Quote: @badgervike said:
Prices rose by 5 percent in May compared with a year ago, the largest increase since the Great Recession, continuing a steady climb in inflation. Gas, Lumber, Automobiles...and soon to be Steel with Biden rolling back protections for steel companies. Better party like it's 1977 because it's only going to get worse. A 5% year on year jump in Consumer Price will have a profound affect on every American's pocketbook...
I have contracts tied to the PPI for annual service cost increases... I have a feeling some of my customers are going to be howling next year when they see their adjusted contract rates for 2022.
Interest rates continue to hold near historic minimums. With all the inflationary pressure...wait to see what happens as interest rates rise. Interest last year on US debt(covered by treasury bonds) was $378B at 2.0% rates. At 6% rates, those payments would triple or be roughly equal to ALL US annual discretionary spending. Welcome to Jimmy Carter Economics 102, For those of you too young and rooting for the sequel, the original version sucked.
https://media.nationalpriorities.org/uploads/discretionary_spending_pie_chart.png
Quote: @badgervike said:
Interest rates continue to hold near historic minimums. With all the inflationary pressure...wait to see what happens as interest rates rise. Interest last year on US debt(covered by treasury bonds) was $378B at 2.0% rates. At 6% rates, those payments would triple or be roughly equal to ALL US annual discretionary spending. Welcome to Jimmy Carter Economics 102, For those of you too young and rooting for the sequel, the original version sucked.
https://media.nationalpriorities.org/uploads/discretionary_spending_pie_chart.png
Didnt get to experience the first round but I was born during the farm crisis to dairy farmers. So Im sure that sucked bad.
I dont thing the crooks/fed will allow interest rates to explode circa 1970s but theyll need to raise rates to curb inflation.
Quote: @AGRforever said:
@ badgervike said:
Interest rates continue to hold near historic minimums. With all the inflationary pressure...wait to see what happens as interest rates rise. Interest last year on US debt(covered by treasury bonds) was $378B at 2.0% rates. At 6% rates, those payments would triple or be roughly equal to ALL US annual discretionary spending. Welcome to Jimmy Carter Economics 102, For those of you too young and rooting for the sequel, the original version sucked.
https://media.nationalpriorities.org/uploads/discretionary_spending_pie_chart.png
Didnt get to experience the first round but I was born during the farm crisis to dairy farmers. So Im sure that sucked bad.
I dont thing the crooks/fed will allow interest rates to explode circa 1970s but theyll need to raise rates to curb inflation.
well I would love to see interest rates explode as long as material costs are still high... If I am unwilling to spend whorehouse prices on my new shop and addition to my house... I might as well be earning 10% interest on my money while I wait around for materials to drop. of course high interest rates will likely slow a lot of shit down that leads to my annual commission so I am not to sure it wouldnt end up being a bit of a wash in the end.
The problem is that neither party has the desire to actually reduce that debt...and that is especially true of the Democrats these days...with a spending appetite that reminds me of the early bird special at the Old Country Buffet in Green Bay. Their first pass of an "infrastructure" bill was $4T. Our total US Gov't spend last year was less than that. Of course, infrastructure doesn't exactly describe a bill that has $400k in roads, bridges, rail, etc...and $3.6T in other expenditures. Now they're saying that it's a minimum of $2T or they won't do a deal. Again, that's more than half the TOTAL US spend last year on top of the previous stimulus. These are the same geniuses that are still paying enhanced benefits so that people don't actually need to apply for the record number of job openings. It will have the same dilutive effect the stimulus had from Obama and the Democrats. The financial crisis was already taken care of with Tarp I. You can thank Bush and the Democratic controlled congress for their fast and decisive action. There was NEVER a need for the stimulus...it was as Nancy Pelosi said...about spending money (we didn't have) on Democratic priorities. The result was the slowest economic recovery ever.
