• Security incident: ISF was recently accessed by intruders. Please change your password, and change it anywhere else you used it. Read more

Inflation

The Atheist said:
I came here specifically to drop that tidbit if nobody else had.

My expectation is the inflation will be hidden by shrinkflation wherever possible, and actual price increases blamed on Biden.

The proles may need an extra Two Minute Hate to get over it.
Click to expand...
Sounds about right.

Also expect that if and when the rate of inflation starts to drop it'll be pitched as a reduction in prices as opposed to a drop in the rate at which prices are rising.
 
It's Baaaaaaacccckkk!

Inflation surged to 3.8% in April, its highest level in nearly three years, according to data released Tuesday, as the war in Iran causes a ripple effect across the economy and energy prices surge.
Click to expand...
 
Brainster said:
It's Baaaaaaacccckkk!
Click to expand...
This is only temporary. Iran is desperate for a deal so the Strait of Hormuz will be open by next Tuesday. Then gas prices will instantly go down by 50%, just like Trump promised in his 2024 election campaign.

Interior secretary Doug Burgam says the US right now is the most energy secure, most energy affordable nation in the world, and President Trump's playing a geopolitical game which includes Venezuela stopping China from buying cheap Venezuelan Iranian oil. The work that he's doing to build a coalition around the world, whether it's opening the Strait or on critical minerals. Heading into the summit this week, President Trump's in the strongest position of any US leader ever going into a discussion with China. You take a look at the economic numbers and and the US economy is strong China's economy is faltering. It's just a great spot and President Trump's leadership is putting us in a great place to come out on top!

So please stop whining about what you have to pay for stuff right now. Can't you see that President Trump's Making America Great Again in all the ways that matter?
 
Inflation is obviously surging everywhere, with various means of dealing with it.

Aussie has taken a bold move in their budget, giving money to low-income earners, while locking in rate increases and NZ's government has it's fingers in its ears singing lalalala as loud as it can.
 
Hmm, the bond market worldwide is ringing bells right now, with multi-year or -decade highs around the world.

www.abc.net.au

Once-in-a-generation Australian bond sell-off is 'bad news' for everyone

The yield of the Australian government's 10-year bond has climbed to a 15-year high, in a worrying sign for Australian borrowers.
www.abc.net.au www.abc.net.au

That is guaranteed to do two things:

Raise prices in general as working capital costs will be higher.
Increase mortgage and all lending rates, also increasing costs, but in the longer term, locking in inflationary pressure for at least a year.

Given the very high debt levels everywhere, this is going to start hurting very quickly. In the GFC, rates were near zero to provide impetus for growth, which isn't an option now, as nobody is going to by US T-bills at 1% when inflation is 4-5%.

Very interesting period ahead. I'm going to take a small short position on the Dow - expected returns over 10% look very unlikely about now.
 
The Atheist said:
Very interesting period ahead. I'm going to take a small short position on the Dow - expected returns over 10% look very unlikely about now.
Click to expand...

I threw a grand at VIX at $15.20 and it's hovering around $17.80 right now, so 15% for a week looks ok.

I think I'll double up.
 
You must log in or register to reply here.

Share this page

ISF - Join now!

Every member here is approved by hand. No bots, no spam, just people who care about evidence and honest debate.

Membership is free!

Create your free account

Back
Top Bottom