You are viewing a single comment's thread from:

RE: Let's Talk Inflation, The Fed and The Markets

in LeoFinance • 3 years ago

Inflation is not under control, I was with u 💯 until they last part. Rates are still negative at 4% given CPI is higher. It’s a totally fake market for over a decade plus and the pain is not avoidable. I agree with u on much but no inflation isn’t under control. Energy prices this winter will be insane and even with a lower CPI of that’s the case it won’t be stable for years.

Sort:  

Inflation is a side effect of printing money, correct? Since they have stopped printing so much, as quickly, the rate at which the supply dilution is happening is slowing. This is evident in the M2SL charts (M2 Money Supply) which have shown a tapering and plateau. No more stimulus bills have been passed recently, they stopped the assistance programs and supplemental checks.

It may not seem like it considering most prices are still higher, and they will remain high. Inflation is a rate at which things are moving up, remember, it is not the prices that we are paying. Also with oil barrel prices plummeting to below $80 a barrel from where it peaked at $129 will have a dramatic effect on the bottom line for pricing moving forward since transportation is one of the largest costs for consumer goods.