Inflation.......... ?

[Hobo Hilton]

Staggering numbers for a pay raise. Unfortunately, still way below the rate of inflation. One more "leap frog increase".
Higher inflation creates higher wages.... Higher wages creates higher inflation...... A cycle that can not be maintained by raising the National Debt.
Unfortunate for the American people.

Oct 25 (Reuters) - The United Auto Workers (UAW) union reached a tentative labor deal on Wednesday with Ford Motor (F.N), the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September.
The proposed accord, which UAW's leadership must still approve, provides a 25% wage hike over the 4-1/2-year contract, starting with an initial increase of 11%.
The Ford deal, which could help create a template for settlements of parallel UAW strikes against General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI), would amount to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.
"We told Ford to pony up and they did," Fain said in a video post on Facebook, adding that the strike at Ford "has delivered".
In addition to the general wage hike, Fain said the lowest-paid temporary workers would see raises of more than 150% over the contract term and employees would reach top pay after three years. The union also won the right to strike over future plant closures, he said.
The UAW also succeeded in eliminating lower-pay tiers for workers in certain parts operations at Ford - an issue Fain highlighted from the start of the bargaining process, wearing T-shirts with the slogan "End Tiers."
The Ford contract would reverse concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were skidding toward bankruptcy, and Ford was mortgaging assets to stay afloat.
"We know it breaks records," Fain said in a video address Wednesday night. "We know it will change lives. But what happens next is up to you all."

Ford, UAW reach tentative deal to end strike including record pay raise

The United Auto Workers union reached a tentative labor deal with Ford, the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers.

www.reuters.com

 

[Hobo Hilton]

Spending at the consumer level split fairly evenly between goods and services, with the two measures up 4.8% and 3.6% respectively.
Consumers are paying more and getting less and the Government thinks it's wonderful...

U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected

GDP was expected to increase at a 4.7% annualized pace in the third quarter, according to a Dow Jones consensus estimate.

www.cnbc.com

 

[Malum Prohibitum]

This means that inflation has forced home buyers to earn 52% more income over a period of one year. Staggering.

That's not what it means at all. The median wage last year was not enough to buy the median home. They just said what the median wage was last year, not that it was sufficient to purchase the median home.

 

[Hobo Hilton]

That's not what it means at all. The median wage last year was not enough to buy the median home. They just said what the median wage was last year, not that it was sufficient to purchase the median home.

The bottom line result is the same. Regardless of how a person arrives there.
When the Government says a young married couple, both gainfully employed, can go out and buy a house and the mortgage broker will not loan them the money, the result is the same. No house for them.

 

[Lightning8]

Staggering numbers for a pay raise. Unfortunately, still way below the rate of inflation. One more "leap frog increase".
Higher inflation creates higher wages.... Higher wages creates higher inflation...... A cycle that can not be maintained by raising the National Debt.
Unfortunate for the American people.

Oct 25 (Reuters) - The United Auto Workers (UAW) union reached a tentative labor deal on Wednesday with Ford Motor (F.N), the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers since mid-September.
The proposed accord, which UAW's leadership must still approve, provides a 25% wage hike over the 4-1/2-year contract, starting with an initial increase of 11%.
The Ford deal, which could help create a template for settlements of parallel UAW strikes against General Motors (GM.N) and Chrysler parent Stellantis (STLAM.MI), would amount to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.
"We told Ford to pony up and they did," Fain said in a video post on Facebook, adding that the strike at Ford "has delivered".
In addition to the general wage hike, Fain said the lowest-paid temporary workers would see raises of more than 150% over the contract term and employees would reach top pay after three years. The union also won the right to strike over future plant closures, he said.
The UAW also succeeded in eliminating lower-pay tiers for workers in certain parts operations at Ford - an issue Fain highlighted from the start of the bargaining process, wearing T-shirts with the slogan "End Tiers."
The Ford contract would reverse concessions the union agreed to in a series of contracts since 2007, when GM and the former Chrysler were skidding toward bankruptcy, and Ford was mortgaging assets to stay afloat.
"We know it breaks records," Fain said in a video address Wednesday night. "We know it will change lives. But what happens next is up to you all."

