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  • Inflation caused by govt spending not Democrat excuses

    Well some of us already knew this….others want to pretend.

    But now researchers at the Federal Reserve Bank of San Francisco are weighing in on the topic – and they say that massive government spending during the coronavirus pandemic has caused U.S. inflation to surge more than in other developed economies.

    "Fiscal support measures designed to counteract the severity of the pandemic’s economic effect may have contributed to this divergence by raising inflation about 3 percentage points by the end of 2021," wrote Òscar Jordà, Celeste Liu, Fernanda Nechio and Fabián Rivera-Reyes in the San Francisco Fed's weekly Economic Letter.

    Core inflation, which strips out the more volatile measurements of food and energy, started 2021 below 2% on an annual basis and ended the year above 5%, the highest rate in decades. By comparison, inflation among countries in the Organization for Economic Cooperation and Development countries rose at a more gradual pace.




    this isn’t just spending in Biden era. Trump(whos far too liberal for me) spending in 2020 such as the CARES act and PPP act contributed to this mess too. Far too much spending. It was ALWAYS a horrendous mistake to just give out free money to everyone, when a lot of people were still working and didn’t need it.


    Biden on the other hand had no plan for it and just contributed more spending that balloooned it even more.


    the govt are nothing but politician elites who can’t wipe their own ass let alone run a country…not one govt entity works smoothly. Not one. Lockdowns should’ve never happened as long as they did. Abundant spending targeting people who didn’t need it Shouldve never happened. US failed and is still failing in its response over 2 presidents.

  • #2
    I agree. Billion dollar deficits even before the pandemic. Then everything that was done to try to weather COVID. The bill for all that is now coming due. Interest rates have been too low for too long. Then the war in Ukraine and global sanctions against Russia (for how long?) are going to make things worse. i think we’re about to head into a huge recession and market correction - it’s long overdue IMHO. Politicians of all stripes love cutting taxes and spending more, but they never have the balls to do the opposite of that, which is what would be needed to actually address the deficit. 🤷🏼‍♂️

    Comment


    • #3
      Originally posted by Mile High Salute View Post
      I agree. Billion dollar deficits even before the pandemic. Then everything that was done to try to weather COVID. The bill for all that is now coming due. Interest rates have been too low for too long. Then the war in Ukraine and global sanctions against Russia (for how long?) are going to make things worse. i think we’re about to head into a huge recession and market correction - it’s long overdue IMHO. Politicians of all stripes love cutting taxes and spending more, but they never have the balls to do the opposite of that, which is what would be needed to actually address the deficit. 🤷🏼‍♂️
      A friend of mine that makes a quarter million per year was getting stimulus checks and while he was miffed about it, he still used the money. I am like dude...you don't need that money. Tell them to stop, plus he's just going to have to pay it back anyway.

      Comment


      • #4
        Originally posted by Mile High Salute View Post
        I agree. Billion dollar deficits even before the pandemic. Then everything that was done to try to weather COVID. The bill for all that is now coming due. Interest rates have been too low for too long. Then the war in Ukraine and global sanctions against Russia (for how long?) are going to make things worse. i think we’re about to head into a huge recession and market correction - it’s long overdue IMHO. Politicians of all stripes love cutting taxes and spending more, but they never have the balls to do the opposite of that, which is what would be needed to actually address the deficit. 🤷🏼‍♂️
        Trillion dollar deficits. The combination of tax cuts, unfunded wars for 20 years, medical cost explosion and general social need is a unfortunate mix.

        Imagine if we hadn't cut taxes when it wasn't really needed...
        Imagine if we had taxed Americans to pay for our 2, 20 wars...
        Imagine if we addressed healthcare costs, and the abysmal health of Americans who consume massive healthcare resources....
        Imagine if we didn't put policies in place to have massive wealth disparity, and more and more Americans weren't dependent on Government programs..

        A global pandemic was a good example of where Government should be able to borrow/ spend heavily to get the Nation through an unprecendented crisis... instead, we've borrowed for forty years for things that should have been covered in taxes, tax increases or spending reductions.

        In the end, you pay a price for recklessness- inflation and high prices is just that. Pay now, or Pay Later...

