You are arguing across threads, this one is about inflation and you are talking about inequality... I will add my reply to the Great rest thread.


On the topic at hand...


www.theguardian.com/business/2022/mar/23/uk-inflation-highest-level-in-three-decades

THE RIDE NEVER ENDS!~

So TikTok is full of Zoomers resigning from their jobs because the payrises this year being offered are less than inflation, which they interpret as a pay cut.

It's a brave new world....
It entitled and stupid, but it's brave and new.

Cheerlead government bailouts and spending in successive administrations and then squeal like a stuck pig when it hits your wallet.
I suppose none of these degenerates see the irony in being anti capitalist and resigning over not getting enough money... I doubt it.

Why should they not resign from their jobs when jobs are starting at more money than they would get after the raise?  Not only are they getting raises after quitting, many are getting straight up promotions after quitting.

Seems capitalists want capitalism for goods but not for labor.

Apr 5, 2022 3:14:48 GMT c said:

Why should they not resign from their jobs when jobs are starting at more money than they would get after the raise?  Not only are they getting raises after quitting, many are getting straight up promotions after quitting.

Seems capitalists want capitalism for goods but not for labor.

No, not at all... Good on them, I believe in Capitalism and this is how it works.
The irony is people bitching about a 5% pay rise who are also anti-capitalist.

It's corporate greed to put prices up 7%, but it is also corporate greed to not put wages up 7%
But it is not greed to seek a 7% pay rise.
All I am asking for is consistency and less hypocrisy.

Apples and oranges really. Workers always asked for more pay and employees for less pay. They are the two fundamental forces of labor and where they meet is the price is labor.

Right now though it is not that they are asking for better pay, it is that employers are offering them more pay to come work for them with super high levels of headhunting in the US at least. Which is how the free market corrects for underpaid labor.  

And going forward it will only get worse as we add millions of jobs yearly to the market while the rate of new workers slow due to declining population growth rates.  And most workers are not on to the game that after five years you should yeet out of company since it provides better career growth.  

Gonna need a fuck for capitalism movement or something soon if people want the era of cheap labor back. Or let the illegals return to work, but even they are not really happy with wages and staying in Mexico where they are paid more than the US.

So for the greed question, they are not greedy as other companies are saying they are worth more and willing to pay them such.  Companies are greedy for trying to convince their employees that they are worth less than they are to underpay them.  Leaving for a higher paying job is not a matter greed, but of respect.

Ladies and gentlemen prepare your abuses for the upcoming release of the latest inflation numbers.
Biden has already announced a press conference to announce easing of pressures on costs of living... Which means it's going in dry

And it just dropped 8.5%
Highest numbers since 1981

But it's all spontaneous corporate greed manifesting.

Inflation report showed inflation is restricted to particular areas. Housing, energy, farmed goods and meat. Meat and farmed goods in the US are being examined for anti-competitive practices, housing and energy for price gouging. Pricing start to correct in unrelated areas, such as non food commodities and used car markets.

Bulk of inflation was the spike in energy prices that stayed high despite oil retreating.

Blackrock says to expect high interest rates for years to come.  Given they are one of the main people raising the interest rate should likely prepare to listen as they plan to aggressively increase renting prices to drive high returns on their rent back securities.   When they fail, which everyone expects them too, they are too big to fail and the US taxpayer will have to bail them out, and pay to let another investment firm take over the properties and continue the practice of real estate to back a security.  

Car debt backed securities seem to be failing to get over and may see a retreat from them in the near future. 

Main takeaway from the report is the meat industry is going to get more blowback.  They been on trial for price fixing but the judge on the current case says it is legal for a group of related industries to set common prices in advance and legal to lie about to the FBI if admitting the truth would put you in jail.  

Tyson meanwhile sees their CEO getting awards for generating 48% increased profits from his decision to aggressive increase the price of meat products, and let him competitors know in advance what he will price at so they can follow suit while telling shareholders consumers are just paying 30% more as that in inflation in action.

Corporate profits surged 25% this year. Largest increase in 50 years. Amazing, as I seem to remember something else happening when they price this aggressively in the past...

GOP struggling to twist this against dems after voting down relief measures, price control measures and things like caps on drug costs. Best they have is that Biden's COVID package triggered it, but Trump's package that was over twice as large had no impact whatsoever. People are not buying it outside of those that think Trump was hard on Russia.

But they are having serious problems pointing to the exact reason it is Biden's fault, when all their complaints were continations of programs that Trump supported, and often himself advocated for on Twitter before he was banned.

People keep claiming this is  the peak but I just do not see companies stopping.  Every report gives them the go ahead to raise prices again until we hit a recession.  Then they can claim loses and ask for a bailout, or readjust prices.  And rush to a recession seems to be what corporations and the GOP wants.  If they can trigger a recession before 2024 it gives them a huge campaign issue.  Corporations are seeing that people will pay higher prices, so they have no incentive to lower prices if demand is still stable using classical models they so love.  They know if things turn south, they will be bailed out, so they should profit while they can like this.

