Author Topic: Real cause of inflation  (Read 297 times)

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Offline dutch508

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Real cause of inflation
« on: January 12, 2022, 05:41:31 PM »
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Star Member TheFarseer (9,010 posts)
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Real cause of inflation

Has anyone noticed that although there is high inflation, banks are still paying next to nothing in interest? Makes me wonder if the biggest cause of inflation is the Fed printing money so banks can play the stock market, buy back their own stock and hand out huge bonuses.

It also occurs to me that Republicans (and the media) touting inflation has given cover to big companies to raise their prices and rake in record profits. Or maybe it’s a bill in Congress that hasn’t even passed  I can’t tell! Thank you for reading my off the cuff rant!

 :whatever:

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Star Member uponit7771 (80,677 posts)

2. K&R, biggest cause of inflation is car sales new and used then fuel prices. Both are going to be

... short term IMHO.

There are no cars to buy

 :thatsright:

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Star Member WHITT (2,421 posts)

7. Yep

Used cars are a full THIRD of all inflation, and given the Fed doesn't want zero inflation, but prefers 2.2%, it's actually an even larger amount of what's remaining.

The administration should have acquired a shuttered facility with a white room (I'm sure there's at least a couple), and offered X millions to whichever company would immediately start manufacturing chips. It would have already been over.

 :thatsright: :thatsright:

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liberal_mama (810 posts)

11. My husband works at a large car dealership. There are hardly any cars now. The lots used to be full

and now there are very few. Fortunately, he's an auto technician so he's been repairing a lot of the existing older cars. It's also challenging to get parts and chips, he said.

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Star Member WHITT (2,421 posts)

5. The Fed Can't "Print" Money

The only manner money can be printed is to first issue the bonds to cover the debt.

The Fed merely creates digital money. It's not inflationary as it doesn't increase the debt, and it's later destroyed, like it never happened.

 :whatever:

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Tickle (166 posts)

16. so you all beilieve

that retailers and grocery owners all at the same time decided to raise prices because republicans touted inflation? Ok. Some things I just won't argue about.

The Feds will be raising the rates soon and not just once

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Star Member Emile (391 posts)

17. Two words, Predatory Capitalism!

They did the same thing to Jimmy Carter.

 :whatever:
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Offline Ralph Wiggum

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Re: Real cause of inflation
« Reply #1 on: January 12, 2022, 05:46:52 PM »
DUmmy Star Member TheFarseer has displayed absolutely no comprehension on pretty much anything about the economy, and also probably can't see nothing much further than his/her/its nose.
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Offline DLR Pyro

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Re: Real cause of inflation
« Reply #2 on: January 12, 2022, 06:57:16 PM »
looks like something significant happened in the Country near the end of Jan 2020 or the start of Feb 2020 that caused the inflation rate to shoot to the moon.  Wondering what that significant event might have been...

#LGB  #FJB


source for graph https://www.statista.com/statistics/273418/unadjusted-monthly-inflation-rate-in-the-us/
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Online 67 Rover

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Re: Real cause of inflation
« Reply #3 on: January 12, 2022, 06:57:36 PM »
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Star Member WHITT (2,421 posts)

7. Yep

Used cars are a full THIRD of all inflation, and given the Fed doesn't want zero inflation, but prefers 2.2%, it's actually an even larger amount of what's remaining.

The administration should have acquired a shuttered facility with a white room (I'm sure there's at least a couple), and offered X millions to whichever company would immediately start manufacturing chips. It would have already been over.

Stupidest most ignorant thing you will read on DU all month.  :banghead:
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Offline SVPete

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Re: Real cause of inflation
« Reply #4 on: January 12, 2022, 07:24:48 PM »
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Offline USA4ME

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Re: Real cause of inflation
« Reply #5 on: January 12, 2022, 09:54:14 PM »
 :thatsright: :thatsright:  :thatsright:

Leftists are almost as sharp as a spoon.

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Offline CollectivismMustDie

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Re: Real cause of inflation
« Reply #6 on: January 13, 2022, 07:47:05 AM »
DUmmies...always focusing somewhere other than where they should be.

Instead of trying to wrap their DUmmy brains around complex or complicated matters which they can never hope to understand, they should stick to simple matters:

Democrats = high fuel, energy, and food prices, high inflation, and social anarchy.

