty09]

It has already begun.

Steel prices are up 50% and look at the lumber prices. They say that covid caused this to happen but the prices are here to stay.

 

[WebSnyper]

Supply chains are getting hammered for multiple reasons, along with free $$ flowing from stimulus and low interest rates, etc. That's pretty much a recipe for inflation.

 

[DadSmith]

Already in effect. Everything has went up already. From lumber to groceries to fuel etc.

 

[Ark]

Got sticker shock at the grocery store just since last week. Spend those stimmies on hard assets now because that money is going to be butt-wipe by this time next year.

 

[Super Bee]

Already in effect. Everything has went up already. From lumber to groceries to fuel etc.

Agreed.

Its not coming, its here.

 

[chocktaw2]

Agreed.

Its not coming, its here.

Yep, been here for a full year. They used the supply chain disruption/hoarding to raise prices on everything.

 

[femurphy77]

What are you saying? You can't pump trillions of dollars of funny money into the economy without it having negative impacts on the economy?

 

[actaeon277]

Yep, been here for a full year. They used the supply chain disruption/hoarding to raise prices on everything.

I don't know that they "used" anything.
The supply was gut punched.
There are all kinds of problems getting some parts. Many of those parts, are used to make other parts.
So, if the price on those parts goes up, then the price of the product goes up.
Then, that product goes into another product, so it's price goes up.

Eventually, everything will catch up.
But now throw in the rampant printing of dollar bills, and flooding the market, now you have a recipe for massive inflation.

 

[DoggyDaddy]

Got sticker shock at the grocery store just since last week. Spend those stimmies on hard assets now because that money is going to be butt-wipe by this time next year.

Yep, thanks to INGO I've recently gotten into buying silver. Even DoggyMama just had me buy her some.

 

[WebSnyper]

I don't know that they "used" anything.
The supply was gut punched.
There are all kinds of problems getting some parts. Many of those parts, are used to make other parts.
So, if the price on those parts goes up, then the price of the product goes up.
Then, that product goes into another product, so it's price goes up.

Eventually, everything will catch up.
But now throw in the rampant printing of dollar bills, and flooding the market, now you have a recipe for massive inflation.

And even more transportation issues and costs with recent Suez canal blockage, though hopefully that gets figured out soon.

 

[actaeon277]

I don't know that they "used" anything.
The supply was gut punched.
There are all kinds of problems getting some parts. Many of those parts, are used to make other parts.
So, if the price on those parts goes up, then the price of the product goes up.
Then, that product goes into another product, so it's price goes up.

Eventually, everything will catch up.
But now throw in the rampant printing of dollar bills, and flooding the market, now you have a recipe for massive inflation.

Then, you know they're going to push for the $15/hour (or more) minimum wage increase.
Well, the guy that makes $15/hour already, will push for a raise.
The guy above that will push for a raise, and so on, and so on.
So, with everyone getting a "raise", the cost of the product will go up.

So, inflation will...

 

[chocktaw2]

I don't know that they "used" anything.
The supply was gut punched.
There are all kinds of problems getting some parts. Many of those parts, are used to make other parts.
So, if the price on those parts goes up, then the price of the product goes up.
Then, that product goes into another product, so it's price goes up.

Eventually, everything will catch up.
But now throw in the rampant printing of dollar bills, and flooding the market, now you have a recipe for massive inflation.

I'm open to that reasoning.

 

[Ark]

Yep, thanks to INGO I've recently gotten into buying silver. Even DoggyMama just had me buy her some.

The thing that makes me very leery about silver right now is the way the hedge funds started clearly pushing it hard to counter and distract the GME people.

 

[Jeepster48439]

Stopped at Cabela's and converted some cash to hard assets.

 

[DoggyDaddy]

The thing that makes me very leery about silver right now is the way the hedge funds started clearly pushing it hard to counter and distract the GME people.

I'm not going crazy with it, but historically it's been a sound investment. I look at it kind of like blue chip stocks. There will be peaks and valleys, but over the long term it tends to go up. It's definitely not a "get rich quick" kind of investment vehicle.

 

[DoggyDaddy]

I do have a good investment portfolio in other precious metals... lead, brass and copper.

 

[WebSnyper]

Then, you know they're going to push for the $15/hour (or more) minimum wage increase.
Well, the guy that makes $15/hour already, will push for a raise.
The guy above that will push for a raise, and so on, and so on.
So, with everyone getting a "raise", the cost of the product will go up.

So, inflation will...

Yep, higher min wage will drive everything up as well, especially the already "lower tier/priced goods".

Hard to sell cheap fast food for example when the min wage is $15 across the country. Some places that already have higher expenses, etc that is probably what they are at now but in other states with fairly low cost of living comparatively and that will be a killer. And when that goes up and the guy working in the fast food place either can't buy the product he's making or his job gets eliminated due to needing to automate it to maintain a lower price, neither he nor anyone else benefits from the higher min wage.

When someone mentions raising the min wage to $15 I ask why not $50 or $500 to which people often say that's ridiculous and I agree with them since it's all an arbitrary figure, and the result is the same.

 

[Ark]

Related, what average people are doing with their stimulus money that was supposed to lift them out of poverty: Buying PS5s, vibrators, clothes, and other useless consumer garbage:

The government just spent $1.9 trillion dollars so people could buy PlayStations and erotic toys, according to Amazon shopping trends

E-commerce firm Pattern just gave us an insight into what people have been buying with their stimulus money.

notthebee.com

 

[Ark]

I'm not going crazy with it, but historically it's been a sound investment. I look at it kind of like blue chip stocks. There will be peaks and valleys, but over the long term it tends to go up. It's definitely not a "get rich quick" kind of investment vehicle.

Yeah but even blue chip stocks shouldn't be purchased after a mad rush, what, doubles the price from a year ago? A price that was stable for the better part of a decade?