Quote: @badgervike said:
The problem is that neither party has the desire to actually reduce that debt...and that is especially true of the Democrats these days...with a spending appetite that reminds me of the early bird special at the Old Country Buffet in Green Bay. Their first pass of an "infrastructure" bill was $4T. Our total US Gov't spend last year was less than that. Of course, infrastructure doesn't exactly describe a bill that has $400k in roads, bridges, rail, etc...and $3.6T in other expenditures. Now they're saying that it's a minimum of $2T or they won't do a deal. Again, that's more than half the TOTAL US spend last year on top of the previous stimulus. These are the same geniuses that are still paying enhanced benefits so that people don't actually need to apply for the record number of job openings. It will have the same dilutive effect the stimulus had from Obama and the Democrats. The financial crisis was already taken care of with Tarp I. You can thank Bush and the Democratic controlled congress for their fast and decisive action. There was NEVER a need for the stimulus...it was as Nancy Pelosi said...about spending money (we didn't have) on Democratic priorities. The result was the slowest economic recovery ever.
And I wouldn't be half as mad if they were only paying them to actual US citizens. 50% was perhaps stolen in fraud
Quote: @JimmyinSD said:
@ AGRforever said:
@ badgervike said:
Interest rates continue to hold near historic minimums. With all the inflationary pressure...wait to see what happens as interest rates rise. Interest last year on US debt(covered by treasury bonds) was $378B at 2.0% rates. At 6% rates, those payments would triple or be roughly equal to ALL US annual discretionary spending. Welcome to Jimmy Carter Economics 102, For those of you too young and rooting for the sequel, the original version sucked.
https://media.nationalpriorities.org/uploads/discretionary_spending_pie_chart.png
Didnt get to experience the first round but I was born during the farm crisis to dairy farmers. So Im sure that sucked bad.
I dont thing the crooks/fed will allow interest rates to explode circa 1970s but theyll need to raise rates to curb inflation.
well I would love to see interest rates explode as long as material costs are still high... If I am unwilling to spend whorehouse prices on my new shop and addition to my house... I might as well be earning 10% interest on my money while I wait around for materials to drop. of course high interest rates will likely slow a lot of shit down that leads to my annual commission so I am not to sure it wouldnt end up being a bit of a wash in the end.
They can't. Their hands are tied. If you raise rates it will force treasuries interest rates up. The owners of the debt clock will need to add another zero or two.
Quote: @AGRforever said:
@ JimmyinSD said:
@ AGRforever said:
@ badgervike said:
Interest rates continue to hold near historic minimums. With all the inflationary pressure...wait to see what happens as interest rates rise. Interest last year on US debt(covered by treasury bonds) was $378B at 2.0% rates. At 6% rates, those payments would triple or be roughly equal to ALL US annual discretionary spending. Welcome to Jimmy Carter Economics 102, For those of you too young and rooting for the sequel, the original version sucked.
https://media.nationalpriorities.org/uploads/discretionary_spending_pie_chart.png
Didnt get to experience the first round but I was born during the farm crisis to dairy farmers. So Im sure that sucked bad.
I dont thing the crooks/fed will allow interest rates to explode circa 1970s but theyll need to raise rates to curb inflation.
well I would love to see interest rates explode as long as material costs are still high... If I am unwilling to spend whorehouse prices on my new shop and addition to my house... I might as well be earning 10% interest on my money while I wait around for materials to drop. of course high interest rates will likely slow a lot of shit down that leads to my annual commission so I am not to sure it wouldnt end up being a bit of a wash in the end.
They can't. Their hands are tied. If you raise rates it will force treasuries interest rates up. The owners of the debt clock will need to add another zero or two.
cant let inflation run like it is though either. somebody is going to have to eat the dick on this mess before it really does become something like the 70s.
All this gloom and doom after 1 month, gives true perspective of your business acumen.
Quote: @BigAl99 said:
All this gloom and doom after 1 month, gives true perspective of your business acumen.
1 month, yeah thats all its been. like i've said, I was calling for rate hikes before covid hit. the longer they put it off the more it will hurt when they do, especially if they keep spending money they dont have.
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