Inflation hits new 40 year high

[SoCalN8tiv]

...and as predicted here on MKJ-OT, the housing market is crashing. Add a few more trillion to that $6.1 trillion decline in American household wealth. Good god, how much worse can biden screw up the country and lie about what he's done? The idiot blames everyone else but himself even after he said the buck stops with him. It's like he's living in an alternative universe. Crazy, just crazy how cold, callous, evil, and disconnected from reality he is. What are his handlers telling him, that everything is hunky dory? Families are still scrounging around for baby formula, for god's sake. Food in America is becoming non-affordable for a large part of the population and it will get worse when the Train Unions go on strike. Stupid Old Yeller staged a victory lap on 60 minutes but now he's about to eat his words. Will he take responsibility for that? Nope. It's all Trump's fault. Blame MAGA, blame Russia, blame Mothers of Liberty, blame climate change, blame parents at school board meetings, blame Giuliani, blame Bannon, blame Navarro, blame Tina Peters, blame Melania, blame Barron, blame Powell, blame the friendly press, blame border patrol, blame law enforcement, blame everyone but himself. It's ridiculous.

 

[Trojan JST]

 

[TheRealAirbns]

View attachment 239159

Obama had already supplanted ol' Jimmy, so it's Obama who Joe has managed to replace.

 

[SoCalN8tiv]

Prepare Prepare Prepare...

 

[SoCalN8tiv]

Household net worth decline since Old Yeller joe took office has been update from $6.1 trillion in losses to...wait for it...


$9 TRILLION!!

And, that number still doesn't include the bond market and housing market crashes! Old Yeller joe's failed policies will easily exceed $10 Trillion in lost household net worth. America is in deep trouble. You cannot vote democrat, out of self-preservation, you cannot.

Old Yeller joe the communist is the WORST EVER!

Biden voters chose poorly.

 

[xuscx]

maybe n8tive missed the memo but the Trump fed chief is trying to reduce home and stock market prices.

 

[Moon4Cimoli]

Joe Biden was elected to be a moderating influence on the extremist influences of both the right and left. That was his mandate. Moderation has been his focus for his entire 46 year career in politics.

Instead he has gone full Warren/ Sanders extremism and is creating even more political division. This is a disaster as a Presidential term, a full-on disaster. Joe is not in charge, he is bring marionetted by a leftist cabal behind the scenes.

 

[SoCalN8tiv]

View attachment 239159

He's still alive?! Well I'll be...

 

[SoCalN8tiv]

There is NO defending feckless Old Yeller joe biden. WORST EVER!

 

[xuscx]

You guys better hope the genius Putin can hang on to November elections. Not looking good now.

 

[DaFireMedic]

Grappling with Inflation: Bluecrew Finds 70% of U.S. Workers Seeking Additional Hours to Combat the Increased Cost of Living

Bluecrew, the first W-2 Workforce-as-a-Service platform providing workplaces with high-quality hourly workers, today released new data that shows near

www.businesswire.com

 

[GaryB]

It's all Trump's fault. Blame MAGA…

The issue that you have with your sky is falling scenario is history. In 1981, Reagan/Volcker raised the fund’s rate to 20% and cut the tax rate to 17.50%. Today, the fund’s rate is 3.25% and the tax rate is 17.50%.

When Carter appointed Volcker to run the Fed, he was responding to the price controls implemented by Nixon in the early 70s. On the other hand, you want to argue that Biden is responsible for the current business cycle, despite massive deficits dating back to 2008.

In 1981, the terminal rate for the Fed was 20 points. The Powell Fed has targeted a terminal rate of 4.5 points. In other words, the current business cycle will reverse after 2 more rate hikes, which should coincide with 2024.

By all metrics, your end of the world argument is flailing. We know how Reagan succeeded in subduing Inflation and beginning a new growth phrase. Right now, the Powell Fed is in lockstep with the Volcker’s Fed and the tax rate is primed for growth. As they say for history repeating, it may not repeat but it sure does rhyme…

 

[conquist]

The issue that you have with your sky is falling scenario is history. In 1981, Reagan/Volcker raised the fund’s rate to 20% and cut the tax rate to 17.50%. Today, the fund’s rate is 3.25% and the tax rate is 17.50%.

