Spending trillions you don't have might cause unwanted side effects? Who knew?

[Steeltime]

Consumer prices rise more than expected, pushed by 9.1% jump in gasoline​

Published Tue, Apr 13 20218:30 AM EDTUpdated Tue, Apr 13 202110:03 AM EDT

U.S. consumer price index rose 0.6% in March vs 0.5% increase expected

The consumer price index rose 0.6% from the previous month but 2.6% from the same period a year ago. The year-over-year gain is the highest since August 2018 and was well above the 1.7% recorded in February. The index was projected to rise 0.5% on a monthly basis and 2.5% from March 2020, according to Dow Jones estimates.

The report “is the clearest indication so far that the signs of mounting inflation evident in business surveys and producer prices are feeding through to stronger consumer prices,” wrote Michael Pearce, senior U.S. economist at Capital Economics. “For all the focus on supply disruptions pushing goods prices higher, the strongest upward pressure on prices is coming from the services sector.”

Gasoline prices were the biggest contributor to the monthly gain, surging 9.1% in March and responsible for about half the overall CPI increase. Gasoline is up 22.5% from a year ago, part of a 13.2% increase in energy prices.

Consumer prices rise more than expected, pushed by 9.1% jump in gasoline

The consumer price index rose 0.6% in March from the previous month and 2.6% from a year ago, according to the Department of Labor.

www.cnbc.com

Whaaaat??? Spending money faster than you can print it may trigger a lower value for the currency (a.k.a., inflation) while slamming petroleum production and transportation leads to higher energy prices?

That is just crazy!!

 

[Booted]

 

[Steelr4evr]

Just can't let this country get rolling good for long. We have to start ******* it hard from day one when we get in power.

Meanwhile people are fleeing democrat run states and cities like the Israelites fleeing Egypt.

That fundamental commie change sucks *** doesn't it? Don't vote that **** in your new state or you won't have anyplace left to flee.

Maybe try paying attention to actions and not a bunch of lies they tell you to sucker your dumb ignorant *** into voting for them.

 

[DBS1970]

You don't even have to go back to the Weimar Republic to see what the effects will be. Venezuela has it right now HYPER INFLATION!!!

 

[FSF]

Last time (2009) they did massive stimulus the dollar lost value but it didn’t DROP to nothing like was played on in fears.

it did make commodities skyrocket in price (so if you were invested in anything from gold to frozen Orange juice you made money)

Your dollar didn’t go as far, but to morons who thought the Govt was helping them... the rich made money off what they were too stupid to realize

 

[FSF]

You don't even have to go back to the Weimar Republic to see what the effects will be. Venezuela has it right now HYPER INFLATION!!!

Not gonna happen. Not as long as we are the reserve currency for the world. Essentially it means that there is inherent value in our currency that doesn’t exist elsewhere

if anyone tries to tell you Bitcoin gonna replace the Dollar—tell them it’s possible as it’s inevitable the dollar doesn’t stay reserve currency.... but it’s gonna be so gradual most of us will be dead by the time it really happens & matters.

The Euro was created for the same purpose and it didn’t make a dent.

 

[Badcat]

The problem is that people who dont understand the market, point to it as a sign the economy is doing great. 7 companies account for 40% of the market right now. SEVEN. If that doesn't make you pucker then you need to pick up a damn book and learn.

1. I'm moving my 401K into funds that are heavy into companies that invest in precious metals (Platinum, Gold, Silver) and metals that are used to make batteries. (Nickle, copper, lithium).
2. I have orders in to purchase Gold and Silver. They are low and ready to go through the roof.
3. Crypto Currency. I invest 10% in Bitcoin (Gold Standard) and then the rest in Alt coins that are Ethereum based and categorized as NFTs. Polkadot, Cosmos, Ox, etc. You can find them on Coin Base and KuCoin exchanges.

I'm not telling you what to do, and this isn't me giving you financial advice. Any actions that you take are your responsibility. But, I would suggest that you look to move away from anything that has to do with the dollar. If you haven't read about what the IMF has done with Special Drawing Rights (SDRs), basically creating a new FIAT currency out of thin air as to keep lending...You need to read into it. Scary times ahead.

 

[IndySteel]

Gas here is up closer to 30% since the fraud election.

 

[DBS1970]

Not gonna happen. Not as long as we are the reserve currency for the world. Essentially it means that there is inherent value in our currency that doesn’t exist elsewhere

if anyone tries to tell you Bitcoin gonna replace the Dollar—tell them it’s possible as it’s inevitable the dollar doesn’t stay reserve currency.... but it’s gonna be so gradual most of us will be dead by the time it really happens & matters.

