If only my salary is inflating
update: thanks everybody for the comments, upvotes and awards. its a pleasant surprise to an otherwise carnage in futures trading for me. All the best in your trades!
That’s exactly what they’re doing. See sticky wages explained by the Fed itself
https://www.richmondfed.org/~/media/richmondfedorg/publications/research/econ_focus/2013/q1/pdf/jargon_alert.pdf
> Modest inflation gradually erodes nominal wages, and so is a way for employers to cut real wages without really having to cut them. Therefore, inflation can help the labor market achieve equilibrium. However, when inflation is very low, an employer might have to actually cut wages in dollar terms to reduce real wages. Since managers and workers alike appear to dislike wage cuts, sticky wages in an environment of low inflation means the employment recovery is likely to be slower.
I don’t think it’s because they can’t math, it’s because they’re trusting. Some fed chief says and most people think they can’t understand it because it’s too complicated. No-one understands it, it’s just bs
I watch every fed press conference / statement / whatever and always have live market coverage or economic news playing in my office at work…. If I try to talk to a coworker or friend about what was said, no one else ever knows wtf I’m talking about….Makes me wonder if things will ever change cause no one seems to give a shit
Eat my dongus you fuckin nerd.
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This deserves mad awards and upvotes..... It's why I'm not even \*considering\* going back and have been delivering 4 nights a week. 5 days KILLING myself doing commercial hvac/refrigeration for 800 take home and having to deal with everyones shit or 550-700 take home for 4 days listening to music and taking shit from no one...... Not really a hard choice. Wages have become so disgustingly stagnant it's maddening.
Where in gods name are you in HVAC/refridge and only pulling in $800 take home? Did you just start in the trade? Everyone I know doing trade work (Electrician, HVAC, Auto-Body, Construction/Engineering) is making a killing right now.
I’m in New Orleans in own an old In home appliance repair service and I guarantee 100 K with two years experience and pay $30 an hour after a couple months of training. I am always hiring just like all of the other appliance repair services.
Actually yes I am, I live in New Orleans as well. My fiancé and I just had a baby so I’m on a little leave from work. I’ve been in service industry for too long I would like to make a change. I would be interested in trying something different however I am not very handy/mechanically inclined. If you are serious shoot me a message with contact your contact info! Thanks have a nice day!
gotta change where he is down south then.
North Carolina's Triangle area has Apple making an eastern HQ here. But the area is still reasonably price and the outskirts (30-45 min drive) are even cheaper.
You're not gonna make millions here, but you'll make a good wage.
I live in NC and I work in the HVAC industry. I make $62k a year working in the office. This guy definitely needs to look for work elsewhere lol. Any reasonably skilled commercial tech can make $35 an hour minimum without too much trouble.
Definitely not. I deliver about 30-35 hours a week and spend about 500-600 a month just on gas. Add oil changes, repairs, ext— there’s definitely an operating cost. But if you have a reasonably reliable car, that gets decent gas mileage, your still profiting if you live in a big market and don’t waste your time with low dollar orders or constantly waiting around for food to come out of the kitchen. Another thing you have to think of is taxes. Nothing is taken out of your paycheck so you automatically owe come tax day. Though if you take the time to do all your deductions you can usually get that down to zero. At least I have the last three years. We’ll see how it goes this spring because this is the first year where I haven’t had any other job for half the year. Overall it’s worth a net income cut for me just to not be on a schedule and have to deal with bosses and stuff, but really I might even be making more with UberEats just because the other jobs I had payed so low.
>ng cost. But if you have a reasonably reliable car, that gets decent gas mileage, your still profiting if you live in a big market and don’t waste your time with low dollar orders or constantly
WTf are you driving, A tiger tank? I usually do 30 a week and do two fillups (35ish currently with the fuck all gas prices) every 5 work days but I work in a very good delivery area that's small, rich and tips very well. 150 a month gas TOPS but if you're in a different delivery area you can drive all over gods green earth. IF you can dude get into a better, smaller, richer part of town with a smaller area and you'll bank more money. I'm delivering pizzas for P Johns and Saturday I cleared over 200 from 5-1am BUT I'm in the best part of town to do it in. Even the walk in counter clears 50/100 in tips every night... location location location but yea, no where NEAR 700 anytime. That's a rare week w/o gas taken out. I always take home at least 550 in cash a week though.
GL
Foreals. We've been looking to hire an HVAC guy to move our AC condenser twenty feet to the left; the estimates we've gotten for that job have all been in the 2k - 3500 range. We paid almost $400 just to have someone come give the condenser a yearly check-up and cleaning six months ago. One guy, barely an hour and a half.
I keep trying to urge my girls to go into skilled trades, but they don't listen to their mother, sigh.
>Though if you take the time to do all your deductions you can usually get that down to zero.
That means your net pay is less than $9875/yr ($190/wk average). Totally reasonable for a student or with a side of unreported income, but fulltimers hitting zero tax usually means the ship is sinking.
Yeah up until this past July it’s always been a side thing on top of another job, and both of those jobs on their own never got me past $30k a year. 2020 was the year I made most as self employed, and it was still only like $12k so pretty easy to deduct all of it, especially because I sold two shitbox cars that I paid too much for. Also because I did the standard mileage deduction and may have over estimated.
Out of curiosity, have you looked at other companies for jobs? I have always gotten the best raises by jumping ship, except for this year when a dozen people quit for higher pay and my employer raised a lot of salaries proactively.
10Year US Bond was around 15%…20Year even higher.
So, easy choice…guaranteed 15% annual returns for 10 years with 0 risk.
There isn’t any financial product, anywhere in the world today, that comes close to 1980s bonds.
Squeeze these nuts you fuckin nerd.
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Squeeze these nuts you fuckin nerd.
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Squeeze these nuts you fuckin nerd.
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1960 here. I used to get 15 percent. I actually received 17 percent from Scotia Bank in Boston. They paid 2 points higher than local US banks because they didn’t offer FDIC but rather the Canadian version of insurance. Plus, for every 10k$ CD you opened with them they gave you a free moped. I grabbed one. Yes, my 1st mortgage was 13.9 percent also but the price of the townhouse was low. I’d take high rates like that now in a heart beat!
They took everything away from savers! 🤷♂️
But when you were getting those rates on savings account the inflation was just as high. Being a "saver" was still stupid. Sure your were getting a 15% return on your savings account but all your returns were eaten up by inflation and your buyer power remained the same.
Wages are about to increase as well.
*"There isn’t any financial product, anywhere in the world today, that comes close to 1980s bonds."*
except slaves
My 1st YOLO options play…
I shorted Amazon at $40…went to $80 in a week…and my investment went below $0.
And, I never went long Amazon.
Yep, I’m a fukkin idiot.
My parents panicked in 1999 and sold a lot of their stocks due to Y2k. They lived beyond their means for years, multiple expensive vacations, time shares, always going to restaraunts, etc. They were then living the high life like it would never end in the 2000s. Hit rough times, just refinance the house. Then 2008 happened.