When Carter appointed Volcker to run the Fed, he was responding to the price controls implemented by Nixon in the early 70s. On the other hand, you want to argue that Biden is responsible for the current business cycle, despite massive deficits dating back to 2008.

In 1981, the terminal rate for the Fed was 20 points. The Powell Fed has targeted a terminal rate of 4.5 points. In other words, the current business cycle will reverse after 2 more rate hikes, which should coincide with 2024.

By all metrics, your end of the world argument is flailing. We know how Reagan succeeded in subduing Inflation and beginning a new growth phrase. Right now, the Powell Fed is in lockstep with the Volcker’s Fed and the tax rate is primed for growth. As they say for history repeating, it may not repeat but it sure does rhyme…

Trump attacking the Fed in 2019 and screaming for lower rates is bearing its fruits. along with Trump proving he is not a Republican but a crooked politician by printing trillions in stimulus money in early 2020. pretty clear for anyone that took just a few economics classes.

 

[TheRealAirbns]

Joe Biden was elected to be a moderating influence on the extremist influences of both the right and left. That was his mandate. Moderation has been his focus for his entire 46 year career in politics.

Instead he has gone full Warren/ Sanders extremism and is creating even more political division. This is a disaster as a Presidential term, a full-on disaster. Joe is not in charge, he is bring marionetted by a leftist cabal behind the scenes.

Moderating influence? He teamed up with Bernie Sanders and together they created a 100 page manifesto. Remember that?

Joe Biden didn't run as a moderate. He ran as a radical socialist. The moderate part was all in your head.

And yes, this presidency has been a disaster.

 

[SoCalN8tiv]

Trump attacking the Fed in 2019 and screaming for lower rates is bearing its fruits. along with Trump proving he is not a Republican but a crooked politician by printing trillions in stimulus money in early 2020. pretty clear for anyone that took just a few economics classes.

NOPE. When the economy is growing, employment numbers are great, and real wages are easily outpacing inflation, which was less than 2% btw, and President Trump's policies took $1 TRILLION OFF THE BALANCE SHEET, then you can criticize the Fed for stupidly raising interest rates. It's long overdue to end the Fed. They're useless. President Trump was correct and he based his decision on the economy opening back up from the lockdowns and going full bore with a rocketing V shaped recovery. Biden f-u-c-k-e-d EVERYTHING UP.

 

[Trojan JST]

OWN it, liberalturd democrats.

 

[Trojan JST]

 

[conquist]

NOPE. When the economy is growing, employment numbers are great, and real wages are easily outpacing inflation, which was less than 2% btw, and President Trump's policies took $1 TRILLION OFF THE BALANCE SHEET, then you can criticize the Fed for stupidly raising interest rates. It's long overdue to end the Fed. They're useless. President Trump was correct and he based his decision on the economy opening back up from the lockdowns and going full bore with a rocketing V shaped recovery. Biden f-u-c-k-e-d EVERYTHING UP.

with all due respect sir, it is clear you don't have a clue how money supply and quantitative easing affects the economy. I bid you good day.

 

[Gold Trojan]

Laughing at Biden supporters attacking Trump when they control the White House and both houses of Congress.

 

[Socrates]

Laughing at Biden supporters attacking Trump when they control the White House and both houses of Congress.

And the MSM, Social Media and Universities to co-sign on their BS and deny reality.
American Marxism.

 

[GaryB]

When the economy is growing, employment numbers are great, and real wages are easily outpacing inflation, which was less than 2% btw, and President Trump's policies took $1 TRILLION OFF THE BALANCE SHEET

The last time wages increased faster than inflation was 1977. Trump added $7.8 trillion to the debt, which doesn’t included the CBO’s $2 trillion that the tax Act will add over 10 years.

It's long overdue to end the Fed.

You picked a good day to call for the end of the Fed. Today, the Bank of England led an effort to intervene in an investor run on the Gilts. Seem that the world is selling Gilts, which increased interest rates to the highest level since 1957, at the same time that the government announced unfunded tax cuts.

