Inflation

[CrittendenWildcat]

I no longer know what a "good" price is for anything, because everything is ~30% more than pre-pandemic. It's really hard to determine right now if you are sinking or swimming, you pay what you're asked to pay and move on to the next price shock.

Looking for thoughts and opinions, are prices today the "new normal?" Should we expect prices to continue to go up? Level off? Will we have a deflationary period where prices fall back to somewhere between what they were pre-pandemic and what they are now?

Personally, I am of the opinion that we will have a deflationary period this fall/winter due to: (1) People having less discretionary income as necessities (especially energy) demand a higher percentage of income; (2) Recession causing businesses to flounder and fail and unemployment inching up; (3) The stock market losing value day after day as people watch their savings and retirement shrink to a fraction of what it had been; and (4) Retailers having an overabundance of stock on hand as they over-ordered trying to get stock in during the pandemic at the very time as the first three factors are taking away buying power away from the average household, which means retailers will have to cut prices if they expect to move inventory during the holiday season.

 

[bigblueinsanity]

You're at the same point as many others. Up to this point, prices start to decrease because people are aware of inflation and stop spending money. However at this point, the inflationary price becomes normal and people will start spending money again and inflation will take off again.

Will prices go back to pre inflation amounts? Maybe but not because inflation will be undone. It would be because of other market factors.

Inflation is controlled by volume of currency. The only way to undo it would be to remove volume from the supply of money. That just isn't going to happen. Especially considering our federal government's propensity to spend way more than they collect in revenue.

 

[TopCatCal]

On Jan. 20 2021, inflation was 1.4%. Now it's close to 9%. What happened on Jan 20 2021 to cause this run away inflation?

 

[BluegrassBlake]

 

[funKYcat75]

32 psi.

 

[Ed323232]

On Jan. 20 2021, inflation was 1.4%. Now it's close to 9%. What happened on Jan 20 2021 to cause this run away inflation?

The country was reeling from the attack on the capital?

 

[jameslee32]

Revisionist history as the Fed proves again like so many Americans, they have no clue about predicting the future. Now that oil has rolled over, every commodity peaked months ago. Even housing is getting destroyed finally. But hey, let's raise interest rates thru eternity after completely ignoring the problem last year. Biden keeping Jay Powell around was a huge mistake as it turns out.

 

[P19978]

On Jan. 20 2021, inflation was 1.4%. Now it's close to 9%. What happened on Jan 20 2021 to cause this run away inflation?

The village idiot showed up.

 

[JumperJack]

The country was reeling from the attack on the capital?

Funny shit. Maybe you’re awake now.

 

[UKMKG]

And people will still vote dem

 

[hmt5000]

The country was reeling from the attack on the capital?

 

[hmt5000]

But here's the kicker.... If you look at foreign markets it appears other countries are dumping US dollars. Those dollars will come home. Inflation is too many dollars chasing too few goods. So more dollars here but is anyone seeing anymore goods? So inflation is going to get even worse.

Thanks Brandon.

 

[Wildcats1st]

What’s this storm gonna cost us? 150 billion? What about workers to rebuild where are they coming from? This thing is gonna compound inflation when the fed is trying to slow the economy. It’s a gift to Biden and dems to to load up some big spending bill full of pork

 

[hmt5000]

What’s this storm gonna cost us? 150 billion? What about workers to rebuild where are they coming from? This thing is gonna compound inflation when the fed is trying to slow the economy. It’s a gift to Biden and dems to to load up some big spending bill full of pork

Guess where our transformers for electric substations come from?.... 2 of the 5 biggest importers are in Europe. With Germany making specific ones exclusively. Guess who is having an energy crisis that is having manufacturing co's shutting their doors instead of continuing to lose money to operate?

 

[JLoad22]

And people will still vote dem

Cuz it’s their religion. All they care about is yelling “we won, woo Hoo!”.