Inflation?

[Nemo]

I think someone arournd here predicted this.   Might reassess your investments.

Nemo

https://www.foxbusiness.com/markets/biden-spending-impact-inflation-bonds

Bonds
Published 2 hours ago
Biden's trillion-dollar spending may restore inflation missing since '08 crisis
'The tide is about to turn' in a long-running bull market for bonds
By Jonathan Garber FOX Business

President-elect Joe Biden’s promise to spend trillions could bring back a healthy level of inflation that has been lacking since the 2008 financial crisis and put an end to the nearly 40-year bull market in bonds.

Biden unveiled the details Thursday of a $1.9 trillion COVID-19 relief package, the opening gambit in a two-year stretch in which Democrats are likely to have few restraints on their spendingc priorities, with the party controlling both the House and the Senate along with the presidency.

“I think the [inflation] tide is about to turn and the higher inflation provides a basis for the 10-year yield rising" for U.S. Treasurys, said Sri Kumar, president of the Santa Monica, California-based Sri Kumar Global Strategies, pointing to the Biden administration’s plans to spend money to help support lower-income groups.

continued

[JohnyMac]

Because of the stimuluses' and the Chinese Virus spending packages, my financial advising group was calling for 2-3% inflation in 2021.

We will have to see what happens, e.g., additional spending with the new administration and such, some folks have adjusted the forecast 5-6% inflation.

Also please keep in mind, there are many things that are not part of the inflation calculation like petrol products. That commodity was taken out of the equation in 1985. Based on the new Green Deal administration and with states trying to make up lost tax revenue; taxes on all fossil fuels will be going up.

I have read that taxed fossil fuels could double due to these taxes. This may not affect home heating fossil fuels but will certainly affect fossil fuels we use for transportation. This in turn will affect other commodities that are in the inflation calculation such as food, clothing, etc.

My neighbor and I just had the diesel tank used for the tractors topped off.

Also, I have started to read that there could be a carbon tax in our future for folks who heat with wood. There are certain counties in Northern California, Oregon, and Western Washington who have implemented these. How they are taxed now is by charging a tax on the processed wood sold to consumers not unlike a tax on gas. Although I see no noise locally to follow suit, that does not eliminate the federal government from implementing such a tax country wide. 

[pkveazey]

I can get long winded on my posts but this time I'll be brief. Every move we(our Country) has made recently has been in lock step with what happened in Venezuela. In 2008, the wife and I could go to Waffle House and eat for $12 plus tip. Today when we go there and eat exactly the same thing, its $20 plus tip. That's a pretty high rate of inflation. I predict that in another year, that same meal at that same place will be $100 plus tip. Say what??? That's insanity!!!! Yea, exactly. Biden's bullshit want list of 1.9 Trillion for economic recovery and Health care will destroy our monetary system and we will move at warp speed into the Digital Monetary System. I refuse to play along. I don't like to use Checks, Debit Cards, Credit Cards, and absolutely won't swipe a damn cell phone ubder a scanner to pay for things. I use Cash for everything that I can. I use my credit card only for Gas and when I buy something on Amazon. I pay that credit card off every month. There is no way I'm going to get sucked into that digital disaster.

[Nemo]

Seems like Biden's inflation comments regarding Europe may have been a bit early.

Nemo

https://dnyuz.com/2022/07/20/british-inflation-climbs-to-9-4-percent-a-new-40-year-high/

British Inflation Climbs to 9.4 Percent, a New 40-Year High
July 20, 2022
in News

Consumer prices in Britain rose 9.4 percent in June from a year earlier, intensifying the squeeze on household budgets as inflation continued to run at its fastest pace in 40 years.

Rising prices for food and motor fuels were the biggest reason for the jump in inflation in June, up from a 9.1 percent rate the month before, the Office for National Statistics said on Wednesday. Motor fuel prices have risen more than 40 percent over the past year, with gasoline and diesel prices setting record highs. In June, food and drink prices jumped nearly 10 percent from a year earlier, the biggest increase since 2009, with prices for milk, cheese and eggs rising notably over the past month. Household energy bills also remain a major source of soaring inflation.

With inflation at its highest level in four decades, households are feeling the pain acutely because pay increases are lagging far behind prices. Pay, after it was adjusted for inflation and excluding bonuses, fell 2.8 percent in March to May compared with a year earlier, the statistics agency said on Tuesday. That?s the steepest decline in so-called real wages on record.

Since Russia invaded Ukraine, energy, commodity and food prices have jumped higher, worsening inflation around the world. But in Britain, this had collided with a tight labor market that is encouraging employers to offer higher wages and increase prices for their goods and services. For policymakers, there is now a difficult balancing act between raising interest rates to tackle inflation, which is running far above the rate targeted by the Bank of England, and not exacerbating a cost-of-living crisis by tipping the economy into a recession.

?The Russian shock is now the largest contributor to U.K. inflation by some way,? Andrew Bailey, the governor of the Bank of England, said in a speech on Tuesday. ?There is an economic cost to the war, and we all have to recognize that, but at the bank it will not deflect us from setting monetary policy to bring inflation back to the 2 percent target.?

Mr. Bailey said policymakers would discuss whether to raise interest rates by half a percentage point at the bank?s next meeting in August, which would be double the size of recent rate increases.

Some analysts noted that there were signs that core inflation, which strips out more volatile food and energy prices, might have peaked, which could ease the pressure on the central bank to aggressively raise rates amid a gloomy economic outlook. In June, core inflation fell slightly for the second consecutive month.

Data also showed that prices charged in restaurants and for accommodation rose 8.6 percent over the year through June, up from 7.6 percent the month before. Inflation in clothing prices fell slightly but less than usual during the beginning of the summer sales season. Prices for used cars fell for the fifth month in a row, a sign of easing supply problems for some of the most in-demand purchases of last year.

The post British Inflation Climbs to 9.4 Percent, a New 40-Year High appeared first on New York Times.