        Comment


        • #5
          Originally posted by Garcia Bronco View Post

          A friend of mine that makes a quarter million per year was getting stimulus checks and while he was miffed about it, he still used the money. I am like dude...you don't need that money. Tell them to stop, plus he's just going to have to pay it back anyway.
          that seems odd- we don't make that much and we were phased out...

          Comment


          • #6
            And yet, Warren Buffett just announced $40 billion in profits in the last quarter. Amazon's profit went up by over $100 billion last year. Oil industry profits soared to $174 billion.

            I'll bet those shareholders are very pleased with the running of the country. Hopefully, they can get Trump back in office and pass another massive tax break!

            U.S. is "failing?" Depends who you ask.
            Last edited by Roh; 03-30-2022, 12:27 PM.

            Comment


            • #7
              Originally posted by B-Large View Post

              Trillion dollar deficits. The combination of tax cuts, unfunded wars for 20 years, medical cost explosion and general social need is a unfortunate mix.

              Imagine if we hadn't cut taxes when it wasn't really needed...
              Imagine if we had taxed Americans to pay for our 2, 20 wars...
              Imagine if we addressed healthcare costs, and the abysmal health of Americans who consume massive healthcare resources....
              Imagine if we didn't put policies in place to have massive wealth disparity, and more and more Americans weren't dependent on Government programs..

              A global pandemic was a good example of where Government should be able to borrow/ spend heavily to get the Nation through an unprecendented crisis... instead, we've borrowed for forty years for things that should have been covered in taxes, tax increases or spending reductions.

              In the end, you pay a price for recklessness- inflation and high prices is just that. Pay now, or Pay Later...
              ^
              This. The booming economy was squandered under Trump to give tax breaks to millionaires and billionaires who didn’t need them. Of course, hindsight is 20/20, and no one knew that COVID and Ukraine were going to happen. But when times are good is the time to get the budget in order, not during a crisis. 🤦‍♂️ Instead, the US was like the family who maxes out their credit card buying frivolous stuff, then has nothing in reserve when an actual emergency happens. Not good!!!

              Comment


              • #8
                Originally posted by Garcia Bronco View Post

                A friend of mine that makes a quarter million per year was getting stimulus checks and while he was miffed about it, he still used the money. I am like dude...you don't need that money. Tell them to stop, plus he's just going to have to pay it back anyway.
                I started getting child tax credit payments out of nowhere last summer. Just showed up in my bank account. I was like, “thanks, I guess?” 🤷🏼‍♂️ Totally didn’t need the money. An absolute waste to just indiscriminately send that out to everyone.

                Comment


                • #9
                  Originally posted by Roh View Post
                  And yet, Warren Buffett just announced $4 billion in profits in the last quarter. Amazon's profit went up by over $100 billion last year. Oil industry profits soared to $174 billion.

                  I'll bet those shareholders are very pleased with the running of the country. Hopefully, they can get Trump back in office and pass another massive tax break!

                  U.S. is "failing?" Depends who you ask.

                  If you bought a home circa 2007/2008 and have decent amount of money in the stock market at that time as well- you're probably feeling pretty good about the way things are going...

                  if you in your late 20's/ early 30's, probably a different, lukewarm outlook...

                  If you're not a highly educated professional and have no position in equities, its probably bleak...

                  Comment


                  • #10
                    Originally posted by Mile High Salute View Post

                    ^
                    This. The booming economy was squandered under Trump to give tax breaks to millionaires and billionaires who didn’t need them. Of course, hindsight is 20/20, and no one knew that COVID and Ukraine were going to happen. But when times are good is the time to get the budget in order, not during a crisis. 🤦‍♂️ Instead, the US was like the family who maxes out their credit card buying frivolous stuff, then has nothing in reserve when an actual emergency happens. Not good!!!
                    did you notice nobody, whether democrat nor republican even mentioned deficits and debt anymore? The two concepts have become nearly meaningless in our society. 20 years ago the GOP went on and on about them.... nowadays barely even a peep.

                    The US is screwed. Prepare yourself, if you can, to have options Internationally...

                    Hard to watch!