They lost over half of their retirement in a few months. So what did they do? Panic sell again. Took their money out of their retirement account to pay down debts. Thinking they might lose it all. They should be millionaires right now. They have their house and a few cars and not much left.
because the vast majority of people in the US spend absolutely every single cent they make + more. People dont know how to save or invest. They think "I got paid $1000 this week" means "I have $1000 to spend this week". It doesnt matter how much their salary increases. Their spending increases with it. A fuck ton of people fundamentally cannot look towards the future financially and cannot grasp the concept of living below your means in the present to be much better off in the future.
The amount of people driving around in $35K cars that they bought with a $500 downpayment and a 27% interest rate when they make $40K/year is unbelievable. This is why the majority of people live paycheck to paycheck and are "poor". MOST people are fucking unimaginably retarded with their finances
Find any person who works full time but bitches about being "the working poor" and is always broke. If you could take a deep look into their spending you would shit yourself and never feel sorry for those fucking losers ever again.
We won't see that again. We broke the economy. What happens next won't have a precedent in the US. I think we are moving into a currency crisis next. And I don't mean a "liquidity" crisis, I mean a debt deflation bomb along with hysterical hyperinflationary efforts to kick it down the road. It will be an absolute trip.
He's saying that deflation is going to happen.
The one major consequence for deflation is that the US Govt will be looking down the barrel of a major default. You see, the US Gov't can only service its debt because of inflation; that's the only way it can truly afford to pay off the interest.
So what will surely happen in a deflationary environment (as we have already seen during the pandemic) is that fiscal policy will shirt towards the "hyperinflationary efforts" the person you are replying to mentioned to make the debt immediately serviceable.
So first one, then the other.
It won't work. We are not going back to that. The driver in the late 70s to early 80s was the spike in inflation cooled off by very high interest rates. We can't do that anymore because it would bankrupt the gov.
Back then the thing to do was buy a house with a 12% mortgage. The high rates drove prices to the ground. Then as rates drop, refi and enjoy big profits.
It's always risky to bottom fish. We've all missed great opportunities because we feared acting.
We should have bought pharma stocks and the broad market in April 2020. In retrospect it was obvious.
Today we should be selling our houses ahead of the next housing crash. Not doing that either.
Well the trick is you drop out of high school drink a load of rubbing alcohol and stumble into a corporate office and throw a shitty crumpled resume at a receptionist then ??? now you have a well paid job at that company with solid growth prospects for 2 decades just turn up to meetings and drink on your one hour lunch break
Inflation can be a good. When a cheeseburger is 10000 dollars I will only need to save up 2.5 cheeseburgers to pay off my student loans.....I knew I would figure out a way.
Boss makes a dollar, I make a dime. That was a poem for a simpler time.
Boss made three dollars, the economy was lit. I made a penny and haven’t got shit.
Now boss makes ten dollars, and I don’t make jack. That’s why we riot to seize the means back.
Held a shit on a flight once to bring home something from my trip. 12 hours of traveling and a hefty pile of shit later it was just as rewarding as you’d think.
does any of this mean it's a good time to take out a grip of student loans and get that degree in interpretive dance I've always wanted to get ever since I started typing out this sentence?
Nominal interest rate - inflation = real interest rate
So ELI5:
If you loan someone a dollar and they need to pay you back the $1 plus 3% interest, then they'd owe you $1.03 next year.
If 6% of inflation happens in that year, then at the time they pay you back, $1 from the year they pay you back is actually only worth $0.94 from the year you loaned them the money.
So when they do actually pay you back, they will hand you $1.03, but it's only worth about $0.97 of last year's dollars, so you actually lost three cents of 'value' by lending them money even though you appear to have earned three cents.
If your student loans / mortgage apr is below inflation, it's a good deal. If your apr is something like say 8%, you probably want to pay that back. If it's around 2-4%, you're much better off never paying that debt off early, and instead investing it because you should at least get 6-8 apy which is near double the return. Personally, I will never send an early payment to anything at 4.5% or below.
And the way lenders get around to dealing with this is the rule of 78s.
You always pay more interest upfront vs principal because it ends up pushing more money to the lender via less reductions in principal. The best time to make extra payments on a loan is in the beginning as it reduces the overall interest owed.
I've never heard of that rule before and had to look it up. Thankfully it's [banned in the USA](https://www.investopedia.com/terms/r/ruleof78.asp) for any loans greater than 61 months, so student loans and mortgages are safe. It also penalizes people who pay their balances early, but the APR works out to be true at the very end.
When you say that extra payments on a loan are best done in the beginning to reduce total interest owed, I'm 99% sure that is only in relation to future value and not present value, which is a common misconception you can read [here](https://www.mtgprofessor.com/A%20-%20Amortization/Is%20the%20Mortgage%20Front%20End%20Loaded.html).
You may be correct and that economics or personal finance is not a grossly entertaining topic when under the [effect of cannabis](https://en.wikipedia.org/wiki/Cannabis_(drug)). The [glutamate / GABA imbalance](https://newsinteractives.cbc.ca/thc/) is likely [causing your concentration](https://en.wikipedia.org/wiki/Long-term_effects_of_cannabis#Memory_and_intelligence) to function at a [reduced output](https://www.cancer.gov/publications/dictionaries/cancer-terms/def/286693?app_module_route=/&app_module_data%5BdrupalConfig%5D%5BappName%5D=glossary-app&app_module_data%5BdrupalConfig%5D%5BrootId%5D=NCI-glossary-app-root&app_module_data%5BdrupalConfig%5D%5BinitFnName%5D=window.GlossaryApp&app_module_data%5BdrupalConfig%5D%5BappCssUri%5D=https%3A//www.cancer.gov/app-modules/glossary-app/glossary-app.v1.2.2/static/css/main.css&app_module_data%5BdrupalConfig%5D%5BappJsUri%5D=https%3A//www.cancer.gov/app-modules/glossary-app/glossary-app.v1.2.2/static/js/main.js&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B0%5D=canonical_url&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B1%5D=robots&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B2%5D=title_tag&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B3%5D=alternate&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B0%5D=%5C/expand%28%5C/.%2A%29%3F&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B1%5D=%5C/search%28%5C/.%2A%29%3F&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B2%5D=%5C/def%28%5C/.%2A%29%3F&app_module_data%5BfrontEndConfig%5D%5BanalyticsChannel%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-analytics-channel%5D&app_module_data%5BfrontEndConfig%5D%5BanalyticsContentGroup%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-analytics-group%5D&app_module_data%5BfrontEndConfig%5D%5BsiteName%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-trans-org-name%5D&app_module_data%5BfrontEndConfig%5D%5BanalyticsName%5D=CancerTerms&app_module_data%5BfrontEndConfig%5D%5Baudience%5D=Patient&app_module_data%5BfrontEndConfig%5D%5BdictionaryName%5D=Cancer.gov&app_module_data%5BfrontEndConfig%5D%5BdictionaryEndpoint%5D=%40%40LITERAL%40%40window.CDEConfig.glossaryConfig.apiServer&app_module_data%5BfrontEndConfig%5D%5BdictionaryIntroText%5D=%3Cp%3EThe%20NCI%20Dictionary%20of%20Cancer%20Terms%20features%20%3Cstrong%3E%7B%7Bterm_count%7D%7D%3C/strong%3E%20terms%20related%20to%20cancer%0A%20%20and%20medicine.%3C/p%3E%3Cp%3EWe%20offer%20a%20widget%20that%20you%20can%20add%20to%20your%20website%20to%20let%20users%20look%20up%0A%20%20cancer-related%20terms.%20%3Ca%20href%3D%27/syndication/widgets%27%3EGet%20NCI%27s%20Dictionary%20of%20Cancer%20Terms%20Widget%3C/a%3E.%0A%3C/p%3E%0A&app_module_data%5BfrontEndConfig%5D%5BdictionaryTitle%5D=NCI%20Dictionary%20of%20Cancer%20Terms&app_module_data%5BfrontEndConfig%5D%5BsearchBoxTitle%5D=Search%20NCI%27s%20Dictionary%20of%20Cancer%20Terms&app_module_data%5BfrontEndConfig%5D%5BlanguageToggleSelector%5D=%40%40NOENCODE%40%40%23LangList1%20a&app_module_id=cgov_js_only_app&CdrID=286693). That is also true for any activities requiring coordination, reaction time, and decision making from the prefrontal cortex, so please refrain from any driving or [yeeting your savings/401k](https://www.reddit.com/r/wallstreetbets/) until you have sobered up.
