9.1 % Inflation record high ===> FJB and Congress, and the FED... and

DIBBS

Old Mountain Man-Tired occasionally Grumpy SOB
Supporter
Full Member
Minuteman
Supporter+
  • Aug 21, 2008
    2,699
    2,345
    WARSHington State
    WASHINGTON (AP) — Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow.

    WATCH: Inflation and high housing costs spur more baby boomers to find roommates

    Consumer prices soared 9.1 percent compared with a year earlier, the government said Wednesday, the biggest yearly increase since 1981, and up from an 8.6 percent jump in May. On a monthly basis, prices rose 1.3 percent from May to June, another substantial increase, after prices had jumped 1 percent from April to May.

    The ongoing price increases underscore the brutal impact that inflation has inflicted on many families, with the costs of necessities, in particular, rising much faster than average incomes. Lower-income and Black and Hispanic Americans have been hit especially hard, because a disproportionate share of their income goes toward such essentials as housing, transportation and food.

    Some economists have held out hope that inflation might be reaching or nearing a short-term peak. Gas prices, for example, have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.63 nationwide Wednesday — still far higher than a year ago but a drop that could help slow inflation for July and possibly August.

    In addition, shipping costs and commodity prices have begun to fall. Pay increases have slowed. And surveys show that Americans’ expectations for inflation over the long run have eased — a trend that often points to more moderate price increases over time.

    Still, the breadth of the price gains shows how rising costs have seeped into nearly every corner of the economy. Grocery prices have jumped 12.2 percent compared with a year ago, the steepest such climb since 1979. Rents have risen 5.8 percent, the most since 1986. New car prices have increased 11.4 percent from a year earlier. And airline fares, one of the few items to post a price decline in June, are nevertheless up 34 percent from a year earlier.

    From May to June, the cost of dental services surged 1.9 percent, the biggest one-month increase since record-keeping began in 1995.

    The relentless spike in inflation has diminished consumers’ confidence in the economy, sent President Joe Biden’s approval ratings tumbling and posed a major political threat to Democrats in the November congressional elections. Forty percent of adults said in a June AP-NORC poll that they thought tackling inflation should be a top government priority this year, up from just 14 percent who said so in December.

    In the immediate aftermath of the 2020 pandemic recession, as Americans focused their spending on items for the home, like furniture, appliances and exercise equipment, supply chains became overwhelmed and prices for physical goods soared. But as consumer spending has gradually shifted away from goods and toward services like vacation travel, restaurants meals, movies, concerts and sporting events, some of the highest price increases have occurred in services.

    Housing costs have also risen sharply. A shortage of houses for sale has kept prices high just as mortgage rates have also soared.

    With many people priced out of the market for houses and looking instead to rent, demand for apartments has sent rental rates beyond affordable levels. The average cost of new leases has jumped 14 percent in the past year, according to real estate brokerage Redfin, to an average of $2,016 a month.

    WATCH: What a mix of high inflation and low unemployment means for the U.S. economy

    Rents as measured by the government’s inflation index have risen more slowly because they include all rents, including existing leases. But economists expect the rising expense of new leases to send the government’s inflation measure higher in coming months.

    The persistence of high inflation has unnerved Chair Jerome Powell and other Fed officials, who are engaged in the fastest series of rate hikes since the late 1980s to try to slow the price spikes. The central bank is expected to raise its key short-term rate later this month by a hefty three-quarters of a point, as it did last month, with potentially more large rate hikes to follow.

    Powell has stressed that the central bank wants to see “compelling evidence” that inflation is slowing before it would dial back its rate hikes. Such evidence would need to be a “series of declining monthly inflation readings,” Powell said at a news conference last month.

    Many economists worry that the Fed’s drive to quell inflation will cause it to tighten credit too aggressively even while the economy, by some measures, is slowing. Much higher borrowing costs could trigger a recession, potentially by next year.