Ford, UAW reach tentative deal to end strike including record pay raise

The United Auto Workers union reached a tentative labor deal with Ford, the first of Detroit's Big Three car manufacturers to negotiate a settlement to strikes joined by 45,000 workers.

www.reuters.com

Automation and AI = dramatically fewer UAW (and white collars) making that better money

 

[Hobo Hilton]

Existing-home sales will fall in 2023 to the lowest rate since 2008, National Association of Realtors forecasts
The numbers: U.S. pending home sales rebounded in September, but remain near a record low as high mortgage rates and low inventory continue to hurt the real-estate sector.

Pending-home sales stay near record low despite modest pickup in September

www.morningstar.com

 

[Hobo Hilton]

In order to tame inflation, the interest rate must be raised above the inflation rate.
Today, the interest rate should be 18%. Reward those American's who have a bit of money to put in a bank and actually get some decent interest money in return.
The big banks are making money off the consumer and his / her debt. American's are now slaves.

The Federal Reserve may not hike interest rates next week, but consumers are unlikely to feel any relief

The Federal Reserve is expected to announce no rate hike at the end of its two-day meeting next week. Here's what that means for your wallet.

www.cnbc.com

 

[Hobo Hilton]

Inflation at 14%....

McDonald’s revenue climbs 14% as price hikes boost U.S. sales​

McDonald’s revenue climbs 14% as price hikes boost U.S. sales

McDonald's third-quarter earnings and revenue beat Wall Street's estimates.

www.cnbc.com

 

[IronSkillet]

With no end in sight for inflation we have decided to sell some stocks and drain off the savings too build a small storage workshop. Not sure if this is one of my smart ideas, but feel we will still having something if the dollar collapse happens.
Looking @ a Red Iron building 36’x38’ with 12’ sidewall.

 

[Hobo Hilton]

With no end in sight for inflation we have decided to sell some stocks and drain off the savings too build a small storage workshop. Not sure if this is one of my smart ideas, but feel we will still having something if the dollar collapse happens.
Looking @ a Red Iron building 36’x38’ with 12’ sidewall.

Wise move. Many reasons.
In my case, having a shop allows me to maintain my equipment and store much of it under cover during the winter.
In a worst case scenario, it could house a relative or care giver who falls on hard times.

 

[Hobo Hilton]

It's turning into a "Numbers Game" with the information the FED's continue to put out.
One example, from the article linked below:

A broader measure of home prices, the national index, rose on a month-over-month basis in August by 0.9%, but rose 2.6% over the past year. All numbers are seasonally adjusted..

One game the FED's play is showing something in percentages. The other game is showing it in USD's.
It's not a big deal for a can of $2.00 beans to go up in cost 2.6%. That is only raises the cost to $2.06.
When a $400k house goes up 2.6% that is a whopping $10,400 more.
Those COLA numbers the Government spews out focus on groceries and not house notes and rents.
It's not the little things that are squeezing American's, it's the big ticket items we must all pay for. By "big ticket" I don't mean luxury items, just every day goods and services.

U.S. home prices rose for the sixth month in a row, Case-Shiller says

www.morningstar.com

 

[Hobo Hilton]

The only thing Jerome Powell is doing is "Stoking The Fire"..... In this case, the fire is inflation. Painted himself in a corner.
To the average American this is similar to renting a house from a land lord who is one step from bankruptcy. Start planning your next move.
____________

Powell Not Satisfied With Inflation Progress “Inflation has moderated since the middle of last year and readings over the summer were quite favorable. But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said.5 mins ago

Fed Meeting Today: FOMC Decides to Skip Interest-Rate Hike; Officials Keep Door Open to More Increases; Watch Jerome Powell’s Press Conference Live

News from the November Fed meeting, FOMC policy statement, and interest-rate decision, as well as Chairman Jerome Powell's press conference.

www.barrons.com

 

[babyguppy]

Inflation at 14%....

McDonald’s revenue climbs 14% as price hikes boost U.S. sales​

McDonald’s revenue climbs 14% as price hikes boost U.S. sales

McDonald's third-quarter earnings and revenue beat Wall Street's estimates.

www.cnbc.com

McDonald’s U.S. traffic fell, marking the first quarter this year that the metric dipped. Across the restaurant industry, consumers making less than $45,000 visited less often, accounting for the drop in McDonald’s traffic, according to CEO Chris Kempczinski.