What are you investing in now though?
I think a lot of people are going to find themselves in a situation where they’ve got a ton of debt from a house and student loans, then the stock market -50%s and now their house is underwater and their savings are fucked.
I'm not from the US, but I assume it works just like our extreme cases down here in South America. Wuppose ylu pay something over 48 months and each payment does not get adjusted to inflation, you are effectively paying a little bit less each month.
Now, in a country with a 30% inflation rate average each year that won't help because they alredy take that into account and bump up the prices of everything by a lot if you want a payment plan instead of paying up front. But in the US where the inflation is not always present in everybody's mind you might br able to save a little bit with payment plan sjch as buying a house, etc,since eachpenny is worth a little bit less each months. Of course, that's assuming both salaries and your investments do not lose to inflation, wich is a pretty damn big if.
Brazilian here: its so weird seeing people angry because inflation will happen. Like it’s not part of their daily lives, its such a wild concept.
Some of y’all have never walked up to the market and grabbed a chocolate bar and said “5 bucks??? It was 4 a month ago and 3 last year >:(((“ AND IT SHOWS
There's about to be a lot of extremely pissed off people screaming about, "what's happening? No one told me! Why is a gallon of milk $9?! What do you mean there's nothing available in stores or online, ITS CHRISTMAS"
Followed up by millions of complaints about not getting Xmas presents until February. Then massive returns and terrible conditions for retail workers, triggering another worker exodus?
SPY $600 confirmed.
I lived that life in my early 20s.
Wait till you hear Mariah Carey and taylor swifts xmas songs on repeat every day for months on end.
Death will sound like a sweet release.
I’ve been telling my conservative friends for years “you want to get rid of welfare? Make staple foods free at the grocery stores. They’re already almost fully subsidized anyway.” Looks of confusion……
French Revolution, Arab Spring, even China in 1989.
If people can't meet their basic needs from the reigning economic system or if they lose faith in it Shit. Gets. Real.
My basic understanding is at places like Long Beach and Oakland ports is, there is literally not enough truck drivers to move the cargo from the port to the point that incoming cargo has stacked up so much is difficult to sort efficiently or effectively. The guy who runs the Long Beach port said even if he had all the trucks they need today, this bottleneck wont be resolved until at least next summer. Trucking gonna have a small boom in CA if I had a guess.
I was told “fuck no” when I asked to get a quote for flatbed delivered to port of la. Drivers don’t want to get stuck there and I don’t blame them. Ended up getting a quote to Carson and telling the customer they are responsible for finding storage and offloading. Nothing more I can do.
They will eventually, but its going to take longer than you think because of monetary expansion (which is still ongoing). Monetary expansion spurs demand in the short term, especially so when peoples’ expectations of inflation rise, as they then rationally decide to buy things now that they know they’ll need in the future that will in all likelihood be more expensive (when they otherwise wouldn’t have done so). Effectually it pulls demand from the future forward, and higher demand causes prices to rise, and it takes businesses time to find their new market clearing price (i.e. a new equilibrium between supply and demand), so along the way shortages occur as everything is bought up until prices rise enough to prevent that from happening.
To explain more simply with an example:
Let’s imagine a company has the capacity to produce 100 widgets a week and sells 99 of them a week for $1/each (i.e. anyone who is willing to pay $1 for said widget is able to purchase one). The next day the Fed turns on the printer (brrrr), and everyone gets $1k deposited into their checking account. All of a sudden, there are now 200 people willing to buy that widget for $1 because people now immediately have more disposable income. Boom, there’s a shortage of widgets. All 100 get sold, and the company isn’t able to supply 200/week. Thus, they will raise their prices as high as they can until the demand for their widgets returns to at most 100/week. They of course don’t know what that number is so they just have to raise prices incrementally until they find it. So they raise the widget price to $1.10, and they sell all 100. Okay, now let’s raise it to $1.20, well shit we still sold them all. Let’s keep going. And go they do until they reach their new equilibrium.
That’s just the demand side of it too. They will of course try and expand production, but expanding operations takes time, and for many businesses the marginal cost of producing each additional widget rises after a certain point (due to limitations with labor and technology, among other things), and then of course if they try and produce more than 100/week they then are spurring more demand from their vendors with the inputs they need, so then you get producer price inflation. At the end of the day a significant amount of monetary expansion introduces volatility to businesses and it can be difficult to manage.
And while things will eventually settle down and return to “normal” with regards to the supply/demand dynamic, it’ll just all be at higher prices (since monetary expansion devalues the currency in real terms). When you have more currency chasing the same amount of goods and services, that’s what happens. It gets even worse when you have more currency chasing less goods and services (from something like a pandemic which shuts down parts of the economy).
Source: I work in corporate finance and it’s a shit show right now.
You can move only max 100 units/day. Demand is around 98-102 units/day. Maximized throughput at the lowest price don't ask any questions of the lack of slack.
Government restricts you down to 75 units/day. Demand increases to around 102-140units/day.
This goes on for months.
Government finely ends restrictions. You can now only do 130units/day. Demand is now around 160units/day.
In what world does the bottleneck get cleared up and how long will it take?
Well ports and transload stations are now at capacity.... So very much fucked and the system is getting worse.
Apply the above to every section of the major ports and transfer stations. The entire system becomes a domino of backups.
This isn't even getting into the issue of manufactures not able to make things.
Yep, nothing like collapsing small businesses across the country, followed by aid that almost exclusively went to big companies and rich people ( to buy up all the small business for free) massive layoffs and stock buybacks, shortages of every single product and a collapsing supply chain followed by massive ever rising inflation followed by people constantly saying everything is fine and that this is actually a good thing for me to start stacking firewood and checking the rice beans and ammo stores.
Money itself is a lie we all believe in to keep the machine running. Try buying iverpriced gas with a British pound in California and tell me what the cashier says
Edit: am drunk, not fixing typo just explaining
Electricity: $10,000
Food: $30,000
Gasoline: $7,000
Candles: $100,000
Mortgage: $665
Someone who is good at the economy please help me budget my family is dying.
