Some good economic data just dropped. SELL!!!

All of the covid stimulus payments (the direct ones) to people, have already been more than offset by higher inflation. I got $2,400. Just this year, I will spend $2,400 MORE in just gasoline, much less food and everything else. I have raised my hourly rate 8% since covid hit, and I'm doing good not to raise it more, only because I have more work than I've had in 22 years.

Furthermore, inflation is worldwide now. Every country (most) have major problems with inflation. Before we heard about inflation you know what we heard about? "Labor shortages". Yep. Everyone seemed to have labor shortages, unexplained. Not that many people died from the pandemic to cause the level of labor shortages. Yet it was not long afterwards that we heard about inflation. It's a supply-driven problem. At the heart of it is a universal decline in worldwide labor, coupled with many countries who have profited for decades on globalism and "free trade" now having not only domestic labor shortages, but shortages on the imports on which they rely. That causes a supply crisis, which causes inflation. Until our collective demand decreases to match a reduced supply of labor (goods and services) we will have inflation. The pandemic pulled the rug out from underneath this system of globalism we've created and thrived on.

This is why the Fed will boost rates even more. Until we stop buying stuff, the TV's, the gadgets, the over-priced coffee, bottled water, etc. until those excesses of free trade and global allocation and distribution of cheap labor, until we can offset the loss of that with reduced demand, inflation will continue.

Overall we made the mistake of "going back to normal", under the assumption that everything would be "back to normal". Right now we have a new normal, which is a $400 metal clip for a headrest on a Honda Odyssey.

Tiggity®

Oculus Spirit [97677]

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Supply and demand. It's really very simple.

Dec 2, 2022, 10:43 AM [ in reply to Re: That's 100% not correct. ]

We Americans are (mostly) completely ignorant of our place in the world. We are taught to think we live in a bubble. We don't rely on other countries. We're strong, the world's largest economy, and stand firmly on our own two feet. We are literally trained to think that. We are the world's bank. We use our military dominance to back up the dollar as the world's reserve currency. We then leverage that dollar, through "free trade" and globalism, in a global economy, where we can import goods produced in other countries with cheaper labor, making the price of goods in the US cheaper. We never raise minimum wage, and let in millions of illegals with a wink and a nod (FROM BOTH PARTIES, FOR DECADES) because they help reduce DOMESTIC labor costs. They allow us to have housing booms, and construction booms, and many other things. ALL OF THIS is with a purpose, to DEFLATE the value of labor, of goods, and to increase the buying power and standard of living of Americans, to levels we alone could never sustain.

And any time there's an economic problem, we can just drop lending rates, make debt cheaper, and boom, problem fixed. Not only does this allow us to buy bigger houses, fancier cars, and better food, it also cheapens the price of servicing debt to a level where debt can be used as economic fuel. It can also allow politicians to buy votes. Republicans with lavish military spending, democrats with entitlements. And with a 2% lending rate, or zero, or even 3% (we enjoyed those rates due to all of the above), due to those low lending rates, we can spend on companies that are not profitable, and politicians can spend on their constituents.

The pandemic reset the planet's labor pool. There was a large net loss in labor. And it's not just from lockdowns, but regardless of the cause, there's a massive labor decline worldwide. CHINA has labor shortages, and they have a billion people. Energy always leads inflation, always has, always will. It's the #1 necessity before all others. Food would be next and it's skyrocketing as well. Food and energy are also the planet's most labor intensive commodities. Opec is having trouble meeting their own oil production quotas. They lowered their quotas much to our angst, and they STILL have many countries who can not make their quotas, and this was before Russia invaded Ukraine. Inflation was already topping 7.5% in the US BEFORE Putin invaded Ukraine.

No, Biden's lying when he says the inflation is caused by Russia. No, Janet Yellen is lying when she says we've been splurging. Truth is we've been splurging for decades, and seem to think we can keep on splurging along. Take a peek at the inflation in G20 countries, or even worldwide. There has been a reset, and the countries who opened up first, are seeing declines in inflation, as demand adjusts. Countries late to open up, are still seeing rising inflation. China will see it next year. It's because people think things will go back to normal just because restrictions are lifted. They won't, and that learning curve by the consumer, in countries who import cheaper goods, that learning curve is happening now in many countries.

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Some good economic data just dropped. SELL!!!

I'm still waitin on more mass layoffs come

Re: I'm still waitin on more mass layoffs come

The mkt usually doesnt stay down more than 1.5 yrs

Re: Some good economic data just dropped. SELL!!!

Re: Some good economic data just dropped. SELL!!!

Re: Some good economic data just dropped. SELL!!!

Re: Some good economic data just dropped. SELL!!!

That's 100% not correct.

Re: That's 100% not correct.

Re: That's 100% not correct.

Add in Alaska and offshore and those numbers change...***

Re: Add in Alaska and offshore and those numbers change...***

Wrong.***

Re: Wrong.***

Re: Wrong.***

Re: That's 100% not correct.

I thought it was Putin's price hike?

Re: I thought it was Putin's price hike?

Re: That's 100% not correct.

Supply and demand. It's really very simple.

it's a globally-traded commodity...

Re: That's 100% not correct.

I think I will probably get at least 5 emails today

Re: I think I will probably get at least 5 emails today

Re: I think I will probably get at least 5 emails today

what free covid money?***

Re: what free covid money?***

Have you considered it's a scam?? There a lot of companies..

Re: Have you considered it's a scam?? There a lot of companies..

Stock market will be good the next 6 months.

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