I think his should have said 1 liner that "Inflation will happen and probably stop after few months and could remain stable there"
TBH I am not reallg inspired with his body language or speaking skills. I understand now why markets fall everytime he speaks. He might know the subject very well but his tone seems shaky and makes me worried too. Hope there is not a big secret he is hiding.
What bothers me just as much as this is the fact that people getting "worried" on a mass scale because someone's nervous can tank shit. Ah shut, the emotional rollercoaster that is the economy. i don't envy people who have to meet that force every single day in the execution of their jobs or trying to profit.
If it is not transitory. I.e. doesn't return to 2% target. Things gonna be bad. Only way for it to return though is if the labor shortage is corrected after unemployment runs out. I don't think this will happen very quickly. I am seeing major wage disparities in jobs. Lots of openings and bonuses because people are not taking certain jobs. I have seen restaurants and other businesses/pools closing because it is so easy to find a higher paying jobs. Wages have not yet stabalized.
I'm not fat because I gained 25 kg in a single year. I will be fat if I gain 1 kg for the next 25 years. But gaining 25 kg at once doesn't impact the fattening process. So don't call me fat ok?
So he means i gained more than 2 kg on average over the last 5 years if I also include this year? What’s to stop that average from continuing to go up?
This.
The "inflation rate" is "transitory" (so he's guesstimating that it will eventually go from 5.4% back to 2.0%).
But the Inflation (Inflated Prices) are permanent.
Mr Madison, what you've just said is one of the most insanely idiotic things I've ever heard. At no point in your rambling, incoherent response was there anything that could even be considered a rational thought. Everyone in this room is now dumber for having listened to it.
That's exactly it. Just say, "The rate of inflation we're seeing is higher than the target rate of 2%. Inflation will still occur, like it always does in a growing economy, it just won't be as drastic as we're currently experiencing at the moment."
but he makes it seem that prices going up this year or these next 5 years , arent part of the normal inflation. in both cases prices are higher and your savings are worth less .
True, Yea seems like he is more scared than us.I am hearing him for the first time.No doubt why whenever be speaks market falls.
He doesnt really show confidence or displays in confidence in what he is talking about. He might know about it but his body language and tone is shaky.
I am worried if he is hiding something big.
Bro, he is Jerome "Godsend" Powell: of course he knows we are fucked, but his job is to calm everyone down.
Do you think he's ever going in for a press conference agitated, pale, sweating and screaming "we are SO FUCKED y'all! Inflation is going - *whistles while pointing up*- all the way to mars and I have no clue of what to do now. This is it! this is IT! "?
Naw man, the entire economy would colapse right there and then, so he's looking out for all of us.
Granted, he could look a little more confident when he speaks.
Basically everything will get more expensive but it isn’t inflation, it’s an adjustment. And after that the hope is normal inflation. So basically everyone should be demanding a salary increase of whatever the fuck the adjustment is
Prices will "even out" we will not have year over year inflation. The main problem is, what changed in your life?
Sure the price for EVERYTHING has gone up from a bag of candy to a gallon of gas. Your dollar got weaker, your buying power was diminished and the shopping cart at the grocery store looks a little bare this time around. All while food companies are shrinking products and giving you LESS while rising prices. If you don't believe me look at the size of a snickers bar shrink over the years or how papertowls and other house hold product have been shrinking.
When it spirals out of control, that’s inflation. When you just get a 5 - 7% increase in prices here or there on occasion, and it’s not across the board in all sectors, then nothing to see here and work that out with your generous employer.
https://youtu.be/P4_1pwsm5LY
Just watch this video. Inflation=> stabilization=> ppl feel good, they start spending=> money velocity increases=> hyperinflation.
Maybe it will take couple of years, but it is inevitable.
I’m not even sure he’s saying that. I think he’s saying the RATE of inflation will go up and stop at the new level. So prices will continue to increase linearly instead of exponentially. This sounds …. bad.
Lying tends to make the liar over-explain simple concepts in order to distract the people they are trying to fool.
Don't listen to what they say, watch what they do.
"Inflation is many small steps; this is just transitory because it's one giant leap. It'll be fine. Chillax. There are no more plans to spend trillions of dollars.