The Euro was created for the same purpose and it didn’t make a dent.

You can tell yourself that if it helps you sleep at night. But we have increased the money supply by a third in the last year and would you look at that prices are up 30% serious there is no rule that says a reserve currency can’t be Hyper inflationary. What will happen is if we inflate the dollar too much more it will be dropped as the world reserve currency.

 

[Badcat]

You can tell yourself that if it helps you sleep at night. But we have increased the money supply by a third in the last year and would you look at that prices are up 30% serious there is no rule that says a reserve currency can’t be Hyper inflationary. What will happen is if we inflate the dollar too much more it will be dropped as the world reserve currency.

China has been pushing hard to remove the dollar standard, and the deflation of the dollar is only aiding them in their argument. If that happens, the United States will experience a severely weakened dollar , meaning it will lose 80-90% of it worth. I just read that in "Caracas, this week, a Big Mac cost 145,000 bolívars; in American cities, it cost an average of $5.28. The ratio of those prices gives a PPP exchange rate of 27,500 bolívars. Two years ago, the rate was 27 bolívars. By this yardstick, the currency has lost 99.9% of its value in almost no time." ~ The Economist

Are you ready for a $5,000 Big Mac? Your 401K will be enough to by some groceries.

 

[21STEELERS21]

Gas prices were artificially held down last year due to the pandemic. There is far less gas demand when you work from home and don't vacation. It is kind of obvious that gas prices will go up this year as everything opens up and people begin traveling again. It's kind of ironic that the same people complaining about lockdowns also complain about gas prices rising when restrictions are lifted.

Maybe next we can complain about wages going up because unemployment is going down.

 

[IndySteel]

Gas prices were artificially held down last year due to the pandemic. There is far less gas demand when you work from home and don't vacation. It is kind of obvious that gas prices will go up this year as everything opens up and people begin traveling again. It's kind of ironic that the same people complaining about lockdowns also complain about gas prices rising when restrictions are lifted.

Maybe next we can complain about wages going up because unemployment is going down.

Wrong, as usual. Gas prices were low during Trump's booming economy, before the fake pandemic. They are up now because Xiden is continuing Oterrorist's war on oil & gas.

 

[Djfan]

Invest where ever you wish. My best guess is that the economy will crash so significantly that we all will be screwed. The only thing I won't do is allow my house to be taken. That's something I will fight for.

 

[Superman]

Gas prices were artificially held down last year due to the pandemic. There is far less gas demand when you work from home and don't vacation. It is kind of obvious that gas prices will go up this year as everything opens up and people begin traveling again. It's kind of ironic that the same people complaining about lockdowns also complain about gas prices rising when restrictions are lifted.

Maybe next we can complain about wages going up because unemployment is going down.

you almost hit on all the Dim Talking Points.
A for effort.
F for Failure, though.

you forgot to tie in the increased demand for gas since the Texas freeze-over.
tsk tsk

 

[DBS1970]

China has been pushing hard to remove the dollar standard, and the deflation of the dollar is only aiding them in their argument. If that happens, the United States will experience a severely weakened dollar , meaning it will lose 80-90% of it worth. I just read that in "Caracas, this week, a Big Mac cost 145,000 bolívars; in American cities, it cost an average of $5.28. The ratio of those prices gives a PPP exchange rate of 27,500 bolívars. Two years ago, the rate was 27 bolívars. By this yardstick, the currency has lost 99.9% of its value in almost no time." ~ The Economist

Are you ready for a $5,000 Big Mac? Your 401K will be enough to by some groceries.

Yeah I’m gonna call bullshit on making the dollar more valuable being the cause of hyper inflation.

 

[Steeltime]

Not gonna happen. Not as long as we are the reserve currency for the world. Essentially it means that there is inherent value in our currency that doesn’t exist elsewhere

I have written two fairly lengthy posts setting forth details for what Badcat noted above, i.e., the push by China to make its yuan the world currency. They have support in a lot of Europe, Africa, and South America. If that happens - arguably when that happens - we will feel hyperinflation, which is one of the greatest causes of poverty in the developed world.

Gas prices were artificially held down last year due to the pandemic. There is far less gas demand when you work from home and don't vacation. It is kind of obvious that gas prices will go up this year as everything opens up and people begin traveling again. It's kind of ironic that the same people complaining about lockdowns also complain about gas prices rising when restrictions are lifted.

You idiot, the United States had the lowest unemployment rate in most of the nation's history in December, 2019 at 3.5%, where his administration brought millions back to the job market and brought about very significant increases in median income. So what happened to gas prices? Must have exploded under your theory. Right? RIGHT?

