Inflation is on the horizon

[Jeepster48439]

Requires constant monitoring.

The manufacturers have already aided in that endeavor. Do you really know what that black box in your car is keeping track of?

 

[SnoopLoggyDog]

Here I am within two years of retirement and it is all going down the toilet. At least our house is paid off and other than one car payment, we have no debt. Having lived through the 70's, it is frustrating that our future buying power will all be eaten up by inflation.

 

[rooster]

Alright I know a thing or two about this situation but honestly it’s so messed up that it’s hard to grasp. Buckle up, this is a long post with difficult concepts.

prices of goods are going up, this is the textbook definition of inflation. However Jpow and .gov continue to claim inflation remains low at around 1.4%. CPI measurement includes a lot of different goods and services and most importantly wages. This is the most important component because even though the price of goods has been rising wages have largely become stagnant.

bring in the fight for 15. I personally believe the reason that Biden and company killed this recently was because this sudden increase in wages would prevent .gov from cooking the inflation numbers. It’s too much change too fast to do historical “revisions” that no one pays attention to in order or change the makeup of the goods to get this weeks CPI to where they really want it to be (under 2%).

I also personally believe that this denial that inflation is happening is more dangerous than the inflation itself. Eventually if current trajectory remains unchanged the inflation will grow beyond gov and fed control. When this happens the loss of confidence in the fed and gov will snowball into a hyperinflationary period.

“the dying of money” is a really good book written as almost a post Mortem on out of control inflation situations.

link to CPI

CPI Home : U.S. Bureau of Labor Statistics

www.bls.gov

PDF of “the dying of money”

https://recision.files.wordpress.com/2010/12/jens-parsson-dying-of-money-24.pdf

Unpopular opinion here is that the best course of action for an individual in this type of inflationary environment is to take on debt. You we enter hyper inflation your debt will too become worthless while the property you financed with said debt will raise in value.

 

[AtTheMurph]

Just to put it out there, if you're that worried that the US economy is going to implode, invest in other countries.

The current administration is going to do everything it can to murder our economy as fast as possible and they're just getting started. Meanwhile stock in international freight shipping companies is on the floor because there's nothing to ship (supply chain issues). This is a recipe to make money in someone else's economy. Try as he might, I'm going to resist Biden running me into the poor house as hard as I can. If I'm investing in foreign companies to do it, so be it.

I like metals as a bit of a fail safe, but buying anything at a 5 year high is a bigger risk than I really care to take. Buy high, sell higher never seems to work for me.

They will destroy the dollar. As the reserve currency, when the $$$ goes poof, there will be nowhere to hide.

 

[AtTheMurph]

Here I am within two years of retirement and it is all going down the toilet. At least our house is paid off and other than one car payment, we have no debt. Having lived through the 70's, it is frustrating that our future buying power will all be eaten up by inflation.

It would be nice if your buying power weren't locked up in home equity.

Then you could at least try to hedge against the inflation and repay your debt with devalued dollars.

 

[Jaybird1980]

Buttigieg suggests 'vehicle miles tax' to pay for infrastructure projects

Biden Transportation Secretary Pete Buttigieg is weighing a vehicle miles tax (VMT) to fund the president's estimated $3 trillion infrastructure plan.

www.google.com

Here’s one more thing to help us with the coming/current inflation. Now we can be taxed for the miles we drive to work.

So that's his plan to pay for this.

Buttigieg pitches 'once in a generation' infrastructure fix

WASHINGTON (AP) — Transportation Secretary Pete Buttigieg called for a once in a generation infrastructure investment Thursday that would address a massive backlog in needed improvements for the nation's roads, bridges and transit systems, while also tackling climate change. Buttigieg avoided...

apnews.com

 

[Ark]

So that's his plan to pay for this.

Buttigieg pitches 'once in a generation' infrastructure fix

WASHINGTON (AP) — Transportation Secretary Pete Buttigieg called for a once in a generation infrastructure investment Thursday that would address a massive backlog in needed improvements for the nation's roads, bridges and transit systems, while also tackling climate change. Buttigieg avoided...

apnews.com

$2 trillion in free gibs overwhelmingly spent on consumer trash from Amazon.

$3 trillion in free "infrastructure" gibs.

Probably another $3 trillion in socialized healthcare gibs coming down the pipe.

If money isn't real, why can't my employer pay me a billion dollars a week so I can live like a king?

 

[spencer rifle]

If money isn't real, why can't my employer pay me a billion dollars a week so I can live like a king?

He could, but it would lose significant value between the bank and the store.

 

[maxwelhse]

They will destroy the dollar. As the reserve currency, when the $$$ goes poof, there will be nowhere to hide.

China. They were on schedule to overtake our economy in 5 years before this all happened and those wheels were put in motion back in the '90s. That's where I'm doing a fair bit of my "hiding".

I'm hoping to time all of this such that any large contraction here in the US hits when I'm ready to buy some property. The truth is that I'd like to have not a lot more than a safety net in the bank, and the rest in property, while hopefully also growing a couple of other income streams that have international appeal. Property values with likely chase after inflation better than cash in the bank. Depends how far interest rates ratchet up.

Anyhow... We shall see. My timing on all of this is about 2 years from now. I don't think the long term effects of these policies will start hitting for 2-5 years and I suspect what we're seeing right now is temporary, but absolutely a sign of things to come.

 

[Jeepster48439]

Stopped in at Premier Arms this afternoon. Converted some more of that worthless paper to hard, tangible assets. Too bad they have conversion limits.

 

[actaeon277]

Here I am within two years of retirement and it is all going down the toilet. At least our house is paid off and other than one car payment, we have no debt. Having lived through the 70's, it is frustrating that our future buying power will all be eaten up by inflation.

Inflation hits the retired VERY hard.

 

[MRockwell]

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

Interesting read on what Buffet has to say about inflation.

 

[actaeon277]

Let's "pump" a bunch of money into the economy, tax them, and pay people not to work.
And then blame everyone else.

 

[Tombs]

Let's "pump" a bunch of money into the economy, tax them, and pay people not to work.
And then blame everyone else.

It's a consequence of spending and printing without most of that spending going back into the economy.

If we cut social security, medicare, and military spending for a few years we might possibly get back to a balanced budget, but it would quite literally require something that drastic to have any chance.

 

[jsx1043]

 

[NHT3]

With the advent of $3 a gallon gas and the presses at the Mint running like GAU-17s I sense the horizon is fast approaching.

 

[mbills2223]

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.

This is exactly what happened with pharmaceuticals.

 

[actaeon277]

This is exactly what happened with pharmaceuticals.

It's happening with everything.
It's why people were worried about the "cure" being worse than the problem.

Steel has gone up, and orders are thru the roof.
Just got a list of parts approved for purchase. First time we've seen the entire list approved, and no fuss.
Course, some of the parts will be weeks or months on backorder.
And of course, I give the "stink eye" to all those that were praising "on time parts" which meant many of the items we need are now being begged for.

 

[actaeon277]

There are costs to shutting down the economy.

 

[indykid]

That $3.00 a gallon gas is not too far off. Saw a station today advertising it at $2.98! That’s regular.

Was happy to get the check from the government so that I could turn it directly over to the county for part of my annual property rent… I mean property tax. Home ownership? Not in Indiana.