Eisenhower:This PIece of Ground

[hoyajinx]

Nov 2, 2024 9:40:49 GMT -5 happyhoya1979 said:

In January 0f 2021 the prime rate stood at about 3.25% and the rate on a 30year mortgage stood at 2.96%. Today those rates in three and a half short years have gone up to about 8% and 7% respectively because of the inflation of the Biden-Harris era. That is 246% and 236% respectively. Since most people spend the largest portion of their earnings on housing and cars these encapsulate the living hell we have experiences and are experiencing and that began on January 21, 2021. The under 35 age bracket in particular has been the victims of this devastation.

Still disregarding context I see and using a January 20, 2021 cutoff date, ignoring worldwide inflation and the impact of the pandemic. Cool. Donald Trump was the single biggest job destroyer in modern presidential history. Thank the lord all those came back under Biden. He created so many jobs after January 20, 2021 after Trump ravaged the job market.

[happyhoya1979]

"ignoring worldwide inflation" -Things absolutely suck but suck more in other parts of the world. Be Happy!

[hoyajinx]

Nov 2, 2024 9:59:15 GMT -5 happyhoya1979 said:

"ignoring worldwide inflation" -Things absolutely suck but suck more in other parts of the world. Be Happy!

It’s almost as if the economies of the world are connected. I am absolutely flabbergasting by how dishonest your approach to all this is. It is nakedly partisan and superficial. Again, we have Joe Biden to thank for all the jobs he created after Trump lost them. Someone who decimated the economy as badly as Trump surely doesn’t deserve another term.

[bicentennial]

I'm not an economist but as I understand it when a government prints money it devalues its currency relative to other countries currencies so if there is high world wide inflation printing money would bring more of that inflation to the US. When a government does not print money but borrows money with a plan of how they pay that money back, there is less of an effect on inflation. When a government borrows money but has no plan for how to pay it back, it causes uncertainty in all the markets including stocks, bonds, futures, options and international currency.
When the house of representatives has repeatedly threatened to force the United States to default on its debts by refusing to allow increases in the debt ceiling and by not creating a funding plan for the government, they create that same chaotic uncertainty. Oddly, when the democrats have controlled the house during a republican administration, they have acted as responsible adults trying to negotiate a solution that creates certainty for the markets. When the republicans have controlled the house during a democratic administration they have gone to great lengths to create uncertainty and chaos. Biden does not own this inflation, the republican house of representatives owns this inflation!

[SSHoya]

"Never argue with a fool as they may take you down to their level and beat you with experience."

MAGA GOPers - immune to facts and reason. That's why the "Republican Party" is really a cult.

[happyhoya1979]

Nov 2, 2024 10:21:07 GMT -5 bicentennial said:

I'm not an economist but as I understand it when a government prints money it devalues its currency relative to other countries currencies so if there is high world wide inflation printing money would bring more of that inflation to the US. When a government does not print money but borrows money with a plan of how they pay that money back, there is less of an effect on inflation. When a government borrows money but has no plan for how to pay it back, it causes uncertainty in all the markets including stocks, bonds, futures, options and international currency.
When the house of representatives has repeatedly threatened to force the United States to default on its debts by refusing to allow increases in the debt ceiling and by not creating a funding plan for the government, they create that same chaotic uncertainty. Oddly, when the democrats have controlled the house during a republican administration, they have acted as responsible adults trying to negotiate a solution that creates certainty for the markets. When the republicans have controlled the house during a democratic administration they have gone to great lengths to create uncertainty and chaos. Biden does not own this inflation, the republican house of representatives owns this inflation!

So who is responsible for the relatively benign inflation of the previous 12 Obama and Trump years? Who gets the credit? There is a very good argument for Obama on his watch.

Why did inflation come back when Biden took office? Bad luck? corporations suddenly engaging in price gouging? a Federal Reserve gone rogue?

[hoyajinx]

Nov 2, 2024 10:25:38 GMT -5 SSHoya said:

"Never argue with a fool as they may take you down to their level and beat you with experience."

MAGA GOPers - immune to facts and reason. That's why the "Republican Party" is really a cult.

Apparently, in some notable cases, reading The Economist isn’t the same as understanding The Economist.


I’ll repost this here:

www.economist.com/leaders/2024/10/17/americas-economy-is-bigger-and-better-than-ever?utm_medium=affiliates.offer.pd&utm_source=partnerize-viglink&utm_campaign=a.july_2024_non_apac_lp&utm_content=conversion.direct-response.non-subscriber.partnerize_generic&utm_term=1011lzRwsuKN&partnerize_clickref=1011lzRwsuKN

[SSHoya]

RIF (Reading is Fundamental). Multifactorial causes of inflation but such moderate complexity is oftentimes too difficult for some to grasp, especially if you are of the Stephen Moore approach which puts politics over economics, and memory holes the pandemic whenever possible.