    Consumers have started to pull back on spending, home sales are falling as mortgage rates rise and factory output slipped in May. Yet steadily robust job growth points to an economy that is still expanding, with little sign of an imminent recession.

    Though inflation may slow later this year, it’s not clear by how much. Oil prices fell Tuesday to about $96 a barrel. And other commodities, including metals such as copper, have also become less expensive, mostly because of recession fears in both the United States and Europe.

    With fewer ships stuck at the Port of Los Angeles and Long Beach, America’s largest, shipping costs for international freight have fallen. Wholesale gas prices have fallen to about $3.40 a gallon, which suggests that retail prices could drop to as low as $4.20 by August, according to Omair Sharif, founder of Inflation Insights.

    And wholesale used car prices are also falling, which point to declining used car prices in the coming months.

    Inflation has spiked overseas as well. It reached 9.1 percent in the United Kingdom in May, the highest level in four decades, driven mostly by higher gas and food prices. Annual inflation in the eurozone’s 19 countries hit 8.6 percent in June, surging past the 8.1 percent recorded in May. Inflation is now at its highest level since recordkeeping for the euro began in 1997.



     
    • Like
    Reactions: Hobo Hilton

    wade2big

    Two Star General
    Full Member
    Minuteman
    Supporter+
    Sep 16, 2017
    6,993
    11,301
    TEXAS
    Who could ever have guessed that using a US/China manufactured virus as a catalyst for a globalist’s plan to unleash police on the public to force businesses closed, using phony tests to fake a pandemic, bribing people not to work by printing money and handing it out to everyone and anybody, and stealing elections would cause supply chain issues and inflation. 🤷‍♂️
     

    Hobo Hilton

    Private
    Full Member
    Minuteman
    Jun 4, 2011
    6,856
    6,084
    71
    Pacific Northwest
    For the first time in history, with hyper inflation and rising interest rates, the party in power picked up seats in the midterms. Killing babies must be a really good thing to get that many people to vote for it. Once starvation sets in, I'm sure that the vote will be 100% (D).
     
    • Like
    Reactions: woogie_man

    Hobo Hilton

    Private
    Full Member
    Minuteman
    Jun 4, 2011
    6,856
    6,084
    71
    Pacific Northwest
    Why not print a couple trillion and send it to folks to offset inflation? (Probably a conversation happening in the congress right now)
    4 months have passed since your comment.... I think that is what is happening.
    Check the national debt and listen to Yellen say "Increase the debt limit"....
    The train wreck is picking up speed now that the midterms have passed.
     

    DocRDS

    No One
    Full Member
    Minuteman
    Feb 21, 2012
    2,081
    3,544
    Here
    Leave the FED out of this--I know its existance runs contrary to a classic liberal economy BUT they are the only adults in the room. How do you combat inflation? STOP PRINTING MONEY (that's on Congress). Otherwise, Interest rates MUST go up. Its how we got out of staglflation in the 80s for those too young to remember--High Interest Rates kill inflation (by killing borrowing). Its painful, but it works.
     

    mosin46

    Sergeant
    Full Member
    Minuteman
    Supporter+
    Aug 11, 2010
    2,504
    481
    76
    florida 32621
    9.1% -bullshit! it's at least 60%. food and fuel not included in the lies. i remember carter years very well. gov said,i think,7% back then. really 30-40%. then and now. many food items are > 50-80%. we all know what fuel,ammo,guns,vehicles are running at. rents are insane and mortagages are up and going way higher. in 80s i got my 1st house and was thrilled to get a 10% privately held. children,gr and gr grands are going to live in a dystopian hell.
     

    lariat

    Old Salt
    Full Member
    Minuteman
    Feb 11, 2018
    3,557
    7,537
    Leave the FED out of this--I know its existance runs contrary to a classic liberal economy BUT they are the only adults in the room. How do you combat inflation? STOP PRINTING MONEY (that's on Congress). Otherwise, Interest rates MUST go up. Its how we got out of staglflation in the 80s for those too young to remember--High Interest Rates kill inflation (by killing borrowing). Its painful, but it works.
    The “adults in the room” called inflation “transitory”. IOW, they lied or they are incompetent.
     

    alamo5000

    Major Hide Member
    Full Member
    Minuteman
    Jun 18, 2020
    1,291
    1,395
    There is another huge element here that gets glossed over. It has everything to do with energy.