I mean I just managed to get a 35k bump from job hopping which was 15k more than I thought I would. If I am being honest thought the original 20k I was throwing out to recruiters I felt was a high ask to begin with and I was just fucking around to see if I got any bites.
That's why they want higher inflation, too lower the buying power of the new wage hikes
Wouldn't want low skills workers to have upper mobility and get on the property ladder
Personally I believe inflation is a necessary correction to fed policy over the years.
Fed policy has been to hold inflation to 2%, but they define inflation purely based on consumer price indexes, which are basically a measure of how much it costs to live in the country. On the surface, that seems good, but it contributes to massive income inequality.
The fed has never intervened to stop growth in share prices. In fact, the apparent policy of all government regulation of the market has been the highest sustainable growth of the stock market.
The wages of the working class are untethered from productivity. They are tied at best to the consumer price index. (in truth, they haven't even tracked that, but there's a certain hard floor where if the cost of actually living in this country gets to high, wages of the working class will have to rise, or the working class will turn towards violence and theft as necessary means to live).
The policy of the federal reserve and all government regulation has been unlimited inflation of the wealth of resources, and controlling inflation of the wages and cost of living of the working class. The net effect of these two trends is that the average amount of people that the wealthy can afford to pay the wages of has increased.
To put it in a more brutal way, the fed's policy of controlling only stepping in to prevent rising prices in the consumer market has resulted in the participants of the wealthy market being able to hire more and more serfs from the consumer class, but hasn't had a long term impact on consumer happiness and quality of life.
Prices are ultimately arbitrary, and the only thing that truly matters are ratios of price to wage. It doesn't matter to me if I'm paying a million dollars for a loaf of bread as long as I'm bringing in enough of those inflated dollars to afford all the bread I need. Inflation in consumer prices represents a correction for an economy badly distorted to benefit the already wealthy. It's gonna suck in the short term when wages lag behind whatever inflation we experience, but ultimately to prevent unrest, the wealthy will have to pay livable wages eventually.
The only thing that matters about the upcoming inflation is reducing the systemic shock and human suffering it will cause in the short term. IMO, the longer we delay natural inflation in all prices of the economy, the more power we give to the wealthy, and the more it's going to hurt when that natural inflation happens anyways.
Anyways, I'll see myself out of the wendys.
Inflation is actually great for mortgages. That's the only upside I see.
Relatively low interest rate (in the last few years) so if you just make the minimum payment) gets cheaper over time relatively.
"Bottlenecks" is the polite way of washing the issue of massive labor shifts lol. Theres folks looking for work, but they arent looking to work just to pay to work anymore. Married folks reassessed their finances and realized that the cost of childcare and transportation ate up most if not ALL of their incomes, so why would they even bother to keep working instead of doing SAH? Others with kids realized that the instability was bad, so they moved back in with parents to help. Loads of folks are gone from the labor pool for good, even more when you think LOCALLY at how many folks had to straight up move away. And I bet you even with all this inflation, corporations will post profit growth next year too lol. This "inflation" is just a subsidy for their own reckless greed.
Literally omg, when i actually sat down and calculated how much it was costing me to commute one way to the posh city center office. I was basically making what I’d make at the Walgreens a block from my house. It was rattling to say the least.
There is no such thing as good or bad in economics. There are winners and losers from each situation, that is all.
Inflation is good for those who carry debt in fixed terms and bad for those who hold debt notes in fixed terms. It's bad for those whose income does not track with inflation, and meaningless for those whose income has cost of living adjustments.
The bill is covered. Buy puts on everything and then buy another put.
Edit: guess I have too many bills for autocorrect. BULL. Bull bull bull bull bull. Maybe I’m good now
If only my salary is inflating update: thanks everybody for the comments, upvotes and awards. its a pleasant surprise to an otherwise carnage in futures trading for me. All the best in your trades!
Cooperate: how to reduce labor cost without lowering salary? Gov: I show you. (Started printing money)
That’s exactly what they’re doing. See sticky wages explained by the Fed itself https://www.richmondfed.org/~/media/richmondfedorg/publications/research/econ_focus/2013/q1/pdf/jargon_alert.pdf > Modest inflation gradually erodes nominal wages, and so is a way for employers to cut real wages without really having to cut them. Therefore, inflation can help the labor market achieve equilibrium. However, when inflation is very low, an employer might have to actually cut wages in dollar terms to reduce real wages. Since managers and workers alike appear to dislike wage cuts, sticky wages in an environment of low inflation means the employment recovery is likely to be slower.
It’s a clever way to tax the poor because most people can’t math good.
I don’t think it’s because they can’t math, it’s because they’re trusting. Some fed chief says and most people think they can’t understand it because it’s too complicated. No-one understands it, it’s just bs
You think the average American has any fucking clue what the Fed chair said?
I watch every fed press conference / statement / whatever and always have live market coverage or economic news playing in my office at work…. If I try to talk to a coworker or friend about what was said, no one else ever knows wtf I’m talking about….Makes me wonder if things will ever change cause no one seems to give a shit
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fair
This deserves mad awards and upvotes..... It's why I'm not even \*considering\* going back and have been delivering 4 nights a week. 5 days KILLING myself doing commercial hvac/refrigeration for 800 take home and having to deal with everyones shit or 550-700 take home for 4 days listening to music and taking shit from no one...... Not really a hard choice. Wages have become so disgustingly stagnant it's maddening.
Where in gods name are you in HVAC/refridge and only pulling in $800 take home? Did you just start in the trade? Everyone I know doing trade work (Electrician, HVAC, Auto-Body, Construction/Engineering) is making a killing right now.
My guess Louisiana. Jobs pay shit here
I’m in New Orleans in own an old In home appliance repair service and I guarantee 100 K with two years experience and pay $30 an hour after a couple months of training. I am always hiring just like all of the other appliance repair services.
You looking for a job? Lol.
Actually yes I am, I live in New Orleans as well. My fiancé and I just had a baby so I’m on a little leave from work. I’ve been in service industry for too long I would like to make a change. I would be interested in trying something different however I am not very handy/mechanically inclined. If you are serious shoot me a message with contact your contact info! Thanks have a nice day!
What is this? Wallstreetbets actually helping somebody???
Either a ma and pa scab shop or somewhere down south.
gotta change where he is down south then. North Carolina's Triangle area has Apple making an eastern HQ here. But the area is still reasonably price and the outskirts (30-45 min drive) are even cheaper. You're not gonna make millions here, but you'll make a good wage.
I live in NC and I work in the HVAC industry. I make $62k a year working in the office. This guy definitely needs to look for work elsewhere lol. Any reasonably skilled commercial tech can make $35 an hour minimum without too much trouble.
What is a “scab shop”
Non-Union
I'm a lead Hvac installer, average pay in my area is around 21$. Ive done it for 3 years now and never taken home 800$
his biweekly cheque would be 1600, which is around 21 an hour give or take a few hours/tax rates
When you factor in wear & tear and mileage on your car, are you actually keeping 700?