In a normal world, investors such as pension plan, would leverage Gilt purchases; and then, they would use swaps and derivatives to hedge their risk. Unfortunately, there doesn’t exist any type of hedge that would protect the interest rate risk that occurred today, hence the central bank intervention.

In the US alone, there is $1 quadrillion in exposure in Bonds, derivatives, and OTC interest swaps. Absent a central bank to provide stability and liquidity, the OTC markets and derivatives would vanish. As recently as the last 24 hours the world got a taste of why central banks are critical. As Art Cashin stated on CNBC today, we were a hair away from another Lehman event.

As with all of your senseless posts, you are great at tearing things down; but you never offer an alternative.

 

[xuscx]

The fed made a lot of mistakes, but the 2% mortgages last summer were the topper, and people wonder where all that free money came from. How many did the $30k cash out refi. Thats what happens when you appoint a political science major to run things. Now when all signs show inflation has stopped growing, he is determined to run the country into the ground.

 

[SoCalN8tiv]

Does anyone listen to 101Commie? I don't.

 

[101Coast]

Does anyone listen to 101Commie? I don't.

Trump Trump Trump Trump…

Best President ever! He’s so good all he needed to do was think about declassification and it’s done.

But don’t take my word for it.

 

[101Coast]

This is a bad sign.

 

[SoCalN8tiv]

November 8 Americans have an opportunity to annihilate the Marxist democrats destroying America. This is a matter of survival for this reeling Constitutional Republic whose present leaders are ignoring the consent of the governed.

Stocks are crashing again today. Small reprieve yesterday but the 500 pt. plunge continues. 401Ks down as much as 50%. Early retirement? Fugetaboutit!

I don't think the banks or Wall Street can fix this. Smart money hasn't seen anything like this devastation of the economy before. Uncharted waters, as it were.

Larry Summers blames this inflationary condundrum and economic collapse on the ARA, biden's American Recovery Act. Until then he says inflation was basically controllable over the last 40 years. Boom.

 

[xuscx]

Should have been an easy win for the republicans, Self inflicted wounds

2022 Senate Election Forecast

Latest forecasts and polls for the 2022 Senate elections from ABC News’s FiveThirtyEight

projects.fivethirtyeight.com

'Giant Backfire': Trump's Demand for Special Master Is Looking Like a Mistake

WASHINGTON — Former President Donald Trump’s request that a judge intervene in the criminal investigation into his hoarding of government documents by appointing a special master increasingly looks like a significant blunder, legal experts say. “Maybe from Trump’s point of view, creating delay...

www.yahoo.com

 

[SoCalN8tiv]

It's the spending, stupid.

For advanced economies that exceeded 5% of inflation it takes around 10 years to get it to 2%.

 

[GaryB]

The fed made a lot of mistakes, but the 2% mortgages last summer were the topper, and people wonder where all that free money came from. How many did the $30k cash out refi. Thats what happens when you appoint a political science major to run things. Now when all signs show inflation has stopped growing, he is determined to run the country into the ground.

XX - Not sure what mistakes you are blaming on the Fed. You refer to 2% mortgages, which is a rate set by the markets. As recently as this week, the Fed is still engaged in the buying of mortgage back securities “MBS”, as part of their QE program, which demonstrates the inability of the Fed to bend the long end of the yield curve.

In case your wondering why the Fed is still engaged in QE in the MBS market, mortgage securities are contracts with forward settlements. The Fed agreed to buy “x” dollars of MBS from member banks and settlement for the contracted amount hasn’t occurred yet.

What signs show inflation has stopped growing? Starting from the beginning, each transaction has a buyer and seller. In the US, buyers have received 8% nominal growth in their income. Sellers have received 8% higher nominal earning increases. The nominal growth of income by the buyers hasn’t stopped. In fact, given labor participation rates, organized labor pushes, and immigration restrictions, you can argue that nominal wage growth will accelerate, and will continue as long as the Fed holds rates at neutral.