December 16, 2019 Make it six straight weeks: The national average price of gasoline has fallen for the sixth consecutive week, posting a 3 cent decline over the last week to $2.55 per gallon today according to GasBuddy data compiled from more than 11 million individual price reports covering nearly 151,150 gas stations across the country. The average price of diesel fell 0.6 cents to $2.98 per gallon.

Six Straight: Gas Prices Drop Again As Christmas Nears

The national average price of gasoline has fallen for the sixth consecutive week, posting a 3 cent decline over the last week to $2.55 per gallon today according to GasBuddy data.

www.gasbuddy.com

Maybe next we can complain about wages going up because unemployment is going down.

Are you pretending to be this stupid? I posted a series of reports on the Trump economy in 2018 and 2019, noting the significant increase in median income.

Did a single person COMPLAIN about the wage increases I noted? Did I complain?


Try to stop being a complete idiot, if only for a day.

 

[Badcat]

Yeah I’m gonna call bullshit on making the dollar more valuable being the cause of hyper inflation.

That's not what I'm saying at all...I'm saying the opposite. The central bank is flooding dollars out the door, they can't keep this up much longer. The Fed will have to begin to raise interest rates and when they do...POP! goes some bubbles!

 

[FSF]

I have written two fairly lengthy posts setting forth details for what Badcat noted above, i.e., the push by China to make its yuan the world currency. They have support in a lot of Europe, Africa, and South America. If that happens - arguably when that happens - we will feel hyperinflation, which is one of the greatest causes of poverty in the developed world.

 

[FSF]

Don’t know how old you are, but China has been pushing for change in Reserve Currency since we were playing with action figures.

The Yaun will never be Reserve Currency as economic data from China is too shielded—economists can make analysis on what’s being imported but lack of transparency, no major world player nation trusts them economically. Their reputation for manipulate currencies at scale is well deserved. Don’t think the pandemic is going to help them and India hates their guts. China badly wants Taiwan back and if that ever happened by military force, best have a bunker and lot of Twinkies.

Knowing that, China pushed hard for another option during Great Recession in 2009 called an SDR - no need to delve into how that turned out.

US became the Reserve Currency from UK because of WWII. As from the 4 years of being a Project Manager at Economic Research Firm our Firm’s President would say at Conferences: “it was because we played an away game”. One guest speaker put it best about the Euro — Europe has been a continent for 2000 years and they can’t agree on a language - you think they’ll agree on money?

Euro was the 3rd time a reserve currency was tried in Europe. Germany was having no part of helping Greece out almost a decade before Brexit was a thing.

US isn’t the perfect option, but it’s the best one in foreseeable future.

 

[FSF]

That's not what I'm saying at all...I'm saying the opposite. The central bank is flooding dollars out the door, they can't keep this up much longer. The Fed will have to begin to raise interest rates and when they do...POP! goes some bubbles!

My job at the Economic Firm I was at based a lot of the material and built an ETF that if were correct—I’d be very, very wealthy now. We even rang opening bell of NYSE in 2009 on that.

The ETF was closed in 2012 and I—being the Program Manager of it, was out of a job 2 months later. The company itself was sold by the end of the year.

I agree with you fundamentally about the bubbles popping. But damn it’s been 10 years. It defies logic, we underestimated the impact of the Fed. QE1 and then how QE2 kept going with diminishing returns.

A lot of the data used to be freely available (Money Supply-M3, etc) and it’s not anymore. Having access to $10K a year services was helpful in seeing how insane it was, so I cant speak to as much now as then. Though I can make very educated guess:

As a large stroke—Millenials are entering the workforce making more $ than any generation before it. New technologies advanced so rapidly in the last 10 years that the skills to needed to sustain growth changed the whole dynamic. No one entered the workforce making $70K and up, it was a gradual process for decades. As such, consumer spending—the real driver of the economy—grew faster than anticipated. Baby Boomers are net savers and Gen X—well, Gen X was never large enough to be marketed to or matter in the grand scheme.

Still....the Fed interest rates, Housing boom, etc. it’s unsustainable.... but this pushing of Stimulus money and creation of money.... it’s like a drug addiction. At some point you need more & more to get less and less of the high & chase the dragon.

I just don’t know when?

 

[FSF]

But, I would suggest that you look to move away from anything that has to do with the dollar. If you haven't read about what the IMF has done with Special Drawing Rights (SDRs), basically creating a new FIAT currency out of thin air as to keep lending...You need to read into it. Scary times ahead.