                    Comment


                    • #11
                      Originally posted by Mile High Salute View Post

                      I started getting child tax credit payments out of nowhere last summer. Just showed up in my bank account. I was like, “thanks, I guess?” 🤷🏼‍♂️ Totally didn’t need the money. An absolute waste to just indiscriminately send that out to everyone.
                      I only like child tax credits that are dolled out indiscrimintely....

                      Comment


                      • Mile High Salute
                        Mile High Salute commented
                        Editing a comment
                        As long as the “indiscriminately” includes me 😉

                    • #12
                      Originally posted by B-Large View Post

                      did you notice nobody, whether democrat nor republican even mentioned deficits and debt anymore? The two concepts have become nearly meaningless in our society. 20 years ago the GOP went on and on about them.... nowadays barely even a peep.

                      The US is screwed. Prepare yourself, if you can, to have options Internationally...

                      Hard to watch!
                      If the U.S. goes, the world goes with it.

                      Circa 1922, Germany (kids playing with stacks of Deutsche marks)

                      Click image for larger version

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                      Comment


                      • #13
                        Originally posted by B-Large View Post

                        did you notice nobody, whether democrat nor republican even mentioned deficits and debt anymore? The two concepts have become nearly meaningless in our society. 20 years ago the GOP went on and on about them.... nowadays barely even a peep.

                        The US is screwed. Prepare yourself, if you can, to have options Internationally...

                        Hard to watch!
                        Democrats almost never care about the deficit, and Republicans only pretend to care when a Democrat is in office. Neither side wants to cut spending or raise taxes because those are unpopular. (And when I talk about cutting spending, I’m not talking about “discretionary spending”, i.e., the tiny slice of the fiscal pie they always go after. They need to go after the three big elephants in the room - defense, medicare, and social security.)

                        Unfortunately, most politicians’ primary goals seem to be enriching themselves and staying in power, so as a result, nothing meaningful ever gets done. The entire system is rotten to the core.

                        Comment


                        • #14
                          Originally posted by Roh View Post

                          If the U.S. goes, the world goes with it.

                          Circa 1922, Germany (kids playing with stacks of Deutsche marks)

                          Click image for larger version

Name:	XKK0-8xMi3Q1fd43mfoBr0VuIX6XVRTZMVUbGnoou8w.jpg?auto=webp&s=913b9912910853489b01a046198fca00980cc505.jpg
Views:	14
Size:	63.8 KB
ID:	72735
                          yep, we will drag pretty much everybody down with us.... but the ambivalent attitude is shocking.... we don't even pretend anymore

                          Comment


                          • #15
                            Originally posted by Mile High Salute View Post

                            Democrats almost never care about the deficit, and Republicans only pretend to care when a Democrat is in office. Neither side wants to cut spending or raise taxes because those are unpopular. (And when I talk about cutting spending, I’m not talking about “discretionary spending”, i.e., the tiny slice of the fiscal pie they always go after. They need to go after the three big elephants in the room - defense, medicare, and social security.)

                            Unfortunately, most politicians’ primary goals seem to be enriching themselves and staying in power, so as a result, nothing meaningful ever gets done. The entire system is rotten to the core.
                            Massive campaign finance reform is the critical need. Unfortunately, we are in the position of asking the pigs to move away from the trough voluntarily. Not likely.

                            Comment


                            • #16
                              Originally posted by Mile High Salute View Post

                              Democrats almost never care about the deficit, and Republicans only pretend to care when a Democrat is in office. Neither side wants to cut spending or raise taxes because those are unpopular. (And when I talk about cutting spending, I’m not talking about “discretionary spending”, i.e., the tiny slice of the fiscal pie they always go after. They need to go after the three big elephants in the room - defense, medicare, and social security.)

                              Unfortunately, most politicians’ primary goals seem to be enriching themselves and staying in power, so as a result, nothing meaningful ever gets done. The entire system is rotten to the core.
                              I think Obama/ Boehner we're kind of our last chance.... hard to believe they were evening talking about that no more than 10 years ago... seems like ancient history!

                              Comment


                              • #17
                                Originally posted by Roh View Post

                                Massive campaign finance reform is the critical need. Unfortunately, we are in the position of asking the pigs to move away from the trough voluntarily. Not likely.
                                I assume most empires watched in slow motion knowing the problems/ fixes, and were still unable to do anything about it...

