patrick.net

I like the Chevy Bolt.
I might buy one someday if I decide I have reached geezer status and don't like driving much.
In Florida electric rates are 1/3 those of California so it's very economical to drive.

Patrick says

If salaries go up, then housing prices will probably go up too.

I think that's called "wage push inflation", but I'm not sure. We had it in the 70's starting in 1974 when about every 18 months we'd get what was called a "blanket" raise where everyone in the company got about 8% or 9% increase to keep up with inflation. In 1976, I had a merit raise and a blanket raise come into effect on the same check and I thought, I'll never need a raise again. In three months a rent increase wiped it out. Employers have gotten wise, now, don't do many of those anymore.

NDrLoR says

Employers have gotten wise, now, don't do many of those anymore.

Yep, nowadays you pretty much need to jump ship for a raise.

https://m.theepochtimes.com/inflation-overtakes-ccp-virus-as-biggest-risk-for-investors-bank-of-america_3737610.html

Inflation is now investors most pressing concern.

FuckCCP89 says

Yep, nowadays you pretty much need to jump ship for a raise.

only avg, joes.
High performers at successful companies get high boni, RSU's and nice pay raises. That's what I got for last years performance plus work from home.
Have to admit, the company also had its best year in 2020 in its history.

FuckCCP89 says

Yep, nowadays you pretty much need to jump ship for a raise.

It's been that way for decades.

Will inflation stop any chance of bubbles popping? House being a hard asset will increase from inflation countering any bubble popping and same with stocks? Maybe at worse the decreases we were expecting will be countered and stay flat.

What are you guys putting your money into as a counter?

Blue says

Patrick says

If salaries go up, then housing prices will probably go up too.

But I'm not too sure about salaries going up.

If Biden kept paying for not working, employers have to bump up the pay to get workers.

And they are. $7,500 bonus to drive a non-CDL van (3 rows) for airport transfers in Chicagoland. No one wants to work. Employers are paying you just to apply.

Servers aren't coming back to restaurants. Low wage labor doesn't have to go back to work (for now) if they were laid off. No incentive to do so. Won't change until the extra UE benefits go away. Otherwise expect long waits where low wage service labor is required as things get somewhat back to normal. The demand will outpace the staff available at a lot of establishments.

Dems cause hyperinflation, gov debt goes down, pay goes up more taxes, properties go up more taxes, stocks go up more taxes. Seems lile what they are trying to do but it's a dangerous game.

This woman has some good insights:

https://www.lynalden.com/may-2021-newsletter/

... at the end of a long-term debt cycle, debt levels get so large relative to the size of the economy that it becomes impossible to deleverage them nominally without crashing the economy, so instead the denominators are increased: the monetary base, the broad money supply, and nominal GDP with a significant inflation component. The mechanism to do this involves large monetized fiscal deficits, accompanied by a central bank willing to hold rates well below the prevailing inflation rate for a while, which effectively inflates portions of the debt away.

The alternative to this process is a deflationary economic collapse, which is a route that the public and policymakers around the world rarely if ever choose. In other words, when push comes to shove and the system is pushed to its limits, policymakers invariably print.

https://www.statista.com/statistics/1032048/value-us-dollar-since-1640/

You can play the EV market by buying Magna International. They are already profitable and makes parts for the EV market. Kinda like, don't bet on a particular country in the war, just the company building the bombs.

Bitcoin says

High performers at successful companies get high boni, RSU's and nice pay raises.

You're a unicorn then. The owners don't pass on the inflation gains this early in the cycle. Hence why I'll never work for someone else again, besides the customer for a business I own. Done working for others and they get the fruits of my labor. The owners are just another hand in the cookie jar that do dick for the money they get besides the risk. So I've decided to become the owner.

WookieMan says

Bitcoin says

High performers at successful companies get high boni, RSU's and nice pay raises.

You're a unicorn then. The owners don't pass on the inflation gains this early in the cycle

Good for you to be the owner. Agree, I wouldnt give out 6-8% across the board in pay raises just because inflation is running at 5% if i am the owner.

What i am talking about is high paying jobs at companies like in tech (shareholder owned corp). A director on avg makes about 250k. Does that person care if inflation is running at 2, 3 or 5%? I'd say not really. If your perform well its expected the company pays a raise above inflation. not to everyone, but to those that are rated highly (annually). The avg raises barely keep up with inflation.

Obviously it makes sense to incentivize high performers. They are harder to find/hire.

https://www.theepochtimes.com/mkt_breakingnews/annual-inflation-soars-to-5-percent-in-biggest-jump-since-2008_3852981.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Annual Inflation Soars to 5 Percent in Biggest Jump Since 2008
BY TOM OZIMEK June 10, 2021

Inflation took a fresh swipe at American consumers in May, with the consumer price index surging by 5 percent over the past year, the biggest annual spike in the measure since 2008.

Thanks, Joe!

If we get even a small amount of hyper inflation how does that work with fixed payments like pensions and social security? I would think pensions get fucked because they are locked to past income.

RC2006 says

If we get even a small amount of hyper inflation how does that work with fixed payments like pensions and social security? I would think pensions get fucked because they are locked to past income.

They are supposed to get COLA.

Patrick says

value-us-dollar-since-1640/

They didn't have to pay for car insurance or for dental checkups back in 1640. What we call the deeply impoverished in the inner cities of America would have a quality of healthcare and nutrition completely unavailable to even kings during the enlightenment.