The Fed rate is 25 basis basis points below historic neutral levels. Arguing that the Fed is running the country into the ground, while in an expansionary mode, is a tough argument to win.

In theory, markets are perfect and will find equilibrium, but politicians have a way of mucking up the process, as we saw yesterday with the mindless tax cut in the UK. The PM’s actions forced central banks into QE to preserve liquidity, which is a reminder that all markets are not performing equally. And, if you are wondering which countries are out performing, just check the relative value of currencies for the industrialized world.

 

[xuscx]

XX - Not sure what mistakes you are blaming on the Fed. You refer to 2% mortgages, which is a rate set by the markets. As recently as this week, the Fed is still engaged in the buying of mortgage back securities “MBS”, as part of their QE program, which demonstrates the inability of the Fed to bend the long end of the yield curve.

In case your wondering why the Fed is still engaged in QE in the MBS market, mortgage securities are contracts with forward settlements. The Fed agreed to buy “x” dollars of MBS from member banks and settlement for the contracted amount hasn’t occurred yet.

What signs show inflation has stopped growing? Starting from the beginning, each transaction has a buyer and seller. In the US, buyers have received 8% nominal growth in their income. Sellers have received 8% higher nominal earning increases. The nominal growth of income by the buyers hasn’t stopped. In fact, given labor participation rates, organized labor pushes, and immigration restrictions, you can argue that nominal wage growth will accelerate, and will continue as long as the Fed holds rates at neutral.

The Fed rate is 25 basis basis points below historic neutral levels. Arguing that the Fed is running the country into the ground, while in an expansionary mode, is a tough argument to win.

In theory, markets are perfect and will find equilibrium, but politicians have a way of mucking up the process, as we saw yesterday with the mindless tax cut in the UK. The PM’s actions forced central banks into QE to preserve liquidity, which is a reminder that all markets are not performing equally. And, if you are wondering which countries are out performing, just check the relative value of currencies for the industrialized world.

Were they aware of what was going on, can't they see the 2% mortgage rates. SO what will happen, people paid way too much for a house that will drop in value, people maxed out their equity, if prices drop 20% we are in the walk away situation again. And with rates at 7% currently they for sure will drop 20%. Just a horrible decision.

What signs, dollar strong, ALL commodities are down significantly, housing dropped 5% in July oil is down, they last two months have shown about 0 month to month increase. Powell is just focused on the year over year number. No one will cut wages or lower prices already reset, we are not going back to 2020 prices. The question should be did we stop inflation not that have we need to go backwards to numbers we will never see again.

 

[Gold Trojan]

2nd straight Quarter of negative growth

https://www.cnn.com/2022/09/29/business/us-gdp-q2-final/index.html

and the average mortgage rate climbs to nearly 7%.

https://www.cnn.com/2022/09/29/homes/mortgage-rates-september-29/index.html

 

[GaryB]

Were they aware of what was going on, can't they see the 2% mortgage rates. SO what will happen, people paid way too much for a house that will drop in value, people maxed out their equity, if prices drop 20% we are in the walk away situation again. And with rates at 7% currently they for sure will drop 20%. Just a horrible decision.

XX - Despite negative real rates, unemployment reached 14% in 2020. The Fed’s dual mandate includes price stability and full employment. Are you suggesting that the Fed should prioritize bubbles in their decision process?

Why will people with 2% mortgages walk-away from their home if values decline 20%? Are you expecting rents to plummet? Please clarify

What signs, dollar strong, ALL commodities are down significantly, housing dropped 5% in July oil is down, they last two months have shown about 0 month to month increase.

Everything that you listed (excluding housing prices) are components of the PCE, which the Fed prioritizes. Currently, the PCE is 6.8%. Putting the number in prospective, in 2013, the PCE was minus 7.8% and inflation was running at 3%.

BTW housing prices rose 13.9% for July 2022, according to Fannie Mae.