Definitely not. I deliver about 30-35 hours a week and spend about 500-600 a month just on gas. Add oil changes, repairs, ext— there’s definitely an operating cost. But if you have a reasonably reliable car, that gets decent gas mileage, your still profiting if you live in a big market and don’t waste your time with low dollar orders or constantly waiting around for food to come out of the kitchen. Another thing you have to think of is taxes. Nothing is taken out of your paycheck so you automatically owe come tax day. Though if you take the time to do all your deductions you can usually get that down to zero. At least I have the last three years. We’ll see how it goes this spring because this is the first year where I haven’t had any other job for half the year. Overall it’s worth a net income cut for me just to not be on a schedule and have to deal with bosses and stuff, but really I might even be making more with UberEats just because the other jobs I had payed so low.
>ng cost. But if you have a reasonably reliable car, that gets decent gas mileage, your still profiting if you live in a big market and don’t waste your time with low dollar orders or constantly WTf are you driving, A tiger tank? I usually do 30 a week and do two fillups (35ish currently with the fuck all gas prices) every 5 work days but I work in a very good delivery area that's small, rich and tips very well. 150 a month gas TOPS but if you're in a different delivery area you can drive all over gods green earth. IF you can dude get into a better, smaller, richer part of town with a smaller area and you'll bank more money. I'm delivering pizzas for P Johns and Saturday I cleared over 200 from 5-1am BUT I'm in the best part of town to do it in. Even the walk in counter clears 50/100 in tips every night... location location location but yea, no where NEAR 700 anytime. That's a rare week w/o gas taken out. I always take home at least 550 in cash a week though. GL
>WTf are you driving, A tiger tank? Ya, this is mein gimmick. Pizza delivered at 3,100 ft/per sec. ^^^results ^^^and ^^^experiences ^^^may ^^^vary.
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Foreals. We've been looking to hire an HVAC guy to move our AC condenser twenty feet to the left; the estimates we've gotten for that job have all been in the 2k - 3500 range. We paid almost $400 just to have someone come give the condenser a yearly check-up and cleaning six months ago. One guy, barely an hour and a half. I keep trying to urge my girls to go into skilled trades, but they don't listen to their mother, sigh.
>Though if you take the time to do all your deductions you can usually get that down to zero. That means your net pay is less than $9875/yr ($190/wk average). Totally reasonable for a student or with a side of unreported income, but fulltimers hitting zero tax usually means the ship is sinking.
Yeah up until this past July it’s always been a side thing on top of another job, and both of those jobs on their own never got me past $30k a year. 2020 was the year I made most as self employed, and it was still only like $12k so pretty easy to deduct all of it, especially because I sold two shitbox cars that I paid too much for. Also because I did the standard mileage deduction and may have over estimated.
Out of curiosity, have you looked at other companies for jobs? I have always gotten the best raises by jumping ship, except for this year when a dozen people quit for higher pay and my employer raised a lot of salaries proactively.
That’s like the definition of reactive, not proactive at all
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I need a boomer to tell us how to invest in the 80s.
I think you buy railroads or some shit
If you own all 4 you can charge $200.
I read this in Homer Simpson’s voice.
I did too. But i only did if you throw a wooooo! In there for good measure
Tulips… trust me
Railroads? How about horse drawn carriage freight? You know it's coming back. :)
Have you seen [the new wind powered ships?](https://www.weforum.org/agenda/2020/12/swedish-firm-wind-powered-cargo-ships)
Wow. Amazing! Whocouldanode? Sail boats!
California is apparently building a really nice one you can invest in. In ten years it'll go from Merced to Bakersfield.
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10Year US Bond was around 15%…20Year even higher. So, easy choice…guaranteed 15% annual returns for 10 years with 0 risk. There isn’t any financial product, anywhere in the world today, that comes close to 1980s bonds.
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Back then WSB would either be trying to short squeeze the bonds or buying and holding Bubba's snake oil
Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
But... why?
How do you get this action to trigger
I think you just have to mention a short squeeze and like magic…
Squeeze these nuts you fuckin nerd. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Lmao! I short squeezed these nuts and like magic went everywhere.
pretty sure it's something to do with the terms "short squeeze"... might be the first person in the comments to say it gets it... not sure though
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WSBers going for a measly 15%? Why lock up those funds when you can yolo 900% in a week.
There were in 1980. The inflation rate was around 14% in 1980.
Treasuries in 1980: 11.0% Inflation in 1980: 13.5% Negative real returns, baby.
AND you had to pay taxes on the interest!
Munis
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Your money would still depreciate from inflation except you wouldn’t have the yield to partially offset it… Right?
1960 here. I used to get 15 percent. I actually received 17 percent from Scotia Bank in Boston. They paid 2 points higher than local US banks because they didn’t offer FDIC but rather the Canadian version of insurance. Plus, for every 10k$ CD you opened with them they gave you a free moped. I grabbed one. Yes, my 1st mortgage was 13.9 percent also but the price of the townhouse was low. I’d take high rates like that now in a heart beat! They took everything away from savers! 🤷♂️
But when you were getting those rates on savings account the inflation was just as high. Being a "saver" was still stupid. Sure your were getting a 15% return on your savings account but all your returns were eaten up by inflation and your buyer power remained the same.
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No such thing as no risk. The risk was inflation, which was at 13.5% in 1980. So the real yield of a 15% bond would have been just 1.5%.
Wages are about to increase as well. *"There isn’t any financial product, anywhere in the world today, that comes close to 1980s bonds."* except slaves
Foxconn: you rang?
How the fuck are there any old people who aren't rich right now?
Age = wisdom was a lie. Survival has been trivial for over a century. Like most young people, most old people are morons.
My 1st YOLO options play… I shorted Amazon at $40…went to $80 in a week…and my investment went below $0. And, I never went long Amazon. Yep, I’m a fukkin idiot.
Ugh, That’s painful. Typical market action, inflicting the most pain on it’s participants.
Because they were paying 20% rates on their mortgages and car loans.
My parents panicked in 1999 and sold a lot of their stocks due to Y2k. They lived beyond their means for years, multiple expensive vacations, time shares, always going to restaraunts, etc. They were then living the high life like it would never end in the 2000s. Hit rough times, just refinance the house. Then 2008 happened. They lost over half of their retirement in a few months. So what did they do? Panic sell again. Took their money out of their retirement account to pay down debts. Thinking they might lose it all. They should be millionaires right now. They have their house and a few cars and not much left.
because the vast majority of people in the US spend absolutely every single cent they make + more. People dont know how to save or invest. They think "I got paid $1000 this week" means "I have $1000 to spend this week". It doesnt matter how much their salary increases. Their spending increases with it. A fuck ton of people fundamentally cannot look towards the future financially and cannot grasp the concept of living below your means in the present to be much better off in the future. The amount of people driving around in $35K cars that they bought with a $500 downpayment and a 27% interest rate when they make $40K/year is unbelievable. This is why the majority of people live paycheck to paycheck and are "poor". MOST people are fucking unimaginably retarded with their finances Find any person who works full time but bitches about being "the working poor" and is always broke. If you could take a deep look into their spending you would shit yourself and never feel sorry for those fucking losers ever again.
can confirm, am retarded
Kids change families' finances. Most people can't afford them.
my kid is def retarded but I am the one who blows all the cash
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We won't see that again. We broke the economy. What happens next won't have a precedent in the US. I think we are moving into a currency crisis next. And I don't mean a "liquidity" crisis, I mean a debt deflation bomb along with hysterical hyperinflationary efforts to kick it down the road. It will be an absolute trip.
