Inflation

[agstar77]

Well who would have thought rising prices would cause inflation. All those operating loans may get more expensive. Just perfect.

[Grahamp]

Not looking for an argument but all this week I have been reading the kids the book “Whatever Happened to Penny Candy.” Rising prices don’t cause inflation. Inflation causes rising prices.

I am a glass half full, optimistic, world getting better kind of guy but reading this simple kids book has reminded me that we are in for a world of hurt. Everyone. Too bad it didn’t have to be this way. Like communism every single real world example of inflating a currency has failed but we thought it would be different for us because we are special. We are not special. We are very unspecial.

[agstar77]

The cause does not matter. Will interest rates rise?

[burnt]

Not looking for an argument but all this week I have been reading the kids the book “Whatever Happened to Penny Candy.” Rising prices don’t cause inflation. Inflation causes rising prices.

I am a glass half full, optimistic, world getting better kind of guy but reading this simple kids book has reminded me that we are in for a world of hurt. Everyone. Too bad it didn’t have to be this way. Like communism every single real world example of inflating a currency has failed but we thought it would be different for us because we are special. We are not special. We are very unspecial.

While you are reading Riichard Maybury, you would find his 'Whatever Happened to Justice?" a very good read as well.

It shows where our system went badly off the rails. When you trade "justice" for "legal", you're done. And it wasn't by accident, either.

[burnt]

"The cause does not matter." - why does that reply not surprise me, considering the source?

What an incredibly well thought out response. Consistency is usually considered a virtue, but significantly less so when pounding the wrong path.

[dalek]

It’s just starting. At my favourite building supply store they were told this morning by their flooring supplier that his cost per container for shipping is going to be $20-21,000 by fall up from $3,000 this past winter

[blackpowder]

Locking in rates here.

[Sodbuster]

The right thing to do is to start hiking rates, but I doubt that the government has the guts to do it. I might be wrong but the longer we go down this road the worse it’s going to be.

[errolanderson]

Any rate hike threatens a market crash. It also gives investors serious pause that the gravy train is over.

Inflation has the shelf-life of the remaining life of a grossly manipulated stock market. Should equities drop, asset deflation takes hold. The warm-up act is the recent collapse in lumber. Commodities have come under increased selling pressure this summer.

Any sustained drop in equities and investors will stampede out of their long positions en mass. This is not ‘if’ this is ‘when’ (IMO). Then we will all hear the chant of buy the dip, recently heard in cryptos.

The housing market is now a crash waiting to happen, let alone hike rates. Central banks can’t raise rates. If they could, they would . . . but the gig is up.

[jazz]

errol, I think you are missing the next stage for the CBs, digital currency, defacto negative rates and cash dolled out directly to consumers to spend with a time limit on it.

They just tried that very experiment in china.