                                Comment


                                • #18
                                  Originally posted by B-Large View Post

                                  yep, we will drag pretty much everybody down with us.... but the ambivalent attitude is shocking.... we don't even pretend anymore
                                  I think that is because the system is out of control, almost nobody understands what is going on (from technology, to derivatives, to NFT, to crypto, economics, etc etc etc), we've been hit with a crash (in 2008), the devaluation of labor (an existential threat to many), the presidency of a self-obsessed lunatic, a pandemic, and now the beginning of WWIII, a teetering economy, climate change disasters year after year, etc etc etc. Humanity is suffering from PTSD.

                                  Comment


                                  • #19
                                    Originally posted by B-Large View Post

                                    I assume most empires watched in slow motion knowing the problems/ fixes, and were still unable to do anything about it...
                                    Yep. We've created a Gordian Knot of unfixable proportions. Any string you pull is connected to another and the entire structure is corrupt. It's impenetrable.

                                    Time for the Alexandrian solution. 😊

                                    Comment


                                    • #20
                                      Originally posted by Roh View Post

                                      Massive campaign finance reform is the critical need. Unfortunately, we are in the position of asking the pigs to move away from the trough voluntarily. Not likely.
                                      I think that battle is basically over. With a conservative court, Citizens United is here to stay. The US is really nothing but a corporate oligarchy anymore.

                                      Comment


                                      • #21
                                        Originally posted by B-Large View Post

                                        I think Obama/ Boehner we're kind of our last chance.... hard to believe they were evening talking about that no more than 10 years ago... seems like ancient history!
                                        They were close to striking that “Grand Bargain”, but the inertial forces were just too powerful on both sides of the aisle. The sides just retreat to their respective bunkers, keep fighting and bickering in permanent campaign mode, and nothing ever gets done for the American people. Sad.

                                        Comment


                                        • #22
                                          Originally posted by B-Large View Post

                                          I assume most empires watched in slow motion knowing the problems/ fixes, and were still unable to do anything about it...
                                          I only like empires that crumble in slow motion while everyone watches. 👍🏻

                                          Comment


                                          • #23
                                            Something important to keep in mind regarding this study suggesting that fiscal support measures in the U.S. contributed to inflation here:

                                            The United States is experiencing higher rates of inflation than other advanced economies. In this Economic Letter we argue that, among other reasons explored by the literature, the sizable fiscal support measures aimed at counteracting the economic collapse due to the COVID-19 pandemic could explain about 3 percentage points of the recent rise in inflation. However, without these spending measures, the economy might have tipped into outright deflation and slower economic growth, the consequences of which would have been harder to manage.

                                            https://www.frbsf.org/economic-resea...her-countries/

                                            Comment


                                            • #24
                                              Originally posted by Roh View Post

                                              I think that is because the system is out of control, almost nobody understands what is going on (from technology, to derivatives, to NFT, to crypto, economics, etc etc etc), we've been hit with a crash (in 2008), the devaluation of labor (an existential threat to many), the presidency of a self-obsessed lunatic, a pandemic, and now the beginning of WWIII, a teetering economy, climate change disasters year after year, etc etc etc. Humanity is suffering from PTSD.
                                              I read an article about how nuts this is making everybody. It’s just been one crisis after another lately.

                                              https://apple.news/Ap6iIjUkTTl6C457J5-BGUw

                                              Comment


                                              • #25
                                                Originally posted by Mozzafiato View Post
                                                Something important to keep in mind regarding this study suggesting that fiscal support measures in the U.S. contributed to inflation here:

                                                The United States is experiencing higher rates of inflation than other advanced economies. In this Economic Letter we argue that, among other reasons explored by the literature, the sizable fiscal support measures aimed at counteracting the economic collapse due to the COVID-19 pandemic could explain about 3 percentage points of the recent rise in inflation. However, without these spending measures, the economy might have tipped into outright deflation and slower economic growth, the consequences of which would have been harder to manage.

                                                https://www.frbsf.org/economic-resea...her-countries/
                                                Oh yeah, they basically had to. COVID would’ve wrecked the economy otherwise. But we were caught flat-footed, and soon the chickens will be coming home to roost. Couldn’t kick the can down the road forever.

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