    If you look back say 40+ years the US had say 300+ oil refineries. Gradually over time that number has decreased, but what increased with economic growth was total volume. Basically the ones that were left got bigger to offset and increase the total volume.

    Within the past two years though the total US refining capacity has actually decreased. Right now in 2023 we went backwards to where we have refining capacity of around 2010.

    This $5-6 dollar per gallon stuff is a direct result of less refining capacity. The price per gallon is still tied to the price of a barrel of crude but there is now another factor causing prices at the pump to go up in ways that cannot be contributed to just crude prices.

    Now add 10-15% or more to pretty much every step of the supply chain simply because of irresponsible energy policy.

    And what can the Fed do about this root cause? Nothing. Yet they will continue raising rates even though it doesn't address at least this root cause (of which there are most likely several).
     
    • Like
    Reactions: mosin46

    Hobo Hilton

    Private
    Full Member
    Minuteman
    Jun 4, 2011
    6,856
    6,084
    71
    Pacific Northwest
    There is another huge element here that gets glossed over. It has everything to do with energy.

    If you look back say 40+ years the US had say 300+ oil refineries. Gradually over time that number has decreased, but what increased with economic growth was total volume. Basically the ones that were left got bigger to offset and increase the total volume.

    Within the past two years though the total US refining capacity has actually decreased. Right now in 2023 we went backwards to where we have refining capacity of around 2010.

    This $5-6 dollar per gallon stuff is a direct result of less refining capacity. The price per gallon is still tied to the price of a barrel of crude but there is now another factor causing prices at the pump to go up in ways that cannot be contributed to just crude prices.

    Now add 10-15% or more to pretty much every step of the supply chain simply because of irresponsible energy policy.

    And what can the Fed do about this root cause? Nothing. Yet they will continue raising rates even though it doesn't address at least this root cause (of which there are most likely several).
    In our lifetime we will see zero refining in America........ The Go Green clan will have us importing 100% refined petroleum products.
    Hand writing is on the wall.
     
    • Angry
    Reactions: Atomic_Lobster

    Darayavaus

    misanthrope
    Full Member
    Minuteman
  • Oct 25, 2019
    3,179
    15,767
    Gulag 13
    Why not print a couple trillion and send it to folks to offset inflation? (Probably a conversation happening in the congress right now)
    not unless you are Ukrainian. the NWO government in DC doesn't do anything for it's own citizens.
     

    mosin46

    Sergeant
    Full Member
    Minuteman
    Supporter+
    Aug 11, 2010
    2,504
    481
    76
    florida 32621
    hope things don't end up like germany in the 30s. wheelbarrel full of cash= loaf of bread. of course,per the NWO,we won't have cash just digital fantasies that allow them complete control.
     
    • Like
    Reactions: Hobo Hilton

    Tempest 455

    Sergeant
    Full Member
    Minuteman
    Mar 4, 2012
    1,013
    749
    55
    Middle TN
    I'm basically in the oil biz (solvents/chemicals) and have been for 38 years. I watch it daily.

    The future moving forward because of the non informed F'ing idiots we have in DC is horrifying to me.
     

    DocRDS

    No One
    Full Member
    Minuteman
    Feb 21, 2012
    2,081
    3,544
    Here
    The “adults in the room” called inflation “transitory”. IOW, they lied or they are incompetent.
    That was a year ago (and by 1 person--the chair, but his vote only counts as 1). How many rate hikes have we had since then? Yup it was a dumb statement. BUT The Fed BOARD manned up and started hiking rates. There are the only ones to do anything. This is not to say the Fed is some magic cure, but lets lay blame where it belongs--Legislature and Executive. The Fed is actually doing its job.
    Treasury is not the same as the Fed. Treasury(Yellen) is executive and very much part of the problem.