I agree with you on moving $ into commodities. I’ve already posted on here the why — but the value will go up as those prices go up. A lot of individuals got wealthy from that... a stick of butter cost the same to a wealthy vs. poor family—but if I’m invested in the butter commodities I’m a net winner.

SDRs that you are reading about- old news: https://www.reuters.com/article/financial-china-currency-idUSSP46490320090330

Porter Stansberry was scaring people into that BS 10+ years ago and still doing it now. He (and others like him) play on your fears and feed you technically factual (but infinitesimally unlikely) information that is just enough for people to buy their products. He had a terrifying video called The End of America in 2010-11 that made him very wealthy as it hit on the general panic that set in.

Oh did he ever lay into SDRs — which have been around since 1970s FYI. Whatever you read, it’s more likely that a Martian Invasion will happen than SDRs being a thing. But—technically real, I can say it could happen.

SEC already came after him for Fraud and he’s skirted getting into real trouble for decades. He’s got another Bitcoin scam going on now, but he’s so influential & manipulative that people buy into it.

This results in others copycatting and trying same. He wasn’t only one to con people into buying the Brooklyn Bridge during the Great Recession and he isn’t the only one now.

Bitcoin: Its strength is also its weakness. It’s unregulated— so just who is controlling the value of it? How much of it is out there? Companies have re-purchased their own stock for decades to decrease the supply and inflate the price: but it’s transparent and can be a sound strategy. Bitcoin is a risk and can pay off big, but the opposite is true.

 

[Steeltime]

Don’t know how old you are, but China has been pushing for change in Reserve Currency since we were playing with action figures.

Oh, you mean back when the United States ran deficits of maybe $5 - $10 billion, a tiny fraction of GDP, and had a total of about $750 billion in debt, and China's economy was a sliver compared to the American economy and was basically absent on the world stage in terms of economic investment?

Back then you mean? Good that things don't change.

The British pound was the world currency until Bretton Woods in 1944. The dollar became the world currency for obvious reasons, i.e., this nation was the largest economy on earth by far and booming, had an intact production base, stable government, an economy that was sustainable and growing, manageable national spending and debt.

Now, this nation has an economy that will fall below China's in the next 5 years, with massive underlying problems in terms of debt, poor infrastructure (I mean real infrastructure, not daycare), government largesse that is bankrupting the nation, the loss of an economy based in significant part on production rather than ephemeral products, and an exploding impoverished class fed by massive and uncontrolled immigration. Our political structure is becoming a joke.

You act as if the dollar will not lose its place despite these facts. It's not a matter of if, it's a question of when. I think much sooner than we suspect and perhaps even earlier than I fear.

 

[FSF]

Oh, you mean back when the United States ran deficits of maybe $5 - $10 billion, a tiny fraction of GDP, and had a total of about $750 billion in debt, and China's economy was a sliver compared to the American economy and was basically absent on the world stage in terms of economic investment?

Back then you mean? Good that things don't change.

The British pound was the world currency until Bretton Woods in 1944. The dollar became the world currency for obvious reasons, i.e., this nation was the largest economy on earth by far and booming, had an intact production base, stable government, an economy that was sustainable and growing, manageable national spending and debt.

Now, this nation has an economy that will fall below China's in the next 5 years, with massive underlying problems in terms of debt, poor infrastructure (I mean real infrastructure, not daycare), government largesse that is bankrupting the nation, the loss of an economy based in significant part on production rather than ephemeral products, and an exploding impoverished class fed by massive and uncontrolled immigration. Our political structure is becoming a joke.

You act as if the dollar will not lose its place despite these facts. It's not a matter of if, it's a question of when. I think much sooner than we suspect and perhaps even earlier than I fear.

Firstly, drop the hostility please. Note the word WE when talking about how old? And I am in agreement with you about many of your points.

Really, China's desire to replace us as Reserve Currency got it's push when we went to Fiat currency under Nixon. Although arguably we'd been off the Gold Standard since FDR. But the "We're all Keynesians now" began in the early 1970s.

I never said the dollar will not lose it's place. I've said I don't know how long we'll be the reserve currency - and it will not be forever - it sure as heck won't be China.

If you think China has zero problems, you're very mistaken. That one-child policy they had in effect for years? Yeah, the one that has a massive disproportionate male to female population that can only lead to the same problem that exists throughout Europe. Demographically they are in a bad place and economies are ultimately driven by consumer spending - and a huge proportion of that is the cost of children. Ain't gonna be that many in China for the next 20-30 years. Internally, China's economy is inevitably going to go down and stay down. They are extremely reliant on exporting.