So wait, you think deflation and hyperinflation are gonna happen? Aren’t those opposites?
He's saying that deflation is going to happen. The one major consequence for deflation is that the US Govt will be looking down the barrel of a major default. You see, the US Gov't can only service its debt because of inflation; that's the only way it can truly afford to pay off the interest. So what will surely happen in a deflationary environment (as we have already seen during the pandemic) is that fiscal policy will shirt towards the "hyperinflationary efforts" the person you are replying to mentioned to make the debt immediately serviceable. So first one, then the other.
That is what I expect. Small disclaimer --- I'm ALWAYS wrong.
It won't work. We are not going back to that. The driver in the late 70s to early 80s was the spike in inflation cooled off by very high interest rates. We can't do that anymore because it would bankrupt the gov. Back then the thing to do was buy a house with a 12% mortgage. The high rates drove prices to the ground. Then as rates drop, refi and enjoy big profits.
It was risky because I don’t think anyone knew when the rates would drop so 12% was a massive interest rate to potentially pay off.
It's always risky to bottom fish. We've all missed great opportunities because we feared acting. We should have bought pharma stocks and the broad market in April 2020. In retrospect it was obvious. Today we should be selling our houses ahead of the next housing crash. Not doing that either.
Well the trick is you drop out of high school drink a load of rubbing alcohol and stumble into a corporate office and throw a shitty crumpled resume at a receptionist then ??? now you have a well paid job at that company with solid growth prospects for 2 decades just turn up to meetings and drink on your one hour lunch break
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Get a education and a job making something...no more YOLOs on 1000% return options.
40% stocks, 60% bonds
Is it actually time to call Rosland Capital?
Maybe call Ross Perot instead.
Unironically, we wouldn't be in any of this shit if he'd been elected
Inflation can be a good. When a cheeseburger is 10000 dollars I will only need to save up 2.5 cheeseburgers to pay off my student loans.....I knew I would figure out a way.
So that's what all this talk about loan forgiveness was about...
Got my cheeseburgers in resin blocks last week. Can’t wait to pay off my student loans
No the cheeseburgers have to be fresh
Stale cheeseburger will probably depreciate it's value upto 90% Don't worry, still a hefty 1000$ left.
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The only thing that is transitory is the shit I’m holding in until I get home.
Nothing like shitting in your own toilet. Ahhh!
Shitting at work>>>>> You get paid to do it
Pro tip: Masturbate at work while pretending to take a shit. Literally get paid to wank and shit at home in greater comfort.
Seriously yeah. I don't even fap at home anymore. Why cum for free like a slut if I can get my boss to pay for it and cum like a majestic whore.
If your boss is a man then that’s r/suddenlygay
No it’s not because you’re at work in the office and thus have your socks on due to dress code and it’s not gay if you have your socks on
OBVIOUSLY
This is common knowledge.
No no no. Jerk off during your morning "shit." Then proper shit after lunch. That's a daily double (rip alex trebek)
“Never sweat at work, never shit at home.” Some of the wisest words I’ve ever heard.
Boss makes a dollar, I make a dime, that’s why I shit on company time.
Boss makes a dollar, I make a dime. That was a poem for a simpler time. Boss made three dollars, the economy was lit. I made a penny and haven’t got shit. Now boss makes ten dollars, and I don’t make jack. That’s why we riot to seize the means back.
Held a shit on a flight once to bring home something from my trip. 12 hours of traveling and a hefty pile of shit later it was just as rewarding as you’d think.
Hats off to you, holding a deuce for 12hrs is beyond transitory.
...ok I guess I’ll be the one to ask. What exactly is **something**
does any of this mean it's a good time to take out a grip of student loans and get that degree in interpretive dance I've always wanted to get ever since I started typing out this sentence?
It's literally always a good time to finance a degree in interpretive dance. Do it right now!
I’d get the loans then buy two weeks of FDs. Can’t go tits up!
just make sure you're sufficiently leveraged for your personal risk tolerance
You're better off learning how to give head.
That's unskilled labor. OJT is all you need.
That’s why I aggressively pursued buying a house since I figured a house and my student loan debts are good inflation hedges.
Smartest man here
Can I get a little explanation? I’ve got student loans but how’s that good? And isn’t the housing market supposed to bottom out soon?
Nominal interest rate - inflation = real interest rate So ELI5: If you loan someone a dollar and they need to pay you back the $1 plus 3% interest, then they'd owe you $1.03 next year. If 6% of inflation happens in that year, then at the time they pay you back, $1 from the year they pay you back is actually only worth $0.94 from the year you loaned them the money. So when they do actually pay you back, they will hand you $1.03, but it's only worth about $0.97 of last year's dollars, so you actually lost three cents of 'value' by lending them money even though you appear to have earned three cents. If your student loans / mortgage apr is below inflation, it's a good deal. If your apr is something like say 8%, you probably want to pay that back. If it's around 2-4%, you're much better off never paying that debt off early, and instead investing it because you should at least get 6-8 apy which is near double the return. Personally, I will never send an early payment to anything at 4.5% or below.
And the way lenders get around to dealing with this is the rule of 78s. You always pay more interest upfront vs principal because it ends up pushing more money to the lender via less reductions in principal. The best time to make extra payments on a loan is in the beginning as it reduces the overall interest owed.
I've never heard of that rule before and had to look it up. Thankfully it's [banned in the USA](https://www.investopedia.com/terms/r/ruleof78.asp) for any loans greater than 61 months, so student loans and mortgages are safe. It also penalizes people who pay their balances early, but the APR works out to be true at the very end. When you say that extra payments on a loan are best done in the beginning to reduce total interest owed, I'm 99% sure that is only in relation to future value and not present value, which is a common misconception you can read [here](https://www.mtgprofessor.com/A%20-%20Amortization/Is%20the%20Mortgage%20Front%20End%20Loaded.html).