From carter to obama to biden, democrats are unfit to lead.
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Offline SVPete

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Re: Real cause of inflation
« Reply #7 on: January 13, 2022, 08:13:04 AM »
From an Econ 1 prof long ago, a simple explanation of what inflation is is "Too much money chasing too few goods". Applied to current inflation:

* Some, transient, inflation is due to temporary supply chain logistics disruption, largely from key people getting Covid and having to stay home for a couple of weeks;

* Much recent inflation is from the US gooberment dumping trillions of dollars into circulation in the US without any significant corresponding increase in productivity; this inflation will be medium or long term.
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Offline Zathras

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Re: Real cause of inflation
« Reply #8 on: January 13, 2022, 08:25:43 AM »
Stupidest most ignorant thing you will read on DU all month.  :banghead:

That is until the next new post from the DUmp.
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Offline DLR Pyro

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Re: Real cause of inflation
« Reply #9 on: January 13, 2022, 09:36:57 AM »
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The administration should have acquired a shuttered facility with a white room (I'm sure there's at least a couple), and offered X millions to whichever company would immediately start manufacturing chips. It would have already been over.

Stupidest most ignorant thing you will read on DU all month.  :banghead:

Agreed.  DUmmies have no clue what is involved in producing a chip.  It's not like a bakery making 10,000 loaves of white bread in the morning, then changing over to making 10,000 loaves of rye bread after the noon lunch break.

This video talks about the chip shortage.  From 4:30 to about 6:15 it talks about how involved a process is involved in gearing up for chip production  https://youtu.be/AeN3oQx-o68
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Offline SVPete

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Re: Real cause of inflation
« Reply #10 on: January 13, 2022, 09:50:40 AM »
1. It takes years to build and bring online a new fab line, and to train its staff.

2. A "shuttered facility", if there are any in the US outside of DUmmies' imagination, will have obsolete equipment to remove and dispose of, will have to be renovated to accommodate the physical infrastructure needed by modern equipment, and then new equipment installed. And, of course, staff will have to be trained.

Either way, it's a task requiring years, not the weeks DUmmies' imagine would be all that is required.
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Offline 3rd-try

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Re: Real cause of inflation
« Reply #11 on: January 13, 2022, 10:22:28 AM »
Stupidest most ignorant thing you will read on DU all month.  :banghead:

I think you underestimate them. I'd bet they'll say something more stupid/ignorant in the next 24 business hours.

Offline Carl

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Re: Real cause of inflation
« Reply #12 on: January 13, 2022, 11:15:38 AM »
You would get more economic knowledge at the monkey exhibit at a zoo then from those mutants.

Offline SVPete

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Re: Real cause of inflation
« Reply #13 on: January 13, 2022, 11:39:08 AM »
You would get more economic knowledge flung at you at the monkey exhibit at a zoo then from those mutants.

Clarification.
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Offline USA4ME

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Re: Real cause of inflation
« Reply #14 on: January 13, 2022, 01:17:39 PM »
I see the term “quantitative easing” has never penetrated their protected world. We’ve know for years that all the money the Fed has been pumping into the market over the past decade would finally end. Artificially introduce capital into the system rather than let it be created naturally and eventually it’s going to water down the money supply. This has never been a secret.

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Offline jukin

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Re: Real cause of inflation
« Reply #15 on: January 14, 2022, 06:37:45 PM »
You would get more economic knowledge at the monkey exhibit at a zoo then from those mutants.

What more can be added after this?

 :hi5:
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Offline landofconfusion80

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Re: Real cause of inflation
« Reply #16 on: January 15, 2022, 01:04:44 PM »
1. It takes years to build and bring online a new fab line, and to train its staff.

2. A "shuttered facility", if there are any in the US outside of DUmmies' imagination, will have obsolete equipment to remove and dispose of, will have to be renovated to accommodate the physical infrastructure needed by modern equipment, and then new equipment installed. And, of course, staff will have to be trained.

Either way, it's a task requiring years, not the weeks DUmmies' imagine would be all that is required.
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Offline jukin

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Re: Real cause of inflation
« Reply #17 on: January 15, 2022, 01:32:02 PM »
Stupidest most ignorant thing you will read on DU all month.  :banghead:

So far.
When you are the beneficiary of someone’s kindness and generosity, it produces a sense of gratitude and community.

When you are the beneficiary of a policy that steals from someone and gives it to you in return for your vote, it produces a sense of entitlement and dependency.