President Joe Biden and former President Donald Trump traded barbs about the U.S. economy during their first presidential debate.

Trump said Biden caused high pandemic-era inflation, which surged right after Biden took office.

Neither Biden nor Trump is to blame for much of the inflation, however, economists said: The Covid-19 pandemic, Russia’s war in Ukraine and Federal Reserve policy mishaps were beyond their control.

However, some of their policies likely played a role, too, economists said.

Global events beyond Trump’s or Biden’s control wreaked havoc on supply-and-demand dynamics in the U.S. economy, fueling higher prices, economists said.

In my view, neither Trump nor Biden is to blame for the high inflation,” said Mark Zandi, chief economist at Moody’s Analytics. “The blame goes to the pandemic and the Russian war in Ukraine.”

The big reasons inflation spiked:

Inflation has many tentacles. At a high level, hot inflation is largely an issue of mismatched supply and demand.

www.cnbc.com/2024/07/03/is-inflation-bidens-or-trumps-fault-the-answer-isnt-so-simple.html

[SSHoya]

Some economists who spoke to ABC News took issue with the blame placed on President Joe Biden as an overstatement of his role in the price spike. Instead, they said, the bout of rapidly rising prices emerged from a supply shortage imposed by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.

Pandemic-era spending measures enacted by former President Donald Trump and Biden also contributed to the price spike, the economists added, but they differed on the share of responsibility that should be apportioned to each of the major party candidates.

"There's a long list of reasons for the high inflation. At the top of the list is the pandemic and the Russian war," Mark Zandi, chief economist at Moody's Analytics, told ABC News.

Some of the inflation owes to the $1.9 trillion American Rescue Plan signed by Biden in 2021, Zandi said. But, he added, "It's at the bottom of the list."

The most important factor for inflation is the recovery from the pandemic," Jeffrey Frankel, an economist at Harvard University, told ABC News. "The process of coming back took longer than expected, in particular the supply constraints."

abcnews.go.com/Business/republicans-rnc-blame-biden-inflation-economists-misleading/story?id=112022864

[SSHoya]

Here's the BLS analysis.

As the labor market tightened during 2021 and 2022, core inflation rose as the ratio of job vacancies to unemployment increased. This ratio is used to measure wage pressures that then pass through to the prices for goods and services. As workers bargain for better pay, firms begin to increase prices. So, from this research, the authors find that three main components explain the rise in inflation since 2020: volatility of energy prices, backlogs of work orders for goods and service caused by supply chain issues due to COVID-19, and price changes in the auto-related industries.

www.bls.gov/opub/mlr/2023/beyond-bls/what-caused-inflation-to-spike-after-2020.htm#:~:text=So%2C%20from%20this%20research%2C%20the,in%20the%20auto%2Drelated%20industries.

[SSHoya]

It seems all reputable economists assign the pandemic and supply chain issues a significant role in inflation. If you are a cultist, you memoryhole both January 6th and the pandemic. Ben Bernanke's opinion via Brookings:

They find that many forecasters, including those at the Federal Reserve, anticipated that inflationary pressures arising from the large fiscal packages in the U.S. would appear primarily in the labor market, as increased demand for workers put upward pressure on wages and, ultimately, prices. In fact, most of the rise in inflation in 2021 and 2022 was driven by developments that directly raised prices rather than wages, including sharp increases in global commodity prices and sectoral price spikes driven by a combination of pandemic-induced kinks in supply chains and a huge shift in demand during the pandemic to goods from services. Fiscal policy contributed to the inflation, but primarily through its effects on consumer demand for commodities and goods in limited supply rather than through the labor market.

www.brookings.edu/articles/what-caused-the-u-s-pandemic-era-inflation/

[SSHoya]

Nov 2, 2024 9:40:49 GMT -5 happyhoya1979 said:

In January 0f 2021 the prime rate stood at about 3.25% and the rate on a 30year mortgage stood at 2.96%. Today those rates in three and a half short years have gone up to about 8% and 7% respectively because of the inflation of the Biden-Harris era. That is 246% and 236% respectively. Since most people spend the largest portion of their earnings on housing and cars these encapsulate the living hell we have experiences and are experiencing and that began on January 21, 2021. The under 35 age bracket in particular has been the victims of this devastation.

30-year and 15-year mortgage rates both below 7 with 15-year at 5.99%. Facts are facts. I bought my first house at 13% in the first Reagan (now would be called a RINO) Administration !! Living hell? Histrionic personality disorder? 😀

www.freddiemac.com/pmms