    Look at what Milton Friedman talked about with the money supply (Its like he won a prize about it). We've been printing money forever, and once inflation hits how do you deal with it? Tighten the money supply. And it appears they want to continue.
     

    Hobo Hilton

    Private
    Full Member
    Minuteman
    Jun 4, 2011
    6,856
    6,084
    71
    Pacific Northwest
    That was the #1 item after Sandy Hook...... I think this tribe here is looking well past that supply situation...
    Pay off debt, new set of tires for your # 1 vehicle and good enough maintenance to go for a year without having to go into a dealer for repairs.
     
    • Like
    Reactions: mosin46

    Hobo Hilton

    Private
    Full Member
    Minuteman
    Jun 4, 2011
    6,856
    6,084
    71
    Pacific Northwest
    That was a year ago (and by 1 person--the chair, but his vote only counts as 1). How many rate hikes have we had since then? Yup it was a dumb statement. BUT The Fed BOARD manned up and started hiking rates. There are the only ones to do anything. This is not to say the Fed is some magic cure, but lets lay blame where it belongs--Legislature and Executive. The Fed is actually doing its job.

    Treasury is not the same as the Fed. Treasury(Yellen) is executive and very much part of the problem.

    Look at what Milton Friedman talked about with the money supply (Its like he won a prize about it). We've been printing money forever, and once inflation hits how do you deal with it? Tighten the money supply. And it appears they want to continue.
    The FED was not doing their job during 2021........... Lael Brainard has been the only one with guts enough to make some public statements as to what needs to be done. Jerome Powell lost months sitting on his hands because he was waiting for the situation to "Fit The Frame Work"............ This is in my comments earlier in the year.
    Jerome developed the "Frame Work" prior to and during the Pandemic.... He never researched what Paul Volcker did long ago to tame inflation. He was either to politicized or just plain shaking in his boots. Now, "We the People" will pay the price....
     

    lariat

    Old Salt
    Full Member
    Minuteman
    Feb 11, 2018
    3,557
    7,537
    That was a year ago (and by 1 person--the chair, but his vote only counts as 1). How many rate hikes have we had since then? Yup it was a dumb statement. BUT The Fed BOARD manned up and started hiking rates. There are the only ones to do anything. This is not to say the Fed is some magic cure, but lets lay blame where it belongs--Legislature and Executive. The Fed is actually doing its job.

    Treasury is not the same as the Fed. Treasury(Yellen) is executive and very much part of the problem.

    Look at what Milton Friedman talked about with the money supply (Its like he won a prize about it). We've been printing money forever, and once inflation hits how do you deal with it? Tighten the money supply. And it appears they want to continue.
    I hear you. And I am not discounting your opinion as you have valid points. The elected leadership bears much of the responsibility for where we are, no doubt about it. Both parties. My main issue is that the Fed was complicit - they didn’t raise a flag publicly that what the politicians were doing was ruinous to the country. They either knew it would be or they are corrupt as well. I say this confidently because many of us with finance backgrounds knew what was going to happen. The Fed is supposed to be the apex of financial knowledge and experience. This time they absolutely were not, and decided to follow Helicopter Ben theology. And here we are.

    And I will go a step further: anyone trying to follow Keynes instead of Misses is playing games with taxpayer money. It has never ended well. Why people cannot see this is a mystery to me, and the only conclusion I can reach is that they think that whatever untoward results occur will be tolerable and dealt with in future economic environments. It rarely happens. The Fed should have stood up and publicly warned against all of this profligate spending. I wonder how many years of this country’s life have been removed due to their inaction. IMO, a portion (though not all, as your very correctly point out) of the need to raise rates fall on their shoulders.