 

[SoCalN8tiv]

2nd straight Quarter of negative growth

https://www.cnn.com/2022/09/29/business/us-gdp-q2-final/index.html

and the average mortgage rate climbs to nearly 7%.

https://www.cnn.com/2022/09/29/homes/mortgage-rates-september-29/index.html

Pretty much the lenders telling the lendee, the US, that it's a higher risk proposition to lend money to. The scary part is that these jumps in interest rates have occurred over a few months and even weeks, which has never happened before. Consumers with high credit card balances due to having to borrow to survive the failing biden economy will be crushed into poverty. Potential home buyers are backing out of deals instead of taking on a 7% mortgage interest rate. Housing market is collapsing. Where the bottom is no one is quite sure but the fall will be significant.

 

[xuscx]

XX - Despite negative real rates, unemployment reached 14% in 2020. The Fed’s dual mandate includes price stability and full employment. Are you suggesting that the Fed should prioritize bubbles in their decision process?

Why will people with 2% mortgages walk-away from their home if values decline 20%? Are you expecting rents to plummet? Please clarify


Everything that you listed (excluding housing prices) are components of the PCE, which the Fed prioritizes. Currently, the PCE is 6.8%. Putting the number in prospective, in 2013, the PCE was minus 7.8% and inflation was running at 3%.

BTW housing prices rose 13.9% for July 2022, according to Fannie Mae.

you are quoting year over year which is all what powell considers, we should be looking at month to month. I get a zillow feed and prices are dropping everyday on houses.

 

[Gold Trojan]

Pretty much the lenders telling the lendee, the US, that it's a higher risk proposition to lend money to. The scary part is that these jumps in interest rates have occurred over a few months and even weeks, which has never happened before. Consumers with high credit card balances due to having to borrow to survive the failing biden economy will be crushed into poverty. Potential home buyers are backing out of deals instead of taking on a 7% mortgage interest rate. Housing market is collapsing. Where the bottom is no one is quite sure but the fall will be significant.

The market crash will be significant in higher inflated markets (metro areas). Loses of 5% - 10% represent a large chunk when the average price was in the $500K - $1MM range.

And this is a monthly #.

Home prices fell for the first time in 3 years last month – and it was the biggest decline since 2011

The sharp and fast rise in mortgage rates this year caused an already pricey housing market to become even less affordable.

www.cnbc.com

 

[IETrojanFan]

Were they aware of what was going on, can't they see the 2% mortgage rates. SO what will happen, people paid way too much for a house that will drop in value, people maxed out their equity, if prices drop 20% we are in the walk away situation again. And with rates at 7% currently they for sure will drop 20%. Just a horrible decision.

What signs, dollar strong, ALL commodities are down significantly, housing dropped 5% in July oil is down, they last two months have shown about 0 month to month increase. Powell is just focused on the year over year number. No one will cut wages or lower prices already reset, we are not going back to 2020 prices. The question should be did we stop inflation not that have we need to go backwards to numbers we will never see again.

I'm no economist or anything close, but if oil is down, why did gas prices at the pump jump almost $1.00 up in the last month? It's back over $6/gal. here in SoCal... again.

 

[xuscx]

I'm no economist or anything close, but if oil is down, why did gas prices at the pump jump almost $1.00 up in the last month? It's back over $6/gal. here in SoCal... again.

Crack spread, in other words refinery profits. Oil is down 33% since the high

 

[101Coast]

America, how great art thou...

 

[SoCalN8tiv]

It's back over $6/gal. here in SoCal... again.

Went up $1.00 in two weeks for a gallon of Arco regular.

Here's one reason for the sudden jump. Wait til they do the annual oxygen additive for winter. Get ready for $7.00/gal.

'Unexpected and planned maintenance' | Short supply has California gas prices on the rise

Right now, the average price for a gallon of gas in California is $5.79. A month ago, it was $5.28, and a year ago, it was $4.39.

www.abc10.com

 

[Trojan JST]

Went up $1.00 in two weeks for a gallon of Arco regular.

Here's one reason for the sudden jump. Wait til they do the annual oxygen additive for winter. Get ready for $7.00/gal.

'Unexpected and planned maintenance' | Short supply has California gas prices on the rise

Right now, the average price for a gallon of gas in California is $5.79. A month ago, it was $5.28, and a year ago, it was $4.39.

www.abc10.com

Fjb