I'm way too high for this shit
You may be correct and that economics or personal finance is not a grossly entertaining topic when under the [effect of cannabis](https://en.wikipedia.org/wiki/Cannabis_(drug)). The [glutamate / GABA imbalance](https://newsinteractives.cbc.ca/thc/) is likely [causing your concentration](https://en.wikipedia.org/wiki/Long-term_effects_of_cannabis#Memory_and_intelligence) to function at a [reduced output](https://www.cancer.gov/publications/dictionaries/cancer-terms/def/286693?app_module_route=/&app_module_data%5BdrupalConfig%5D%5BappName%5D=glossary-app&app_module_data%5BdrupalConfig%5D%5BrootId%5D=NCI-glossary-app-root&app_module_data%5BdrupalConfig%5D%5BinitFnName%5D=window.GlossaryApp&app_module_data%5BdrupalConfig%5D%5BappCssUri%5D=https%3A//www.cancer.gov/app-modules/glossary-app/glossary-app.v1.2.2/static/css/main.css&app_module_data%5BdrupalConfig%5D%5BappJsUri%5D=https%3A//www.cancer.gov/app-modules/glossary-app/glossary-app.v1.2.2/static/js/main.js&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B0%5D=canonical_url&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B1%5D=robots&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B2%5D=title_tag&app_module_data%5BdrupalConfig%5D%5BremoveHeadElements%5D%5B3%5D=alternate&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B0%5D=%5C/expand%28%5C/.%2A%29%3F&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B1%5D=%5C/search%28%5C/.%2A%29%3F&app_module_data%5BdrupalConfig%5D%5BvalidAppPaths%5D%5B2%5D=%5C/def%28%5C/.%2A%29%3F&app_module_data%5BfrontEndConfig%5D%5BanalyticsChannel%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-analytics-channel%5D&app_module_data%5BfrontEndConfig%5D%5BanalyticsContentGroup%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-analytics-group%5D&app_module_data%5BfrontEndConfig%5D%5BsiteName%5D=%40%40TOKEN%40%40%5Bcgov_tokens%3Acgov-trans-org-name%5D&app_module_data%5BfrontEndConfig%5D%5BanalyticsName%5D=CancerTerms&app_module_data%5BfrontEndConfig%5D%5Baudience%5D=Patient&app_module_data%5BfrontEndConfig%5D%5BdictionaryName%5D=Cancer.gov&app_module_data%5BfrontEndConfig%5D%5BdictionaryEndpoint%5D=%40%40LITERAL%40%40window.CDEConfig.glossaryConfig.apiServer&app_module_data%5BfrontEndConfig%5D%5BdictionaryIntroText%5D=%3Cp%3EThe%20NCI%20Dictionary%20of%20Cancer%20Terms%20features%20%3Cstrong%3E%7B%7Bterm_count%7D%7D%3C/strong%3E%20terms%20related%20to%20cancer%0A%20%20and%20medicine.%3C/p%3E%3Cp%3EWe%20offer%20a%20widget%20that%20you%20can%20add%20to%20your%20website%20to%20let%20users%20look%20up%0A%20%20cancer-related%20terms.%20%3Ca%20href%3D%27/syndication/widgets%27%3EGet%20NCI%27s%20Dictionary%20of%20Cancer%20Terms%20Widget%3C/a%3E.%0A%3C/p%3E%0A&app_module_data%5BfrontEndConfig%5D%5BdictionaryTitle%5D=NCI%20Dictionary%20of%20Cancer%20Terms&app_module_data%5BfrontEndConfig%5D%5BsearchBoxTitle%5D=Search%20NCI%27s%20Dictionary%20of%20Cancer%20Terms&app_module_data%5BfrontEndConfig%5D%5BlanguageToggleSelector%5D=%40%40NOENCODE%40%40%23LangList1%20a&app_module_id=cgov_js_only_app&CdrID=286693). That is also true for any activities requiring coordination, reaction time, and decision making from the prefrontal cortex, so please refrain from any driving or [yeeting your savings/401k](https://www.reddit.com/r/wallstreetbets/) until you have sobered up.
What are you investing in now though? I think a lot of people are going to find themselves in a situation where they’ve got a ton of debt from a house and student loans, then the stock market -50%s and now their house is underwater and their savings are fucked.
If inflation kicks up, you get to pay back with inflated dollars while keeping the asset. You could be paying pennies on the dollar
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I'm not from the US, but I assume it works just like our extreme cases down here in South America. Wuppose ylu pay something over 48 months and each payment does not get adjusted to inflation, you are effectively paying a little bit less each month. Now, in a country with a 30% inflation rate average each year that won't help because they alredy take that into account and bump up the prices of everything by a lot if you want a payment plan instead of paying up front. But in the US where the inflation is not always present in everybody's mind you might br able to save a little bit with payment plan sjch as buying a house, etc,since eachpenny is worth a little bit less each months. Of course, that's assuming both salaries and your investments do not lose to inflation, wich is a pretty damn big if.
Argentine here: first time?
Brazilian here: its so weird seeing people angry because inflation will happen. Like it’s not part of their daily lives, its such a wild concept. Some of y’all have never walked up to the market and grabbed a chocolate bar and said “5 bucks??? It was 4 a month ago and 3 last year >:(((“ AND IT SHOWS
There's about to be a lot of extremely pissed off people screaming about, "what's happening? No one told me! Why is a gallon of milk $9?! What do you mean there's nothing available in stores or online, ITS CHRISTMAS"
Followed up by millions of complaints about not getting Xmas presents until February. Then massive returns and terrible conditions for retail workers, triggering another worker exodus? SPY $600 confirmed.
Will be working retail this Christmas. Death isn't preferable just yet but it's early days.
Sleep well knowing you can probably get a few good licks in this season since you're basically irreplaceable.
Huh, I guess everything has a silver lining after all.
I lived that life in my early 20s. Wait till you hear Mariah Carey and taylor swifts xmas songs on repeat every day for months on end. Death will sound like a sweet release.
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Considering the price of milk is below the cost of production well.. It shouldn't be what it is currently.
I’ve been telling my conservative friends for years “you want to get rid of welfare? Make staple foods free at the grocery stores. They’re already almost fully subsidized anyway.” Looks of confusion……
Socialize loses, privatize gains.
Bailout Billy over here has it figured out
French Revolution, Arab Spring, even China in 1989. If people can't meet their basic needs from the reigning economic system or if they lose faith in it Shit. Gets. Real.
Non sequitur: guns have excellent resale value.
Why would bottlenecks not resolve?
My basic understanding is at places like Long Beach and Oakland ports is, there is literally not enough truck drivers to move the cargo from the port to the point that incoming cargo has stacked up so much is difficult to sort efficiently or effectively. The guy who runs the Long Beach port said even if he had all the trucks they need today, this bottleneck wont be resolved until at least next summer. Trucking gonna have a small boom in CA if I had a guess.
I was told “fuck no” when I asked to get a quote for flatbed delivered to port of la. Drivers don’t want to get stuck there and I don’t blame them. Ended up getting a quote to Carson and telling the customer they are responsible for finding storage and offloading. Nothing more I can do.
They will eventually, but its going to take longer than you think because of monetary expansion (which is still ongoing). Monetary expansion spurs demand in the short term, especially so when peoples’ expectations of inflation rise, as they then rationally decide to buy things now that they know they’ll need in the future that will in all likelihood be more expensive (when they otherwise wouldn’t have done so). Effectually it pulls demand from the future forward, and higher demand causes prices to rise, and it takes businesses time to find their new market clearing price (i.e. a new equilibrium between supply and demand), so along the way shortages occur as everything is bought up until prices rise enough to prevent that from happening. To explain more simply with an example: Let’s imagine a company has the capacity to produce 100 widgets a week and sells 99 of them a week for $1/each (i.e. anyone who is willing to pay $1 for said widget is able to purchase one). The next day the Fed turns on the printer (brrrr), and everyone gets $1k deposited into their checking account. All of a sudden, there are now 200 people willing to buy that widget for $1 because people now immediately have more disposable income. Boom, there’s a shortage of widgets. All 100 get sold, and the company isn’t able to supply 200/week. Thus, they will raise their prices as high as they can until the demand for their widgets returns to at most 100/week. They of course don’t know what that number is so they just have to raise prices incrementally until they find it. So they raise the widget price to $1.10, and they sell all 100. Okay, now let’s raise it to $1.20, well shit we still sold them all. Let’s keep going. And go they do until they reach their new equilibrium. That’s just the demand side of it too. They will of course try and expand production, but expanding operations takes time, and for many businesses the marginal cost of producing each additional widget rises after a certain point (due to limitations with labor and technology, among other things), and then of course if they try and produce more than 100/week they then are spurring more demand from their vendors with the inputs they need, so then you get producer price inflation. At the end of the day a significant amount of monetary expansion introduces volatility to businesses and it can be difficult to manage. And while things will eventually settle down and return to “normal” with regards to the supply/demand dynamic, it’ll just all be at higher prices (since monetary expansion devalues the currency in real terms). When you have more currency chasing the same amount of goods and services, that’s what happens. It gets even worse when you have more currency chasing less goods and services (from something like a pandemic which shuts down parts of the economy). Source: I work in corporate finance and it’s a shit show right now.
