While standing on the deck of a ship and it appears as though the level of the ocean is rising, this is an optical illusion. It is actually the ship that is sinking. Similarly, inflation isn’t an increase in prices. It’s a decrease in the value of your nation’s currency. For the US dollar, it’s value has decreased by 6.22 percent in the past 12 months.
Are you making 6 percent more than you were last year? I’m not. The problem is accelerating. In September 2021, the rate of inflation was 5.4 percent. In August, it was 5.3 percent.
If the rate of increase of inflation continues, and there is no reason to think that it won’t, November will see an inflation rate of 7.17 percent year over year. At this point, there is no sign that the rate of inflation stops in November.
The last time that the United States saw an inflation rate of more than 3.8 percent was in 1981, when the end of the Carter administration had the US suffering through 8.9 percent inflation. The year before, 1980, the rate was even higher- 12.5%. By that time, the Fed had increased the prime rate to a whopping 18%, to no avail.
At a 12.5% rate of inflation, prices double every 5 and a half years. The only thing that stopped the Carter caused inflation was a massive tax cut initiated by President Reagan. This tax cut reduced the highest marginal rate from 70 to 50 percent, then again to 28 percent. That isn’t going to happen any time soon, so…
The government will try to spin it. They will fudge the numbers by saying that increases in food and energy don’t count, as if no one is affected by paying $4.50 a gallon for gasoline. However, they won’t be able to hide the decline in purchasing power for much longer. If
Biden’s the left’s stupid policies continue, the level of fuckery chicanery required for the Democrats to not get slaughtered in the midterms will be epic.
We are in for some very difficult times.
E M Johnson · November 12, 2021 at 7:12 am
it would seem some industry is impacted more due to commie policies. energy, medical and logistics no doubt have higher than average increases from leftist fuckery. normies are starting to piss me off. wake up assholes and get with the program
It's just Boris · November 12, 2021 at 8:41 am
The numbers are, of course, the “official” numbers. Actual costs on the things people buy regularly – food, energy – have been going up faster.
Divemedic · November 12, 2021 at 8:59 am
Exactly. I pointed that out in the post.
It's just Boris · November 12, 2021 at 6:24 pm
*sigh* and the rest of my post got lost, apparently. User error, most likely.
Short version, another question is what inflation rate (or escalation) businesses are using to predict future costs. For a project I’m on that’s supposed to complete in 2025, for instance, they are still using an escalation rate of 3.5%. That will lead to serious problems unless the inflation rate reverts in the next couple of months.
TCK · November 14, 2021 at 4:06 am
Aw, you’re expecting the demonrats to get slaughtered in a free and fair election next November, that’s adorable.
Communist dictatorships don’t have free and fair elections.
Divemedic · November 14, 2021 at 8:24 am
TCK · November 15, 2021 at 2:05 am
So I just re-read that last section and I have to ask:
Do you think we can make it to the mid-terms before things get big and igloo’y, or should we be planning on ‘sportiness’ starting notably sooner?
Divemedic · November 15, 2021 at 7:41 am
Most resistance will be passive: people will simply ignore edicts that they don’t like. I think it will take a lot to get grass roots active violent resistance on anything more than a black swan frequency.
Official resistance to the Feds will likely start with the states, likely Florida or Texas.
You will then see a more forceful Fed response, perhaps even the FBI arrest of the offending governor.
LargeMarge · November 21, 2021 at 5:55 pm
I deal in reality instead of theory.
We operate a small organic teaching farm near the outskirts of Eugene, Oregon.
If our chillers are full, we quit processing animals.
If grocery orders are up or we add another farmer market to our schedule, we can increase volume until we reach capacity.
No theory involved.
The use of any version of fiat currency (zimbabwe ‘pile of knuckle-bones’, Venezuela ‘boli-bux’) in combination with the suggestion of ‘value’ is inaccurate, a canard.
Fiat currency possesses zero-zero-zero value by definition.
Saying ‘third time today, the dollar lost value again’ is inherently misleading.
Let’s stick with ‘the dollar lost purchasing power because of Federal Reserve Bankers are utterly incompetent… and probably add meth and LSD to their hourly tokes’.
This represents the results (although perhaps not the process).
Paper money has zero-zero-zero value.
Digital currency — bitcoin, etcetera — has less value than zero-zero-zero.
Each is an example of The Greater Fool — last person holding the worthless anything — baseball cards, ’47 Packard — is The Greater Fool.
Each of the middle-holders are merely the minor fool… as long as The Greater Fool stumbles into the loop.
,Rawles discusses buying Swiss snow-bux or Singapore clam-shell bux etcetera as a ‘hedge against inflation’… ignoring the fact he is the minor fool hoping for The Greater Fool to purchase his valueless fiat currency.
If The Greater Fool decides to buy some packages of smoked sausages from a small organic farmer market, ,Rawles gets demoted to The Greater Fool.
Probably a bad idea.
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