Also with no platform, the GOP has no answers to what they will do to combat inflation.  They claim increase reserve rates and the economy will collapse if people cannot borrow for near 0 interest.  Can't do anything about wages as the companies profiting the most are also increasing wages by simply rising prices at twice the rate of increasing costs.  Not gonna fix the supply chain without infrastructure spending, which they are again, and increasing the workforce requires addressing childcare.  Banning sex education seems to be their only real answer, but that will not impact the US for at least 15 years.

GOP also has a serious problem with the fact that inflation is crippling red states, while simply annoying in blue states due to social programs.

Unreal that gas was 50 cents a galleon under Trump and now over 4 dollars a galleon. I just cannot believe how bad inflation is.  Damn you Biden for sending troops into the Yom Kippur War.

Apr 13, 2022 4:43:39 GMT c said:

Corporate profits surged 25% this year. Largest increase in 50 years. Amazing, as I seem to remember something else happening when they price this aggressively in the past...

You still don't understand you can have push and pull inflation
Watch profit margins collapse in Q1 earnings figures.

c, tell me the one again about inflation being a result of corporate greed.
It doesn't matter if they push you off the cliff or pull, either way you're going splat:

www.cnbc.com/2022/05/17/stock-market-news-open-to-close.html

www.bloomberg.com/news/articles/2022-05-17/world-s-richest-family-loses-17-billion-in-walmart-wipeout


Starting to look ugly.
Stock market down 17% for the year with inflation still running away.
It's crazy to think we could wind up getting hyper inflation in developed economies.

www.cnbc.com/2022/05/18/uk-inflation-jumps-to-40-year-high-of-9percent-as-food-and-energy-prices-spiral.html

9% inflation in the UK

In Australia one of our largest building companies has died and another is teetering on the brink.
Anyone with fixed contracts on price in any market is likely to have their ass handed to them by inflation.

UK and the US both looking at the energy market for price gouging and the main driver of inflation right now is energy prices.

In the US the other drivers are the meat prices, which are being examining right now for anti-competitive practices and the housing market which is being fuel by rental backed securities.

Energy markets are reporting their most profitable years ever so of course this will effects the stock market. If people do not have money to buy things because their gas and electric bills have been skyrocketing, then a whole lot of companies are going to see profit drops.

And with people Coalfinger, energy markets can gouge the price all they want because they are untouchable due to congressional ties.

Anticompetitive behaviors are surely part of inflation but can't account for all of it. Manufacturing slowdowns and trouble transporting goods are a big deal.

Companies buying up houses to rent is a big deal. However, I think the biggest problem is the resistance of city halls and NIMBYs preventing new higher density in their precious single-family suburbs, constraining supply. If a real estate company can't build new apartments/condos, they're going to buy up what's available.

Yeah opposition to high density housing is the main driver of the housing crisis. Then of course the suburbs complain that "no one wants to work" when people no long commute to them for their jobs.

Transportation costs are leading to some increased prices, but if consumers do not have the money to buy said goods, then the price is ultimately meaningless. And the main things driving up inflation in the US, meat, energy, and shelter, are domestic, and the supply chain problems are international.

Favorable pricing markets are the main drivers of inflation since lack of competition allows companies to run wild with price increases.

With the GOP fueling fears of a gas shortages, and the expected hoarding, it is expected that gas will hit $6 a galleon. Somewhere between $5 and $6 a galleon will trigger a national recession.

Oil prices are steady at 110 barrel, what they were when the invasion started.  Yet here we are with pricing continuing to rise likely seeing a 100% increase by the end of this crisis, with no increase in oil prices.

There is a bottleneck now at refineries who are still blaming COVID for lack of employees, and refuse to fix or replace their aging and broken refineries because it will hurt their record profits levels.

May 19, 2022 8:25:12 GMT c said:

With the GOP fueling fears of a gas shortages, and the expected hoarding, it is expected that gas will hit $6 a galleon. Somewhere between $5 and $6 a galleon will trigger a national recession.

Oil prices are steady at 110 barrel, what they were when the invasion started.  Yet here we are with pricing continuing to rise likely seeing a 100% increase by the end of this crisis, with no increase in oil prices.

There is a bottleneck now at refineries who are still blaming COVID for lack of employees, and refuse to fix or replace their aging and broken refineries because it will hurt their record profits levels.

Maybe there is another reason why refineries won't spend money rebuilding their refineries.
Oil and coal are a political football and there is no certainty, without it there will be zero investment.

This is the problem today, everything is about optics.
It makes no sense to cancel the Keystone pipeline and then import more oil, it does nothing for climate change.

So the keystone pipeline when you get away from the environmental and Koch propaganda was really fucking weird. The plan was to pump diluted oil sand tar through the pipeline, as a really nasty dilbit oil, and it was developed in 2008 when the price of oil was sky high. By a few years after this was proposed oil prices dropped and most refineries abandoned plans to convert the dilbit as it costs more than to refining raw light crude and it was not as profitable, and it produces a ton of petcoke that is just a pain in the ass to deal with.  