 

[ZiaHunter]

Just notified of price increase from our primary supplier of concrete and not the first one this year. This is the largest supplier in our market and our company their biggest customer. Bidenomics at work and saw this same trend just before the crash in '07. $155/CY for 3000 plus $40 per load for fuel surcharge and environmental charges

 

[Hobo Hilton]

When it comes to inflation, “we aren’t there yet, but we’re headed in the right direction,” Barkin said. But he added he’s hearing that businesses are still willing to probe around to see if they can raise prices but are past the peak of being able to lift what they charge for their goods and services.
____________________________
Reminds me of being on a long road trip with children. One always asks "When are we going to get there"?... another "Why are we going the long route" ?.... another " I thirsty / hungry / need to pee, can we stop now "?..... As we pass the sign "Next Services 100 miles".... LOL

Fed's Barkin: Fed has time to see data before making next rate move call

Federal Reserve Bank of Richmond President Thomas Barkin said on Tuesday that the U.S. central bank still has time to decide on its next interest rate move as anecdotal information points to an economy that’s slowing amid a cooling trend in inflation pressures.

www.reuters.com

 

[Hobo Hilton]

Think about it

 

[mi650]

It's turning into a "Numbers Game" with the information the FED's continue to put out.
One example, from the article linked below:

A broader measure of home prices, the national index, rose on a month-over-month basis in August by 0.9%, but rose 2.6% over the past year. All numbers are seasonally adjusted..

One game the FED's play is showing something in percentages. The other game is showing it in USD's.
It's not a big deal for a can of $2.00 beans to go up in cost 2.6%. That is only raises the cost to $2.06.
When a $400k house goes up 2.6% that is a whopping $10,400 more.
Those COLA numbers the Government spews out focus on groceries and not house notes and rents.
It's not the little things that are squeezing American's, it's the big ticket items we must all pay for. By "big ticket" I don't mean luxury items, just every day goods and services.

U.S. home prices rose for the sixth month in a row, Case-Shiller says

www.morningstar.com

Gotta disagree there.

Yes, inflation has hit everything, but the vast majority aren't looking to buy a house. Everyone is buying gas, food, meds, utilities, etc...

 

[Hobo Hilton]

Gotta disagree there.

Yes, inflation has hit everything, but the vast majority aren't looking to buy a house. Everyone is buying gas, food, meds, utilities, etc...

OK........ Factor in that every human being in America must have "a roof over their head".
Those not shopping for a house are paying rent or living in Mom's basement.
So, that vast majority you speak of are paying, one way or another, for a roof over their head.
Pre-pandemic those people could have bought a house and be paying less for a house note than they are paying for rent today.

As of June 30, the average monthly rent nationally for a SFR property stood at $2,495, up 13.4% year over year, according to HouseCanary's report

average rent on a sfr in America - Google Search

April 2024 Rent Report

National rents remained positive in March, with the median price for an apartment rising by just over three-quarters of a percentage point. While last

www.rent.com

 

[NoDopes]

Small bank goes under from failed commercial trucking loans

 

[Hobo Hilton]

Something for you young guys to ponder. During the time shown in this clipping I was in my mid 20's, married, 2 children, working full time, two vehicles (both paid for), just bought 6 acres of land and had a contractor building me a 2,000 sq ft house. Wife was a stay at home Mom raising my children. Life for the middle class was much better then than now.

https://www2.census.gov/prod2/popscan/p60-093.pdf

 

[Hobo Hilton]

Reducing their reliance on the USD..... China knows where the USD is heading and is distancing itself.

 

[Hobo Hilton]

 

[mi650]

OK........ Factor in that every human being in America must have "a roof over their head".
Those not shopping for a house are paying rent or living in Mom's basement.
So, that vast majority you speak of are paying, one way or another, for a roof over their head.
Pre-pandemic those people could have bought a house and be paying less for a house note than they are paying for rent today.