    This reply is too long, but I thought your response deserved a thoughtful reply as you do make valid points.
     

    lariat

    Old Salt
    Full Member
    Minuteman
    Feb 11, 2018
    3,557
    7,537
    There is another huge element here that gets glossed over. It has everything to do with energy.

    If you look back say 40+ years the US had say 300+ oil refineries. Gradually over time that number has decreased, but what increased with economic growth was total volume. Basically the ones that were left got bigger to offset and increase the total volume.

    Within the past two years though the total US refining capacity has actually decreased. Right now in 2023 we went backwards to where we have refining capacity of around 2010.

    This $5-6 dollar per gallon stuff is a direct result of less refining capacity. The price per gallon is still tied to the price of a barrel of crude but there is now another factor causing prices at the pump to go up in ways that cannot be contributed to just crude prices.

    Now add 10-15% or more to pretty much every step of the supply chain simply because of irresponsible energy policy.

    And what can the Fed do about this root cause? Nothing. Yet they will continue raising rates even though it doesn't address at least this root cause (of which there are most likely several).
    Regarding you last paragraph: I don’t think the Fed can really do anything about the lack of refineries through the power they currently have. The owners of the problem you correctly identify sits with our elected leaders. Especially the ones who supported the Climate Accord and those who a signing on to everything climate related while taking money from the climate related lobbyists instead of thinking about the country and world subsequent generations will live in.
     

    DocRDS

    No One
    Full Member
    Minuteman
    Feb 21, 2012
    2,081
    3,544
    Here
    I hear you. And I am not discounting your opinion as you have valid points. The elected leadership bears much of the responsibility for where we are, no doubt about it. Both parties. My main issue is that the Fed was complicit - they didn’t raise a flag publicly that what the politicians were doing was ruinous to the country. They either knew it would be or they are corrupt as well. I say this confidently because many of us with finance backgrounds knew what was going to happen. The Fed is supposed to be the apex of financial knowledge and experience. This time they absolutely were not, and decided to follow Helicopter Ben theology. And here we are.

    And I will go a step further: anyone trying to follow Keynes instead of Misses is playing games with taxpayer money. It has never ended well. Why people cannot see this is a mystery to me, and the only conclusion I can reach is that they think that whatever untoward results occur will be tolerable and dealt with in future economic environments. It rarely happens. The Fed should have stood up and publicly warned against all of this profligate spending. I wonder how many years of this country’s life have been removed due to their inaction. IMO, a portion (though not all, as your very correctly point out) of the need to raise rates fall on their shoulders.

    This reply is too long, but I thought your response deserved a thoughtful reply as you do make valid points.
    I think we are shades of grey apart looking at the same tree from different angles. But I will conceed, that the Fed didn't do anything earlier and was pretty much an enabler to this spending spree--only that they finally sobered up about 5-10 years late.

    And while I am not a Keynesian, I do think he get some unfair flak (his modern adherents do him no favors)--but I think we could discuss that over beer sometime 🍻
     
    • Like
    Reactions: lariat

    BuildingConceptsllc

    Don't Start None, won't be none.
    Supporter
    Full Member
    Minuteman
    Supporter+
  • Nov 13, 2020
    4,411
    3,501
    Alabama
    The FED was not doing their job during 2021........... Lael Brainard has been the only one with guts enough to make some public statements as to what needs to be done. Jerome Powell lost months sitting on his hands because he was waiting for the situation to "Fit The Frame Work"............ This is in my comments earlier in the year.
    Jerome developed the "Frame Work" prior to and during the Pandemic.... He never researched what Paul Volcker did long ago to tame inflation. He was either to politicized or just plain shaking in his boots. Now, "We the People" will pay the price....


    There's absolutely NO WAY every single one of them didn't know exactly what would happen. This is extremely basic and we all knew, so to think for a second they weren't fully aware is just ridiculous to me. They didn't want to say anything negative against biden and crew. Then they didn't want to raise rates because they knew what it would do. (That's how we know they knew what the freaking massive trippling of the money supply would do too). They finally raised rates too little too late and all of the middle class will pay the price for it. As usual.