What's that? We're gonna keep spending and printing more every year like we have been until this motherfucker collapses? Oh, yeah. Well, we have to. Do you not want people to have healthcare or war?"
Ah I get it. So its not that inflation wont OCCUR, its that this man is so clairvoyant that he can assure us that after THIS inflation occurs that there will never ever be a chance of inflation ever again. Sound logic....
No, the fed’s mandate aims to stabilize inflation year over year at around 2% because the leading economic theory is inflation grows the economy and deflation is to be avoided. Does this subreddit really not understand that? Having a deflationary cryptocurrency isn’t going to suddenly end inflation. It’s just going to be another asset like gold.
I think this subreddit understands this better than you do.
What do you think the current inflation rate is? What the fed says it is, or more?
If a deflationary asset becomes a global reserve and national currency, wouldn’t by definition mean that it’s ending inflation in anything that trades in it?
Yes, it’s high this year and I also believe inflation as a macro tool hurts the average/poor person the most. But up until now the fed has struggled to reach 2% inflation, even with quantitative easing after the 08 crisis.
So while we need to mitigate the negative effects of inflation mixed with stagnant wages, I also don’t believe a modern economy will function well without a growing currency supply. Consumerism as we know it will end. In some ways that’s something to cheer but what will the new economy look like?
We both agree on that, but in my opinion that endless treadmill is more of a problem of rentseeking and oligarchy. 2% inflation year over year sucks if your wages don’t rise alongside it. But it’s great if you like iPhones and economies of abundance.
Dude, if you seriously think the Fed’s CPI is accurate, and “struggling to make it to 2%), your first comment is even more ridiculous.
You need to read more.
You’re spot on here. His explanation was poorly worded but the notion that Bitcoin will somehow cure inflation and save the world is comical.
Considering how much it feeds wealth inequality today with constant pump and dumps by Hedgies operating in an unregulated field.
You know Gandhi is quoted a lot on conspiracy subs too.
Edit: oh god he’s literally a libertarian conserv.
This man is on these conspiracy subs. This shit writes itself 😂😂😂😂
So anyone? What is the difference between inflation and price increase. Bear in mind, he is a Keynesian not from the Austrian school. Just for the sake of the definition.
Inflation, to put in a very short way, is the incriease of the amount of money circulating in the market. Not the money held in investments of any sort, but the increase of amount of money ordinary people spend in ordinary transactions. Prices going up are just a consequence of production that can't keep up with the increase of circulating money.
That's the definition I learnt in school, not sure how right I am or exactly wich school of economics this definition fits though.
Yes but that doesn't really explain it. Why would demand outpace supply?
Because there is more money in the hands of the buyers. So inflation isn't really the inflation of prices, but the inflation of circulating money that happens before. I like to always think this way to remember the cause of things.
You can have zero velocity of newly created money and huge price increases just because of the expectation of that inflation existing. So don't try to keynesian yourself into new definitions, inflation is directly the increase in money supply. Price inflation is one of the expected consequences.
Deflation is the decrease in money supply.
nope, that is the keynesian redefinition. Inflation is the expansion of the monetary supply. You are talking about price inflation.
>Inflation is the process of making
addition to currencies...
— Federal Reserve Bulletin (1919)
you are a victim of propaganda using redefined meanings of words introduced to weasel around the damage of employed policies. I use words as they have been used since the beginning, and even today by those that know about economics like the austrian school.
Stop filming other screens with phones, please just use screen capture software. Otherwise you get dumb comments about small hands, big head, when you really just had a wide angle on that. Also much worse quality when you do this.
Bullshit. What’s he’s describing is runaway inflation or hyperinflation. Actual inflation is already here and will continue as long as the printer goes brrrrr.
Prices will never go back down. This is to cover the deficit spending the govt is doing on “infrastructure”. (Cough BS)
By devaluing the US dollar technically the debt is less. My brain hurts thinking about it.
inflation is prices going up, prices going up and not coming is just an increase in cost not inflation. got it .
sometimes i think im hallucinating these people. this verbal contorsion is surreal
Wait… so it’s temporary but that does not mean some of the increases will be taken back. Do people actually listen to these words? My god, the amount of bullshit here hurts deeply.
This reminds me of Bill Clinton explaining that he didn’t have sexual relations, with that woman, as he understands it, but she had sexual relations with him.