No doubt we're fucked. We're all gonna die. But in the meantime we live in a land of milk and honey.

https://notthebee.com/article/ceo-of-grocery-chain-predicts-10-14-inflation-on-food-by-october-

Billionaire grocery CEO predicts 10-14% inflation on food by October 👀

Patrick says

Billionaire grocery CEO predicts 10-14% inflation on food by October 👀

jesus. My buddy who works in construction/landscape showed me some of his quotes. He gets materials below retail but his cost almost doubled on some items like drain pipes, fittings etc. Some of his subcontractors are backing out because they no longer make money on the original deal due to insane inflation.

https://www.westernjournal.com/bidens-america-american-wages-drop-nearly-2-inflation-spirals-control/?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Biden's America: American Wages Drop by Nearly 2% as Inflation Spirals Out of Control

https://www.washingtonexaminer.com/opinion/editorials/voters-are-rightly-blaming-biden-for-inflation

HunterTits says

..because the government doesn't count food (nor rent nor gas/diesel) prices in their bullshit inflation statistics.

Are there other inflation metrics that do include these?

I can imagine them maybe doing something to reduce the impact of price volatility of certain things, like maybe averaging the price over some time window.

https://notthebee.com/article/completely-transitory-nothing-to-worry-about-inflation-forecast-for-the-fourth-quarter-more-than-doubled-by-white-house

https://nltimes.nl/2021/09/01/entrepreneurs-avoiding-negative-interest-opening-multiple-bank-accounts

WEDNESDAY, SEPTEMBER 1, 2021 - 10:00
SHARE THIS:
Entrepreneurs avoiding negative interest by opening multiple bank accounts
Smaller entrepreneurs in the Netherlands are trying to avoid negative interest on savings by opening new accounts with different banks, Financieele Dagblad reported after speaking to Dutch banks. Various banks introduced negative interest rates on larger savings accounts over the past year

At most banks, savings accounts with balances above 100 thousand euros are charged negative interest. This means the account holder pays interest on their savings, instead of earning interest. For someone with 200 thousand euros in the bank, this could mean paying 500 euros in interest at the end of the year. To prevent this, entrepreneurs are now spreading their money over different accounts at different banks.

Oh great, surging inflation and negative interest rates.

All are racing to the bottom.

Intermediate short term $USD demand may take a measure of insignificant inflation "down" .
The finality of this week could pull the rug out from under inflation for the short term we should see
this in Friday's economical data... At the same time Ida is going to need lots and lots of $USDs to even
start recovery considering the power outages, business closures, unemployment etc. etc. etc. etc. etc.

https://www.theepochtimes.com/mkt_breakingnews/producer-prices-see-biggest-annual-surge-on-record-stoking-broader-inflation-concerns_3991094.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Producer Prices See Biggest Annual Surge on Record, Stoking Broader Inflation Concerns
BY TOM OZIMEK September 10, 2021

Producer prices rose at their highest annual pace on record in August and slightly above expectations, with the newest inflation-related datapoint likely to reinforce broader concerns about rising prices as higher production costs tend to trickle down to consumers.

https://www.theepochtimes.com/mkt_breakingnews/major-supermarket-chain-warns-inflation-is-about-to-impact-more-americans_3993473.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Major Supermarket Chain Warns Inflation Is About to Impact More Americans
BY JACK PHILLIPS September 12, 2021

An executive of Kroger, one of the largest supermarket chains in the United States, warned grocery prices are about to become even higher this year as inflation sets in.

Patrick says

An executive of Kroger, one of the largest supermarket chains in the United States, warned grocery prices are about to become even higher this year as inflation sets in.

Especially since transportation costs are going up with the price of fuel.

Joe Manchin D-W.V. says (just watched 1h ago on nbcnews meet the press Chuk Todd live OTA) its much more than $3.5T infrastructure bill he thinks about 5.5T now and as its sounds "dynamic" can be 8T+ that includes child care, medical coverage etc. in "infrastructure".
Also there was another news that unions made EV vehicles will carry an additional $5.5k credits!? part of the "infrastructure".
It sounds like they renamed entitlements to "infrastructure".
If Joe Manchin and few others can not stop, its a runaway inflation, perhaps it breaks all previous records.

I don't like to make money off it, but every time they pass one of these gargantuan bills, the stock market shoots up.

Maybe it's just inflation expectations being reflected in stock prices. In which case I'm not really making money off of them.

Inflation hitting food prices??? --- Why Biden will just have to increase the amounts being sent out in food stamps (already hit a new record high when he increased them this year).

---- Yes, politicians really think this way.

Patrick says

don't like to make money off it, but every time they pass one of these gargantuan bills, the stock market shoots up.

I’m betting on the market taking a substantial dip in the next month. This mandate crap is going to cause a lot of uncertainty and instability in both the workforce and companies as they are forced to fire their best talent. Or as their future becomes uncertain as they refuse to comply and fight the order in court. It’s going to hurt the economy either way.

As much as the fools fuck up things, consumers are not changing their ways.
Hood rats will fuck for cash to upgrade their iPhones, wage slaves will descend into the salt mines to pay for endless crap from Amazon and Walmart.
I’m retirement age and my stock allocation is 90%.
Damn the torpedoes, full ramming speed boys!
Each generation is lazier and more self absorbed; people are now paying others to deliver a coffee drink in addition to food and other stuff.
I guess I’m a dinosaur; I can make my own coffee and espresso drinks. I have the knowledge passed on to me.
The more they spend, the more your stocks will rise.

https://www.theepochtimes.com/mkt_breakingnews/inflation-to-rise-faster-than-previously-projected-oecd_4008124.html?utm_source=patrick.net&utm_medium=patrick.net&utm_campaign=patrick.net

Inflation to Rise Faster Than Previously Projected: OECD
BY TOM OZIMEK September 21, 2021

Let's go Brandon!