Inflation highest in 30 years. Prices up 6.2% year over year.

[Thavoiceofthevoiceless]

Where is the lie in what I said?

You’re smart individual. You know there are multiple factors that can cause inflation.

 

[Tribal Outkast]

Is this glue sniffer really blaming Biden

This is mostly on Donald trump's inept administration. His bungling of covid got us here.

I’m just flabbergasted on all this. It’s like people don’t remember when businesses were straight up closed, gas was low AF cause people weren’t buying it because they weren’t going anywhere, people losing jobs and whatnot, cities looking like ghost towns out here, people literally not paying rent and getting PPP loans and stimmys. Like you know everybody was going to come back out here with their hands out like Peggy Bundy. This shyt shouldn’t surprise anyone. I mean prices and stuff was going up already… the pandemic made of worse!

 

[beenz]

Crazy how giving everyone more money simply means things cost more. Who would have thought?

this is the most simple economics 101. and I can't believe that they just thought printing trillions out of thin air was gonna be what's hot in these streets.

 

[beenz]

best way to invest in gold?

gold is a commodity and can be bought just like any other security. now, if you want the physical metal, that's another story.

 

[Vandelay]

Yeah but this isn't normal inflation. This is post COVID caused. Are people eating more food or buying more cars? Nope the economy reopened with fewer people working.

Same way the wood supply caught up everything else will. Which is why they keep calling it a transitory cycle.

None of this is normal. There's reverberations however. Those reverberations are hitting other industries. Wood caught up...but wood is not coming down in price. How do I know, because I manage the wood pallet vendors for my company. I legitimately did a national RFP and signed new contracts February of this year. By June, all of our prices doubled if not quadrupled. They are not going back down to the contractual prices because of extenuating circumstances clauses in that contract.

A lot of the shocks are supply side, I'm not discounting that, but I'm on the frontlines of commodity price at my job. Labor being a commodity is not going back to the prices it was. I've talked about it quite a bit on here in other threads. These prices are not coming back down for a lot of things because the market simply will not dictate it to go back down to prepandemic prices.

Lumber | 2021 Data | 2022 Forecast | 1978-2020 Historical | Price | Quote | Chart

Chicago lumber futures traded just below $600 per thousand board feet in mid-November, remaining well above the pre-pandemic five-year average of $356 amid a pick up in homebuilding, tight supply, and higher US import tariffs for Canadian softwood. In the United States, sawmills are facing a labor shortage as workers are unwilling to work in such dangerous conditions at low wages. Meanwhile, in British Columbia the government has settled the cost of logs – the raw material for lumber - four times higher this month as it was one year ago, weighing in the production levels. .

Supply chain breakdowns is one issue, but you cannot inject infinite money into a world with finite supplies.

This inflation is a combination of issues. People aren't going to work for the wages they used to. My position is they shouldn't. What we need to adapt to is this world of abundance people thought we had prepandemic was artificial. Things are going to normalize to what they should've been all along.

 

[CrimsonTider]

Not quite. For one, while the tax cuts were very very unnecessary given the state the US economy at the time (it was good and recovering well), the economy was fully open and supply chains weren’t in disarray.

The issue this time around is the scale of money that’s been printed on top of the fact that many economies/businesses had been shut down from a government induced demand shock ie the lockdowns.

More money chasing fewer goods is inflation 101. The issue now is this inflation isn’t as “transitory” as the Fed made it out to be.

The longer inflation goes, the “stickier” it’ll get and people will have to adjust their expectations accordingly.

If it get’s really bad then the Fed will have to hike interest rates to take excess money out of the system. But in doing so, it becomes more expensive to borrow, the US government will have to spend more money to service its debts (which just shot up due to all the recent money printing) and non-fixed interest rate debts gets more expensive to service.

It’s partially the reason why Bitcoin has become so popular recently.