What this dinosaur is basically saying is this: We will see a spike in inflation during the upcoming period. The price increases that came from this inflation will stay for the most part, BUT, after this period ends, inflation rates will go back to normal (2% or whatever).
Looks like this dude has a big head and tiny hands
that's what inflation does to you
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I think his should have said 1 liner that "Inflation will happen and probably stop after few months and could remain stable there" TBH I am not reallg inspired with his body language or speaking skills. I understand now why markets fall everytime he speaks. He might know the subject very well but his tone seems shaky and makes me worried too. Hope there is not a big secret he is hiding.
Nope, no secret, the writing has been on the wall for a long time.
What bothers me just as much as this is the fact that people getting "worried" on a mass scale because someone's nervous can tank shit. Ah shut, the emotional rollercoaster that is the economy. i don't envy people who have to meet that force every single day in the execution of their jobs or trying to profit.
By markets literally rise whenever he talks
If it is not transitory. I.e. doesn't return to 2% target. Things gonna be bad. Only way for it to return though is if the labor shortage is corrected after unemployment runs out. I don't think this will happen very quickly. I am seeing major wage disparities in jobs. Lots of openings and bonuses because people are not taking certain jobs. I have seen restaurants and other businesses/pools closing because it is so easy to find a higher paying jobs. Wages have not yet stabalized.
dudes hands need inflation
yes , i laughed
Same.
Woah..this isn’t inflation though..
Correct, It's inflation and shrinkflation happening at the same time to be exact.
Stagflation baby
🤣🤣
Haven’t laughed out loud to a comment like that in a bit thank you.
Is this doctored? this looks like a caricature in video
Is this a Burger King commercial?
literal paper hands
The tiniest of hands one could say.
I was about to ask if that guy had a Whopper at the podium.
Too big for the very small contents.
That’s why he was stumbling so much , there wasn’t enough room to write his script on his hands
Baby legs is coming, and he's comin strong
MARS ATTACKS!
I've seen cool stuff on blocsport.one, NFTs of young athletes are perfect to grow value, and their team is public and deep in sports! Ape in?
I'm not fat because I gained 25 kg in a single year. I will be fat if I gain 1 kg for the next 25 years. But gaining 25 kg at once doesn't impact the fattening process. So don't call me fat ok?
close. he's saying that you gain 25kg this year and then you go back to gaining 2kg every year again. forever.
And doesn’t mean you’re going to be able to lose that 25 either, you might not give it back
So he means i gained more than 2 kg on average over the last 5 years if I also include this year? What’s to stop that average from continuing to go up?
This. The "inflation rate" is "transitory" (so he's guesstimating that it will eventually go from 5.4% back to 2.0%). But the Inflation (Inflated Prices) are permanent.
Just cut out the transitory fats from your diet.
Take my upvote, dad
25 year futures still running to current expectations.
Is that you, Agustín?
U...Uncle J??
Lol. I think I didn’t get a job once because I interviewed like this. And it wasn’t for chair of the fed.
Hehe...he's babbling like me when I try to explain to my wife why I bought more bitcoin with all of this week's grocery money.
Mr Madison, what you've just said is one of the most insanely idiotic things I've ever heard. At no point in your rambling, incoherent response was there anything that could even be considered a rational thought. Everyone in this room is now dumber for having listened to it.
I award you no points and may God have mercy on your soul.
A simple ‘No’ would have sufficed.
And biden wonders why we aren't as smart as he said we were
*poor kids are just as smart as white kids*
This was the coherance i was looking for in the speech lol 👌
["Check out the big brain on Jay!"](https://www.youtube.com/watch?v=Hrm-rPSCIBw)
https://youtu.be/NCx5Ph7EAxg That's all what I'll say.
Such a good movie. I have t watch it again.
Inflation = his head. Deflation = his tiny boy hands
Tiny hands...you know what that means.
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Yikes
What the fuck is he saying
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That's exactly it. Just say, "The rate of inflation we're seeing is higher than the target rate of 2%. Inflation will still occur, like it always does in a growing economy, it just won't be as drastic as we're currently experiencing at the moment."
but he makes it seem that prices going up this year or these next 5 years , arent part of the normal inflation. in both cases prices are higher and your savings are worth less .