    This could be greatly helped and helped immediately by getting energy costs down. Energy is such a massive part of the equation, and it's something the govt basically has total control over, unlike the economy I'm general. Of course he'd have to reverse course on everything he's done so that won't happen, we will all just suffer instead.
     
    Last edited:

    UKDslayer

    Private
    Supporter
    Full Member
    Minuteman
  • Jan 29, 2005
    9,543
    20,005
    Texas
    Leave the FED out of this--I know its existance runs contrary to a classic liberal economy BUT they are the only adults in the room. How do you combat inflation? STOP PRINTING MONEY (that's on Congress). Otherwise, Interest rates MUST go up. Its how we got out of staglflation in the 80s for those too young to remember--High Interest Rates kill inflation (by killing borrowing). Its painful, but it works.

    They just did stop printing money supposedly. On purpose.
     

    BytorJr

    Two Star General
    Full Member
    Minuteman
    Nov 28, 2018
    5,152
    7,528
    Fake numbers. The actual is 20% or more :(
    I personally believe over the past two years we're looking at 50-60%. Don't forget about Shrinkflation too; becasue many products are now about 2/3-3/4 their former size AND are up in price at least 25%. (I'm looking at Microban/lysol here...massive shrink in size and up in price from 4 to 6 bucks a can) I don't give a F about their fake numbers. Gas...up at one point almost triple under Trump, backed off and is now roughly 2x since PJ has decimated the SOP. Eggs, just saw massive increase, and they've almost doubled since last January for dozen (double...as in 2x...that's more than 9%). Beef, up at least 2 bucks a pound (or where I shop about 40%).

    Cars...won't even go there. Other durable goods...same thing.

    Kicking myself in the ass for not purchasing a new roof and new HVAC last year even though the prices were stoooopid high. I just hate buying shit before they're fully used up. (maybe not so much the roof).
     

    lariat

    Old Salt
    Full Member
    Minuteman
    Feb 11, 2018
    3,557
    7,537
    If the supply and cost of fertilizer is any indication there will be a number of goods that will remain expensive and go higher from here. Inflation may reduce in certain areas but I’m betting food won’t be one.
     
    • Like
    Reactions: Hobo Hilton

    BuildingConceptsllc

    Don't Start None, won't be none.
    Supporter
    Full Member
    Minuteman
    Supporter+
  • Nov 13, 2020
    4,411
    3,501
    Alabama
    I personally believe over the past two years we're looking at 50-60%. Don't forget about Shrinkflation too; becasue many products are now about 2/3-3/4 their former size AND are up in price at least 25%. (I'm looking at Microban/lysol here...massive shrink in size and up in price from 4 to 6 bucks a can) I don't give a F about their fake numbers. Gas...up at one point almost triple under Trump, backed off and is now roughly 2x since PJ has decimated the SOP. Eggs, just saw massive increase, and they've almost doubled since last January for dozen (double...as in 2x...that's more than 9%). Beef, up at least 2 bucks a pound (or where I shop about 40%).

    Cars...won't even go there. Other durable goods...same thing.

    Kicking myself in the ass for not purchasing a new roof and new HVAC last year even though the prices were stoooopid high. I just hate buying shit before they're fully used up. (maybe not so much the roof).

    They don't even use food and gas in their inflation numbers at all. It's so bogus....

    Food and energy prices are a huge portion of monthly expenditures for EVERYONE. If they calculated it correctly it would be closer to 35%-40%
     

    DIBBS

    Old Mountain Man-Tired occasionally Grumpy SOB
    Supporter
    Full Member
    Minuteman
    Supporter+
  • Aug 21, 2008
    2,699
    2,345
    WARSHington State
    I continue to be shocked when I go to the grocery store to pick up a few things and they give me the total.

    FJB, Democraps, Repubes, NWO; all the worthless MF'ers
     
    • Like
    Reactions: SilentStalkr