The inflation is transitory

 

[CrimsonTider]

But but 1200 dollar stimulus

 

[CrimsonTider]

None of this is normal. There's reverberations however. Those reverberations are hitting other industries. Wood caught up...but wood is not coming down in price. How do I know, because I manage the wood pallet vendors for my company. I legitimately did a national RFP and signed new contracts February of this year. By June, all of our prices doubled if not quadrupled. They are not going back down to the contractual prices because of extenuating circumstances clauses in that contract.

A lot of the shocks are supply side, I'm not discounting that, but I'm on the frontlines of commodity price at my job. Labor being a commodity is not going back to the prices it was. I've talked about it quite a bit on here in other threads. These prices are not coming back down for a lot of things because the market simply will not dictate it to go back down to prepandemic prices.

Lumber | 2021 Data | 2022 Forecast | 1978-2020 Historical | Price | Quote | Chart



Supply chain breakdowns is one issue, but you cannot inject infinite money into a world with finite supplies.

This inflation is a combination of issues. People aren't going to work for the wages they used to. My position is they shouldn't. What we need to adapt to is this world of abundance people thought we had prepandemic was artificial. Things are going to normalize to what they should've been all along.

Lumber prices are down significantly

Monthly lumber price U.S. 2021 | Statista

 

[Vandelay]

Lumber prices are down significantly

Monthly lumber price U.S. 2021 | Statista

Down, but still significantly higher. My link shows $586. We can go chart for chart.

I'm talking to vendors weekly about this.

Lumber and plywood prices typically rise in the spring and drop by the end of fall, by about five percent. This year look for not a decline but a leveling off. Prices will remain high for another two or three years, then drop back to more normal levels. The key to the pace of decline will be mortgage rates.

 

[You Win Perfect]

yup, if you had all ur money invested in blue chip stocks or any index fund, you would be ahead of inflation.

that said, I need to get more of my cash in my investment account or use it to pay more on my mortgage because I'm losing money when I keep holding it

majority of americans don't have any money to put in "investments"
ya'll sound like some of those people that say pull yourself up by the bootstraps

 

[Uitomy]

Prices creeping up every where. It pays to be self sustainable right now.

I've been wanting to buy clothes and bullshyt not gonna lie, but I can't justify it at the moment.

Going to stock pile ammo, invest in index funds, maybe side hustle. I'm doing better than a lot but I want to beat inflation.

Buy clothes with strong resale value. I only buy stone island and Nike for my jackets shoes and athletic apparel cause I know I can get some cash for that when I need it.

 

[You Win Perfect]

You can't print money AND have enhanced unemployment/stimulus benefits during the entire pandemic quarantine.

Any rise increased wages/money into the economy has to be slow/controlled. There are only a finite number of goods.

This is basic supply and demand. There's more money and the same or less amount of goods. People pay more. There's nothing else to think about this.

Less wood
Less metal
Less microchips
Less gas
Less housing
Less plastic
Furniture, diapers, chicken, cheese, fruits...

People will pay more AND have to pay more when there's less. You just can't add money to the system with no consequences.

It's like playing monopoly but everyone starts off with $5k instead of $1,500.

you guys are trying to sound smart and shyt as if the government doesnt' know what they are doing and had not planned this all out ahead of time

 

[ViShawn]

Buy clothes with strong resale value. I only buy stone island and Nike for my jackets shoes and athletic apparel cause I know I can get some cash for that when I need it.

I buy 'slow fashion'. Classic menswear, shoes, etc and take care of my stuff. I just work from home now. The past year and a half so I feel like I don't need to.

 

[phcitywarrior]

The inflation is transitory

Except it isn't. Businesses set their forward looking expectations/budgets based on current and preceding costs/inputs. When inputs have been rising in costs month over month they’re not going to say “ohh this transitory”. The bake in their forecasts on today’s data.

That’s why they say inflation is a self-fulfilling cycle.

 

[beenz]

majority of americans don't have any money to put in "investments"
ya'll sound like some of those people that say pull yourself up by the bootstraps

with apps like robinhood, ANYONE can invest. this ain't no randolph and mortimer duke shyt from trading places.

and if u have any type of money put up, you'd be better served in investing.