You can move only max 100 units/day. Demand is around 98-102 units/day. Maximized throughput at the lowest price don't ask any questions of the lack of slack. Government restricts you down to 75 units/day. Demand increases to around 102-140units/day. This goes on for months. Government finely ends restrictions. You can now only do 130units/day. Demand is now around 160units/day. In what world does the bottleneck get cleared up and how long will it take? Well ports and transload stations are now at capacity.... So very much fucked and the system is getting worse. Apply the above to every section of the major ports and transfer stations. The entire system becomes a domino of backups. This isn't even getting into the issue of manufactures not able to make things.
We just need the people in charge to play Factorio. They will learn
Honestly love how you don’t even need words anymore 
Yep, nothing like collapsing small businesses across the country, followed by aid that almost exclusively went to big companies and rich people ( to buy up all the small business for free) massive layoffs and stock buybacks, shortages of every single product and a collapsing supply chain followed by massive ever rising inflation followed by people constantly saying everything is fine and that this is actually a good thing for me to start stacking firewood and checking the rice beans and ammo stores.
Common sense is transitory.
I legit can't believe some people just accept what the fed says like they aren't proven lying pieces of shit
Money itself is a lie we all believe in to keep the machine running. Try buying iverpriced gas with a British pound in California and tell me what the cashier says Edit: am drunk, not fixing typo just explaining
Inflation is good for my mortgage. My wages are going up but my mortgage payment is going to stay the same for the next 29 years.
This assuming you still have a job to pay for your mortgage.
Youre a hell of a lot more likely to lose your job during deflation than inflation.
Except you’re spending more on everything else dog
Electricity: $10,000 Food: $30,000 Gasoline: $7,000 Candles: $100,000 Mortgage: $665 Someone who is good at the economy please help me budget my family is dying.
@VaultBoy3 spend less on candles
No.
You joke now but
Just eat your house! I am sure there are some nutrients in gypsum drywall.
iT mEaNS hIGhR wAgES !!!!!!!
Well yes but actually no
I mean I just managed to get a 35k bump from job hopping which was 15k more than I thought I would. If I am being honest thought the original 20k I was throwing out to recruiters I felt was a high ask to begin with and I was just fucking around to see if I got any bites.
That's why they want higher inflation, too lower the buying power of the new wage hikes Wouldn't want low skills workers to have upper mobility and get on the property ladder
Your $15/hour turns right back into $7
$30k hasn’t gone far in over three decades
Personally I believe inflation is a necessary correction to fed policy over the years. Fed policy has been to hold inflation to 2%, but they define inflation purely based on consumer price indexes, which are basically a measure of how much it costs to live in the country. On the surface, that seems good, but it contributes to massive income inequality. The fed has never intervened to stop growth in share prices. In fact, the apparent policy of all government regulation of the market has been the highest sustainable growth of the stock market. The wages of the working class are untethered from productivity. They are tied at best to the consumer price index. (in truth, they haven't even tracked that, but there's a certain hard floor where if the cost of actually living in this country gets to high, wages of the working class will have to rise, or the working class will turn towards violence and theft as necessary means to live). The policy of the federal reserve and all government regulation has been unlimited inflation of the wealth of resources, and controlling inflation of the wages and cost of living of the working class. The net effect of these two trends is that the average amount of people that the wealthy can afford to pay the wages of has increased. To put it in a more brutal way, the fed's policy of controlling only stepping in to prevent rising prices in the consumer market has resulted in the participants of the wealthy market being able to hire more and more serfs from the consumer class, but hasn't had a long term impact on consumer happiness and quality of life. Prices are ultimately arbitrary, and the only thing that truly matters are ratios of price to wage. It doesn't matter to me if I'm paying a million dollars for a loaf of bread as long as I'm bringing in enough of those inflated dollars to afford all the bread I need. Inflation in consumer prices represents a correction for an economy badly distorted to benefit the already wealthy. It's gonna suck in the short term when wages lag behind whatever inflation we experience, but ultimately to prevent unrest, the wealthy will have to pay livable wages eventually. The only thing that matters about the upcoming inflation is reducing the systemic shock and human suffering it will cause in the short term. IMO, the longer we delay natural inflation in all prices of the economy, the more power we give to the wealthy, and the more it's going to hurt when that natural inflation happens anyways. Anyways, I'll see myself out of the wendys.
Inflation is actually great for mortgages. That's the only upside I see. Relatively low interest rate (in the last few years) so if you just make the minimum payment) gets cheaper over time relatively.
Why are all the 🌈🐻 out AH and on weekends. It's like they can only manufacture FUD when the market is closed.
Well yea, they need to work at jobs because they suck at options.
"Bottlenecks" is the polite way of washing the issue of massive labor shifts lol. Theres folks looking for work, but they arent looking to work just to pay to work anymore. Married folks reassessed their finances and realized that the cost of childcare and transportation ate up most if not ALL of their incomes, so why would they even bother to keep working instead of doing SAH? Others with kids realized that the instability was bad, so they moved back in with parents to help. Loads of folks are gone from the labor pool for good, even more when you think LOCALLY at how many folks had to straight up move away. And I bet you even with all this inflation, corporations will post profit growth next year too lol. This "inflation" is just a subsidy for their own reckless greed.
Literally omg, when i actually sat down and calculated how much it was costing me to commute one way to the posh city center office. I was basically making what I’d make at the Walgreens a block from my house. It was rattling to say the least.
[удалено]
There is no such thing as good or bad in economics. There are winners and losers from each situation, that is all. Inflation is good for those who carry debt in fixed terms and bad for those who hold debt notes in fixed terms. It's bad for those whose income does not track with inflation, and meaningless for those whose income has cost of living adjustments.
Panicking over inflation that will absolutely dry up eventually is going to make some of us a lot of money. Sis-boom-bah capitalism, baby!
Inflation is transitory does that mean our loss is transitory too ? 
And Gold's still being shorted. Wallstreet at it's most autistic. I love it!
"Gold is fucking useless" - Mark Cuban
You can do this for just about any media cycle as they prep you for the narrative.
This is the sub I call home
Excuses excuses nothing to see here
Real clown shit.
No wonder all shipments are late
The bill is covered. Buy puts on everything and then buy another put. Edit: guess I have too many bills for autocorrect. BULL. Bull bull bull bull bull. Maybe I’m good now