As of June 30, the average monthly rent nationally for a SFR property stood at $2,495, up 13.4% year over year, according to HouseCanary's report
View attachment 8264290

average rent on a sfr in America - Google Search

April 2024 Rent Report

National rents remained positive in March, with the median price for an apartment rising by just over three-quarters of a percentage point. While last

www.rent.com

And those who already have houses? Today's rates don't affect people who bought 5-10-15 years ago, but inflation in every other area does.

 

[Hobo Hilton]

And those who already have houses? Today's rates don't affect people who bought 5-10-15 years ago, but inflation in every other area does.

Those who have been apartment dwellers for the past 15 years are coming out on the short end of this stick. Even if a land lord is bound by 'rent control" he will sell that property and it will be turned into condo's with a HOA.
In the mean time the "Government" (local, state, Federal) is housing all of the 1 million illegals and taking those dwellings off the market and you and I are paying for the fiasco.

 

[Hobo Hilton]

FED Reserve - Too little, too late... And here we are.

The US Housing Market Has Become an Impossible Mess

Americans with cheap loans don’t want to sell. Those without homes can’t afford to buy. Will anything budge?

www.bloomberg.com

 

[Hobo Hilton]

Worldwide

RBA’s Bullock Set for First Rate Hike as Inflation Lingers

(Bloomberg) -- Australia’s central bank is forecast to raise interest rates on Tuesday, ending a four-meeting pause as persistent inflation and broader economic resilience suggest a further clampdown is needed to cool prices.Most Read from BloombergAmazon’s Jeff Bezos Announces Move to Miami...

finance.yahoo.com

 

[Hobo Hilton]

Retirees will pay more for Medicare Part B premiums in 2024. What to know about managing those costs

With Medicare Part B premiums slated to go up next year, now is the time to evaluate how much you will pay.

www.cnbc.com

 

[Bigfatcock]

I’m seeing big ticket items start to back up on lots and in stores.

Starting to see a lot of listings not selling across many forums. Guns, knives, machinery, watches, etc.

Guess nobody wants to buy a Kubota at 8%? Nobody wants to finance a Rolex through PayPal at 21%?

I’m sitting on so much cash right now just waiting to scoop up some quality goods.

I figure about 8 more months of solid consumer spending before it finally cracks. People will max out cards to pay for krimuss, then they’ll be baller status during tax refund season, and will probably start liquidating July-November of next year.

 

[Hobo Hilton]

I’m seeing big ticket items start to back up on lots and in stores.

Starting to see a lot of listings not selling across many forums. Guns, knives, machinery, watches, etc.

Guess nobody wants to buy a Kubota at 8%? Nobody wants to finance a Rolex through PayPal at 21%?

I’m sitting on so much cash right now just waiting to scoop up some quality goods.

I figure about 8 more months of solid consumer spending before it finally cracks. People will max out cards to pay for krimuss, then they’ll be baller status during tax refund season, and will probably start liquidating July-November of next year.

I'm seeing inventory building up at the RV sales yards, the 4 wheeler shops and the consignment rack at my LGS.
Building up at my local Albertsons grocery store, also. All the $3.99 hamburger buns were sold out.

 

[Bigfatcock]

I'm seeing inventory building up at the RV sales yards, the 4 wheeler shops and the consignment rack at my LGS.
Building up at my local Albertsons grocery store, also. All the $3.99 hamburger buns were sold out.

View attachment 8265821

My pantry is stocked based off of sales. Has been since my early 20’s. Only an idiot would by $6.49 buns.

 

[Hobo Hilton]

My pantry is stocked based off of sales. Has been since my early 20’s. Only an idiot would by $6.49 buns.

The Federal Government is buying them for those on the SNAP card (food stamps)... Buying a lot of rib eye's for those pit bulls the "Boyz in the Hood" are breeding, also.

 

[Lightning8]

I’m seeing big ticket items start to back up on lots and in stores.

Starting to see a lot of listings not selling across many forums. Guns, knives, machinery, watches, etc.

Guess nobody wants to buy a Kubota at 8%? Nobody wants to finance a Rolex through PayPal at 21%?

I’m sitting on so much cash right now just waiting to scoop up some quality goods.