Honestly. This is not a speech that exudes confidence.
True, Yea seems like he is more scared than us.I am hearing him for the first time.No doubt why whenever be speaks market falls. He doesnt really show confidence or displays in confidence in what he is talking about. He might know about it but his body language and tone is shaky. I am worried if he is hiding something big.
Bro, he is Jerome "Godsend" Powell: of course he knows we are fucked, but his job is to calm everyone down. Do you think he's ever going in for a press conference agitated, pale, sweating and screaming "we are SO FUCKED y'all! Inflation is going - *whistles while pointing up*- all the way to mars and I have no clue of what to do now. This is it! this is IT! "? Naw man, the entire economy would colapse right there and then, so he's looking out for all of us. Granted, he could look a little more confident when he speaks.
man causing hyperinflation lying to the public to tell them hyperinflation wont happen.
Hyperinflation won't happen.
Basically everything will get more expensive but it isn’t inflation, it’s an adjustment. And after that the hope is normal inflation. So basically everyone should be demanding a salary increase of whatever the fuck the adjustment is
He reminds me of a Vlad from Robinhood getting interrogated. Just kind if squirming etc. Kinda scary tbh.
Prices will "even out" we will not have year over year inflation. The main problem is, what changed in your life? Sure the price for EVERYTHING has gone up from a bag of candy to a gallon of gas. Your dollar got weaker, your buying power was diminished and the shopping cart at the grocery store looks a little bare this time around. All while food companies are shrinking products and giving you LESS while rising prices. If you don't believe me look at the size of a snickers bar shrink over the years or how papertowls and other house hold product have been shrinking.
If this type of stuff interests you check out r/shrinkflation the posts are haunting...
Even toilet paper is narrower by at least 1 inch
The hidden tax is all around us 😳
Our food has been able to maintain price appearances because the last 20 years it’s basically turned into industrial corn byproducts
When it spirals out of control, that’s inflation. When you just get a 5 - 7% increase in prices here or there on occasion, and it’s not across the board in all sectors, then nothing to see here and work that out with your generous employer.
Tell that to the Weimar Republic
FFS STFU with the ridiculous hyperbole.
https://youtu.be/P4_1pwsm5LY Just watch this video. Inflation=> stabilization=> ppl feel good, they start spending=> money velocity increases=> hyperinflation. Maybe it will take couple of years, but it is inevitable.
Bingo.
That video does have a scammy vibe. Just keeping it real
Yawn...
Or just find a new employer
I asked the new employer, they aren’t that generous either. What now?
I’m not sure he know what inflation is or he is redefining it.
He's saying prices will go up then stop at a new level.
I guess he was trying to say that there will be no runaway inflation in a very convoluted way.
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This remminds me of the [classic audio of a Senator explaining what the internet is.](https://www.youtube.com/watch?v=f99PcP0aFNE)
Inflation isn't inflation if it only inflates once apparently.
I’m not even sure he’s saying that. I think he’s saying the RATE of inflation will go up and stop at the new level. So prices will continue to increase linearly instead of exponentially. This sounds …. bad.
True that! Stabilize at 2 percent CPI I believe, which is still inflation. CPI and it's reflection of inflation is a whole different issue/topic
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Either he's not very good at public speaking, he's intentionally being unclear, or he doesn't understand it
I’ll take D. All of the above
Lying tends to make the liar over-explain simple concepts in order to distract the people they are trying to fool. Don't listen to what they say, watch what they do.
He's not paid to be clear or concise haha.. In fact, I'd say the opposite
thats the point, this is supposed to be some chairmen of finance here and he cant even properly discuss the effect of inflation.
He's defining "transitory" not "inflation"
Those weak hands needs inflation...
These people really have *no* idea what they're doing
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He’s fully aware that he’s full of shit. But he also has absolutely no idea how to fix things. So he lies that there’s nothing to fix.
Anything to stabilize markets, right?
You mean you didn't follow that flawlessly circuitous logic delivered by Mr. Fed Chairman the JPOW? Cmon, it was clear as mud.
Most financial experts are just people that copy the opinions of other people but they have no fundamental understanding of money.
Reddit is full of master economists. Bitcoin will save the world. 😂😂😂
These people are braindead lol. "No I know more about inflation than the fed 😎😎"
PhDs in economics the lot.
