Secular inflation is here

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That’s actually pretty amazing. Usually, the public projects are at least 3x the original budget. Granted, they have more time to get up to that standard.

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Just don’t eat - or hunt and gather your food - and live in a tent. That takes care of a big chunk of it.

Alternatively, own some AAPLs, live on the dividends and enjoy continued share price appreciation. No effort required.

Commodity meat is still cheap. :blush:

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Chicken hearts and livers? Extremely cheap and nutritious.

My Tegus love them.
Me - not so much.

Get those iBonds folks!

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JPow successfully talked the market into believing he’s an ultra hawk. I may be wrong but I don’t think the Fed will be so aggressive as to hike 3 times in 2022. That would absolutely crash the economy. So there is a potential the Fed will surprise the market on the dove side.

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I suspect the same :grinning: Did you read it somewhere or original thinking :thinking:

We should be cautious about these developments. If inflation picks up, I do not think Fed will be able to control it. Damage will come either way. Unless FED thinks (and can show) it is smarter than folks in Argentina and Venezuela.

Three rate hikes = 0.75%. I don’t think that is so large a rate hike that it would crash the economy…

Maybe 10 rate hikes (2.5%) will crash the economy, whereupon Fed will resume cutting rates and printing money again. Rinse and repeat…

Inflated dollars just hide the crashed economy. Economic cycles operate pretty much autonomously

The people who get hurt the most due to both the QE+ rate cutting cycle and the inflation+ rate increase cycle are the so-called “ordinary” folks - the bottom 80%ers.

Reason is that the assets (RE + stocks) are concentrated disproportionately among the top 10-20% in the wealth spectrum. These so-called “rich” people benefit both ways - when there is QE and low rates, their assets inflate ahead of consumer goods and prices. When rates start to increase during the inflationary part of the cycle, assets typically keep up with inflation, so again the rich are not hurt - they at least manage to tread water.

But the ordinary public who don’t own assets fall further behind during the inflationary period because already inflated asset prices continue to go up at rates exceeding their wage increases. And they are the ones at most risk of getting wiped out during the recessionary phase which leads to rate cuts and QE. So they get very little benefit.

The whole Fed game is rigged to benefit the top 10-20% (by wealth) of the population…

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In only line: QE only helps rich and politically connected borrowers (bankers and bondholders, and government) at the cost of savers, usually less earners. It is transfer of wealth from poor and bottom half to top. There is a reason why there is a so much of distress and poverty at the lower rugs of society. Homelessness is just one manifestation.