The known currency manipulator China is never going to be the reserve currency for the world - they can spend like crazy on importing materials for infrastructure - but there is a lot of question about what was done. Empty buildings, roads, bridges not being used. They are not remotely close to transparent. Yeah, they are reporting record GDP growth -- after suffering through their worst economic decline in decades. And GDP calculation is not exactly an accurate or consistent number. Every single Presidential Administration calculates GDP different in the U.S. -- what the heck do you think would be reported from a communist regime? Sure as hell fire not the facts.

What do they do? Keep millions in poverty and pay pennies on the dollar to big tech firms so they could have large profit margins. They were not pleased (okay pissed off) with tariffs under the Trump years (Section 301 was overdue and to anyone who ******* about it I still say F.U.) -- they have a ton of labor and manufacturing workers and the fact that for once they couldn't exploit their own population -- and it actually pissed people off in the U.S.? That is something I can never understand. At least India hates their guts and that is a border to watch. You know China wants to take back control of Taiwan -- that would be the end times right there.

Not denying China has power on the world stage, but a China takeover is not imminent. I wish people would take what China does more seriously though. The world turns a blind eye as they commit genocide against the Uyghurs Muslims? We have people crying about "identifying" with a gender while they slaughter their own people and do not give a damn about their own hypocrisy. They are not a free market economy, they are

I'm a strong advocate of boycotting the Olympics, they have no business hosting an international event when they are responsible for bringing the world down -- but they sure do grease the pockets of those who can influence and are f'n just stupid.

 

[Badcat]

I agree with you on moving $ into commodities. I’ve already posted on here the why — but the value will go up as those prices go up. A lot of individuals got wealthy from that... a stick of butter cost the same to a wealthy vs. poor family—but if I’m invested in the butter commodities I’m a net winner.

SDRs that you are reading about- old news: https://www.reuters.com/article/financial-china-currency-idUSSP46490320090330

Porter Stansberry was scaring people into that BS 10+ years ago and still doing it now. He (and others like him) play on your fears and feed you technically factual (but infinitesimally unlikely) information that is just enough for people to buy their products. He had a terrifying video called The End of America in 2010-11 that made him very wealthy as it hit on the general panic that set in.

Oh did he ever lay into SDRs — which have been around since 1970s FYI. Whatever you read, it’s more likely that a Martian Invasion will happen than SDRs being a thing. But—technically real, I can say it could happen.

SEC already came after him for Fraud and he’s skirted getting into real trouble for decades. He’s got another Bitcoin scam going on now, but he’s so influential & manipulative that people buy into it.

This results in others copycatting and trying same. He wasn’t only one to con people into buying the Brooklyn Bridge during the Great Recession and he isn’t the only one now.

Bitcoin: Its strength is also its weakness. It’s unregulated— so just who is controlling the value of it? How much of it is out there? Companies have re-purchased their own stock for decades to decrease the supply and inflate the price: but it’s transparent and can be a sound strategy. Bitcoin is a risk and can pay off big, but the opposite is true.

Thank you for your replies, Very informational. I wasn't getting my info from Stransberry, I know who and what he is. I didn't really expound on my china comment but I dont believe that China will ever get the yuan as a standard and I agree with your reasoning on why that is, but I do believe the IMF could play in role generating a new global fiat currency, go back to a gold standard to back currency (providing trust form G7 countries), and move off of the dollar standard. I know, it's a long shot, but the way the US Treasury is printing money and the US is racking up debt with foreign countries buying it up...the dollar is at risk. IMO.

The IMF created the SDR in 1969, I knew about it and understand the premise. But, the SDR's I was referring to were this --> https://www.bloomberg.com/news/arti...n-to-issue-as-much-as-650-billion-in-reserves

That **** (sorry but she pisses me off)Yellen has no business being the US Treasury Secretary. None.

 

[Steeltime]

FSF, the problem is that China is bullying Europe into becoming their toadies. China has also spent tens of billions on infrastructure in Africa and they now have an almost unique access to rare minerals in that continent absolutely necessary to today's technological developments (florite, zircon, etc.), such as cell phones, flat screen TVs, electric cars, airplane turbines. Most of those minerals now come from China.

So China controls the resources needed for a vast array of **** we depend on, and controls the other source for such minerals. China also is not hindered by environmental restrictions like the developed world. So when China has a stranglehold on rare earth minerals, manufacturing, exports and available capital, it will dictate the terms of the monetary policy.

God bless your belief that the developed world will not allow a totalitarian regime to control the world currency. I don't. share that optimism As long as they make a bunch more money, the powerful will not care what happens in China. They don't today - China engages in fraudulent trade deals, corporate theft, lying, currency manipulation, and is punished how exactly?

Yeah, thought so.