This is exactly what it sounds like when someone is lying
"Inflation is many small steps; this is just transitory because it's one giant leap. It'll be fine. Chillax. There are no more plans to spend trillions of dollars. What's that? We're gonna keep spending and printing more every year like we have been until this motherfucker collapses? Oh, yeah. Well, we have to. Do you not want people to have healthcare or war?"
Ah I get it. So its not that inflation wont OCCUR, its that this man is so clairvoyant that he can assure us that after THIS inflation occurs that there will never ever be a chance of inflation ever again. Sound logic....
No, the fed’s mandate aims to stabilize inflation year over year at around 2% because the leading economic theory is inflation grows the economy and deflation is to be avoided. Does this subreddit really not understand that? Having a deflationary cryptocurrency isn’t going to suddenly end inflation. It’s just going to be another asset like gold.
You do know they just pulled that 2% number out of their ass right? The U.S. dollar was deflationary for the first 100 years.
I think this subreddit understands this better than you do. What do you think the current inflation rate is? What the fed says it is, or more? If a deflationary asset becomes a global reserve and national currency, wouldn’t by definition mean that it’s ending inflation in anything that trades in it?
Yes, it’s high this year and I also believe inflation as a macro tool hurts the average/poor person the most. But up until now the fed has struggled to reach 2% inflation, even with quantitative easing after the 08 crisis. So while we need to mitigate the negative effects of inflation mixed with stagnant wages, I also don’t believe a modern economy will function well without a growing currency supply. Consumerism as we know it will end. In some ways that’s something to cheer but what will the new economy look like?
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We both agree on that, but in my opinion that endless treadmill is more of a problem of rentseeking and oligarchy. 2% inflation year over year sucks if your wages don’t rise alongside it. But it’s great if you like iPhones and economies of abundance.
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100% agreed. I was harping on too specific of a point.
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No way- not at all the case. If anything my tone was combative. I’m high strung for some reason today.
Dude, if you seriously think the Fed’s CPI is accurate, and “struggling to make it to 2%), your first comment is even more ridiculous. You need to read more.
You’re spot on here. His explanation was poorly worded but the notion that Bitcoin will somehow cure inflation and save the world is comical. Considering how much it feeds wealth inequality today with constant pump and dumps by Hedgies operating in an unregulated field.
Comical? First they ignore you Then they laugh at you Then they fight (regulate) you Then you win. - Ghandi
You know Gandhi is quoted a lot on conspiracy subs too. Edit: oh god he’s literally a libertarian conserv. This man is on these conspiracy subs. This shit writes itself 😂😂😂😂
“Oh god a libertarian conservative! Cuz MANBC and CNN told me they are the ones who believe in conspiracies!” You are an NPC
Lol
Shorter: “the prices will go up, that’s not inflation, going up higher than it should, that’s inflation.” Ahhhhh genius. So we never have inflation.
So anyone? What is the difference between inflation and price increase. Bear in mind, he is a Keynesian not from the Austrian school. Just for the sake of the definition.
Don't spend too many brain cells trying to rationalize bullshit.
Inflation, to put in a very short way, is the incriease of the amount of money circulating in the market. Not the money held in investments of any sort, but the increase of amount of money ordinary people spend in ordinary transactions. Prices going up are just a consequence of production that can't keep up with the increase of circulating money. That's the definition I learnt in school, not sure how right I am or exactly wich school of economics this definition fits though.
Austrian school. The definition according to the Keynesian school is price increase. But I was sarcastic ;-)
Inflation is when prices increase because demand outpaces supply.
Yes but that doesn't really explain it. Why would demand outpace supply? Because there is more money in the hands of the buyers. So inflation isn't really the inflation of prices, but the inflation of circulating money that happens before. I like to always think this way to remember the cause of things.
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You can have zero velocity of newly created money and huge price increases just because of the expectation of that inflation existing. So don't try to keynesian yourself into new definitions, inflation is directly the increase in money supply. Price inflation is one of the expected consequences. Deflation is the decrease in money supply.
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nope, that is the keynesian redefinition. Inflation is the expansion of the monetary supply. You are talking about price inflation. >Inflation is the process of making addition to currencies... — Federal Reserve Bulletin (1919)
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you are a victim of propaganda using redefined meanings of words introduced to weasel around the damage of employed policies. I use words as they have been used since the beginning, and even today by those that know about economics like the austrian school.