So for a decade the refineries did not want the pipeline and had no plans to actually refine the oil sand without the US government paying them to do it, and offering to do the cleanup. But both Trump and Obama's DoE concluded that simply put, the pipeline was a bad idea in terms of economics even before you got into environmental costs.  Not sure what the Koch's end game was here.  The profit really only exists when heavy crude is is far cheaper than light crude on the commodity market, which has been rare in the past 20 years.


Oil tar refining, another crazy thing I learned about from modded minecraft...

www.actionforex.com/contributors/fundamental-analysis/444983-german-inflation-awakens-european-hawks-by-helping-the-euro/

It won't be long before the discussion of inflation is prefaced by the term "hyper"

Hyper is 100% over three years. We are nowhere near there. Nor are we anywhere near the classic hyperinflation events where prices doubled weekly. We have not even reached America in the 1970's levels yet.

www.reuters.com/business/finance/exclusive-credit-suisse-weighs-options-strengthen-capital-sources-2022-05-30/

Here we go...

Not sure how you can blame this on inflation and not piss poor management. The are routinely sued by the US for fraud and corruption, and had heavily invested in tech stocks without setting risk parameters.

Real talk should be companies basically bracing for recession now, and limiting expansion.  In the US it makes sense since the US taxpayer will compensate them for their losses with a bailout, they can use to invest.  But already saying next rate hike in the US should set off the recession despite our interest rates still being .5.  Even moving it to .75 should be enough to trigger it.  Companies realized the value of free money and want to force it to come back.  

May 31, 2022 6:42:51 GMT c said:

Not sure how you can blame this on inflation and not piss poor management. The are routinely sued by the US for fraud and corruption, and had heavily invested in tech stocks without setting risk parameters.

Real talk should be companies basically bracing for recession now, and limiting expansion.  In the US it makes sense since the US taxpayer will compensate them for their losses with a bailout, they can use to invest.  But already saying next rate hike in the US should set off the recession despite our interest rates still being .5.  Even moving it to .75 should be enough to trigger it.  Companies realized the value of free money and want to force it to come back.  

Buying assets at grossly overinflated prices and having the tide go out is exactly the sort of reckoning that comes with inflation.

But in other more Australian (and therefore more important) news... We is joining the party.


www.smh.com.au/politics/federal/the-devil-in-the-detail-of-gdp-figures-shows-the-inflation-winter-has-arrived-20220601-p5aq4w.html





Our energy costs are also going Bananas,:

www.abc.net.au/news/2022-06-01/australia-on-brink-of-energy-crisis/101115924

I feel like a song is in order...




Now keep in mind I called the inflation before it was even a thing.

Well that is what happens in communist countries.

www.usatoday.com/story/news/politics/2022/05/31/biden-interfere-federal-reserve-inflation/7454555001/

Kind of whoops

Should have started increasing the interest rate last year, but Chamber of Commerce was dead against it saying it would lead to a collapse of COVID recovery.

Jun 4, 2022 13:21:40 GMT c said:

Should have started increasing the interest rate last year, but Chamber of Commerce was dead against it saying it would lead to a collapse of COVID recovery.

And they were right... But doesn't mean they shouldn't have done it.
Seems recession is unavoidable because controlling inflation is going to take such a tug on the handbrake that the economy is likely to essentially stop. The underlying economy never really recovered from the GFC it's just been pushed up by the speculation that trillions of dollars washing through the economy creates.

Yeah, the GFC never had the speculative trading problems fixed either. Now there is just as much insane speculation going on without real value backing it and bubbles popping up everywhere. 0 interest rates also created an environment that discouraged companies from holding any cash so we had to give them a 3 trillion bailout in the US alone. Who knows what many got from other countries.

Seeing the corrections now though with tech crashing and crypto imploding. Housing is cooling and likely about to crash.

Jun 4, 2022 13:33:55 GMT c said:

Yeah, the GFC never had the speculative trading problems fixed either. Now there is just as much insane speculation going on without real value backing it and bubbles popping up everywhere. 0 interest rates also created an environment that discouraged companies from holding any cash so we had to give them a 3 trillion bailout in the US alone. Who knows what many got from other countries.

Seeing the corrections now though with tech crashing and crypto imploding. Housing is cooling and likely about to crash.

I can see the stock market correcting, the PE ratio is a straight indicator of value.
With housing, it's so hard to predict, there's no surplus of houses so it's all going to come down to the broader economy. If people can keep their jobs and service their debts then I expect pricing will just stagnate. If people are losing their jobs in large numbers and can't service their debt, then we get a glut of houses hitting the market at the same time and it starts to get way past ugly...

Really hard to tell anything because we have never been stupid enough to do this before.

This is MMT without anyone meaning to try it.