I figure about 8 more months of solid consumer spending before it finally cracks. People will max out cards to pay for krimuss, then they’ll be baller status during tax refund season, and will probably start liquidating July-November of next year.

Again, just like 2008. Second homes, RVs, boats, ATVs, jeeps, side by sides will go first - then the guns and so forth.

 

[Hobo Hilton]

Again, just like 2008. Second homes, RVs, boats, ATVs, jeeps, side by sides will go first - then the guns and so forth.

True. Not as many buyers of gold jewelry for a Christmas present, either. Snap shot from today at close.

 

[Hobo Hilton]

Powell's colleagues are leaving the building...
You Plebeians just keep on running up the balance on your charge cards.
_______________
Powell said that inflation is “well above” where the Fed would like to see it.
“My colleagues and I are gratified by this progress but expect that the process of getting inflation sustainably down to 2 percent has a long way to go,” he said.

Powell says Fed is 'not confident' it has done enough to bring inflation down

Powell said in remarks for an International Monetary Fund audience that more work could be ahead in the battle against high prices.

www.cnbc.com

 

[Hobo Hilton]

Jerome Powell, too little, to late. Politicized

“We are not confident,” Powell said, that the Fed's benchmark rate is high enough to steadily reduce inflation to 2%. He added: “We know that ongoing progress toward our 2% goal is not assured. Inflation has given us a few head fakes.”

Business Highlights: The Fed’s cautious approach; Biden says workers need ‘a fair shot’

Business Highlights: A summary of the day’s top stories in the business world.

apnews.com

 

[Hobo Hilton]

Amazing how a Government project can go from $800 million in April 2022 into a $6 billion project in November 2023.
Must be the neighborhood.
_____________

To attain partial funding for the project, the Airports Authority has applied for a Federal Aviation Administration (FAA) grant under the recently enacted Bipartisan Infrastructure Law, which includes a competitive grant programme to help airports upgrade or replace aging facilities. The application seeks $230 million to begin development of the 400,000-square-foot facility, which is expected to ultimately cost between $500 million and $800 million. The Airports Authority is working with United Airlines, the largest carrier serving Dulles, and other airlines in planning the design, funding and construction of the new concourse.
__________________
The $6 billion will encompass the buildout of C/D gates, the current A gates that are the regional gates that will become contact gates for international flights, [and] the E gates."

Washington Dulles International Airport proposes new 14-gate concourse

Dulles Airport welcomes 14-gate concourse, to replace outdoor boarding areas, expand passenger amenities, and job opportunities.

www.internationalairportreview.com

https://www.patreon.com/posts/92548753?s=03

Dulles Airport Eyes $6 Billion in New Concourses Led by United Growth

Metropolitan Washington Airports Authority (MWAA) CEO Jack Potter revealed that it was close to signing an agreement for a $6 billion investment in new concourses, roadway infrastructure, and more. This is all fueled by United Airlines' plans for future growth.

aeroxplorer.com

 

[Hobo Hilton]

Got to love these comments from the FED. The only thing knocking down inflation is "More Inflation"...
That, in itself, has increased the credit card debt of Americans... Robbing Peter to pay Paul.... Unsustainable.
____________
Tighter monetary policy is helping bring down the pace of inflation but not to a level where policymakers should feel too comfortable, San Francisco Federal Reserve President Mary Daly said Friday.
“The news on inflation has been fairly good, and we shouldn’t dismiss that,” the central bank official said during an interview on CNBC’s “The Exchange.” “All of that said, it is far too early to declare victory.”

Fed's Mary Daly says it's ‘too early to declare victory’ on inflation

Tighter policy is helping bring down inflation but not to where policymakers should feel too comfortable, the San Francisco Fed president said.

www.cnbc.com

 

[Hobo Hilton]

An interest rate of 5.5% only increases inflation.... That number does not tame inflation.
All part of the plan.
__________

The US central bank has held its key interest rate at its current 22-year high as it seeks to stabilize price rises, which had recently reached near-record levels.
The Federal Reserve's rate target remains at 5.25%-5.5%.
The bank has been raising borrowing costs with the hope of cooling the economy and slowing inflation, the rate at which prices rise.