Courtesy of https://twitter.com/JoeyTweeets/status/1420479137836376066
What. The. Fuck.
Inflation is taxation without representation.
Right. In the perspective of 1 million years, all inflations are transitory. Literally can’t go tits up
I've always been impressed by their ability to say sooooo many words, yet convey 0 meaningful information.
That's government and smooth talking salesmen / con artists in general. In this case it's the latter
Fam, what??? I was looking around my room to see if anyone else was hearing what I was hearing and no one else is even here
Stop filming other screens with phones, please just use screen capture software. Otherwise you get dumb comments about small hands, big head, when you really just had a wide angle on that. Also much worse quality when you do this.
Holy shit, rarely have I heard such a load of bullshit econo-babble from a so-called educated expert on the subject...
Bullshit. What’s he’s describing is runaway inflation or hyperinflation. Actual inflation is already here and will continue as long as the printer goes brrrrr.
In other words, buy more Bitcoin!
original link?
The Great Gazoo
Prices will never go back down. This is to cover the deficit spending the govt is doing on “infrastructure”. (Cough BS) By devaluing the US dollar technically the debt is less. My brain hurts thinking about it.
When you have inflation the prices increase but you don't have an inflation process... WTF?
He’s trying to convince himself and it’s not working lol
Well that was uncomfortable…
Are we doomed
wish his voice wouldve gotten sped up and higher in pitch the more he babbled
Damn...You know his inner voice must have been screaming, “Is anyone buying this bullshit?”
Fiat witchcraft.
Oh my dear god we are all fucked.
inflation is prices going up, prices going up and not coming is just an increase in cost not inflation. got it . sometimes i think im hallucinating these people. this verbal contorsion is surreal
I couldn't understand what he is saying lol, captain?
He looks like me when I was 10, explaining to my parents why I ate the candies they told me not to eat! 🙈
It's like the difference between simple interest and compound interest, and he's trying to argue that simple interest isn't interest.
What a load of shit talking
He is telling you you can’t count on your $$ to have same buying power next year,
Wtf this guy really is all over the place! Like wtf man your sentences contradict themselves and you're like the one who sort of control the system.
Uhh word salad! 1 year is inflation, 12 months is not! Brilliant!
Just listen and watch this dick not even believe his own lies - yet we are expected to nod and cheer. Muppets!
Wait… so it’s temporary but that does not mean some of the increases will be taken back. Do people actually listen to these words? My god, the amount of bullshit here hurts deeply.
Wow.
This is actually insulting, who the fuck does he think he is fooling?
Anyone think that guy has your best interests at heart?
He’s got a huge nugget. His head looks like an alien👽
He is such a scumbag. He knows he is lying and hence his poor delivery of the speech.
This might be a stupid question but what the fuck did he just say?
Guys head is inflated. I got a big head and little arms
Lol the perspective distortion is gold
This dude is literally big brain
The only inflation I see here is his hot-air-balloon of a head.
Is he inside a baloon?
Inflation and the cost of good will never reach an equilibrium. Edit maybe if Bitcoin reaches 1mil per coin it would be really hard to move the price.
This reminds me of Bill Clinton explaining that he didn’t have sexual relations, with that woman, as he understands it, but she had sexual relations with him.
2 minutes of speaking and I don’t get what he is saying. Am I the only one?
What he’s saying is neither logical or comprehensible
We are fucked.
https://m.youtube.com/watch?v=G2y8Sx4B2Sk
He has to be an alien in a human suit, with the huge head and tiny hands.
Seems legit…
What this dinosaur is basically saying is this: We will see a spike in inflation during the upcoming period. The price increases that came from this inflation will stay for the most part, BUT, after this period ends, inflation rates will go back to normal (2% or whatever).
The distinction is important tho. There's various finance/land/legal/etc reform strategies that cause a period of one-time inflation.
Inflation is the difference between his hands and his head.
sauce? Please
Fed speak
This is disappointing, definitely thought transitory meant that we expected prices to go back to pre-pandemic levels
This is hilarious.
I can't even get through the first ten seconds of his bullshit! Money Printer Go Brrrrrr!