US Federal Reserve holds interest rates at 22-year high

The world's biggest economy keeps borrowing costs higher in a bid to control price rises.

www.bbc.co.uk

 

[Hobo Hilton]

"The challenge with inflation is it's cumulative. So, if inflation goes up 8% one year, 10% the next year, and the rate of inflation growth slows down to 3%, big deal. But the price of a home is 30% higher than it was in 2020. The price of eggs is almost double what it was in 2020, and prices don't come down," Mitch Roschelle, Madison Ventures Plus managing director, told FOX Business.

Inflation may be easing but consumer prices remain high

The latest CPI data is expected to show that prices are continuing to ease but remain higher than they were pre-pandemic and still above the Federal Reserve's 2% target level.

www.foxbusiness.com

 

[babyguppy]

"The challenge with inflation is it's cumulative. So, if inflation goes up 8% one year, 10% the next year, and the rate of inflation growth slows down to 3%, big deal. But the price of a home is 30% higher than it was in 2020. The price of eggs is almost double what it was in 2020, and prices don't come down," Mitch Roschelle, Madison Ventures Plus managing director, told FOX Business.

Inflation may be easing but consumer prices remain high

The latest CPI data is expected to show that prices are continuing to ease but remain higher than they were pre-pandemic and still above the Federal Reserve's 2% target level.

www.foxbusiness.com

right here..........
the price of a home is 30% higher than it was in 2020. The price of eggs is almost double what it was in 2020, and prices don't come down,"
...
egg prices tripled in my area

 

[Hobo Hilton]

right here..........
the price of a home is 30% higher than it was in 2020. The price of eggs is almost double what it was in 2020, and prices don't come down,"
...
egg prices tripled in my area

When I was young, working in the Louisiana oil patch, we had a short / quick saying... "Plus, Plus, Plus" that covered many situations.
Today, I apply it to inflation more than anything else.

 

[Hobo Hilton]

More lies for this month:

Here’s the inflation breakdown for October 2023 — in one chart

The consumer price index continued a steady decline in October on the back of lower gasoline prices.

www.cnbc.com

CPI Home : U.S. Bureau of Labor Statistics

www.bls.gov

 

[Hobo Hilton]

WASHINGTON, Nov 14 (Reuters) - The U.S. Postal Service on Tuesday reported a $6.5 billion net loss for the 12 months ending Sept. 30 and said it will not breakeven next year as first-class mail fell to the lowest volume since 1968.
The Postal Service said revenue fell 0.4% to $78.2 billion results. U.S. Postmaster General Louis DeJoy said the loss includes $2.6 billion in inflation costs "above what we projected and what we were able to recover... We are not happy with this result."

US Postal Service reports $6.5 billion net loss for 2023 fiscal year

The U.S. Postal Service on Tuesday reported a $6.5 billion net loss for the 12 months ending Sept. 30 and said it will not breakeven next year as first-class mail fell to the lowest volume since 1968.

www.reuters.com

 

[NoDopes]

Hmmm. Health premiums down 34% driving down CPI????

 

[Hobo Hilton]

Many older Americans having difficulty managing debt, AARP survey indicates

A recent AARP survey of Americans aged 50 and older found many are struggling to manage their debt load amid elevated inflation and high interest rates.

www.foxbusiness.com

 

[babyguppy]

Many older Americans having difficulty managing debt, AARP survey indicates

A recent AARP survey of Americans aged 50 and older found many are struggling to manage their debt load amid elevated inflation and high interest rates.

www.foxbusiness.com

starve and stay within a budget or take out a loan and eat...

 

[Hobo Hilton]

starve and stay within a budget or take out a loan and eat...

The less reliant Americans, of any age, are on the USD the longer they will be able to sustain themselves.

 

[Mr.BR]

The less reliant Americans, of any age, are on the USD the longer they will be able to sustain themselves.

This bunch absolutely not relying on USD

 

[Hobo Hilton]

This bunch absolutely not relying on USD

The residents need to "Police" their neighborhood. Seeing this worldwide...

The end result:

 

[NoDopes]

Two weeks later... "Why des pepl be locking everyting up en shit, yo man.. dats not rite!'