"Uncomfortable” inflation coming

DEFCON Warning System

Director
Staff member
On June 7, Deutsche Bank issued its first report of the new series, titled “Inflation: The defining macro story of this decade.”

According to the report, “US macro policy and, indeed, the very role of government in the economy, is undergoing its biggest shift in direction in 40 years. In turn we are concerned that it will bring about uncomfortable levels of inflation.”

That could be deemed an understatement considering that the U.S. economy is already experiencing “uncomfortable” inflation.

Consider: Based on the most recent inflation report from the U.S. Bureau of Labor Statistics, “In April, the Consumer Price Index for All Urban Consumers rose 0.8 percent on a seasonally adjusted basis; rising 4.2 percent over the last 12 months.”

An annual inflation rate of 4.2 percent is more than “uncomfortable.” But the looming threat of inflation seems to have fallen on deaf ears in Washington, D.C., over the past year, as Congress has supercharged spending to levels unseen since World War II.

Looks like the U.S. is heading for...troubled times if things continue.
 

Obreid

Power Poster
I saw that article, it was interesting the German main bank focused so heavily in post WW2 inflation spending by the US. And only passing mention of pre-way deficit spending of Germany.
like they were in some way equivocal. They sure had different results.
The admin sure does seem hell bent on a one two tax on people though.
Deficit spending with tax increases.
that’s like saying we’re going to give you money but don’t worry we’re going to raise your taxes to cover it.
That’s some living color circular logic.
 

Saguenay

Member
The Group of Seven (G7) is a discussion and economic partnership group of seven countries known in 1975 to be the greatest advanced powers in the world which hold about 2/3 (66%) of the world's net wealth then 45% in 2019: Germany, Canada, United States, France, Italy, Japan and United Kingdom.

The BRICS (Brazil, China, Russia, South Africa, India)
have taken a good share of the market in less than 50 years.

The G7 has become a symbol only.
 

Obreid

Power Poster
Not sure how this is related in terms of US inflation. The BRICS currently hold about 33 % gdp vs 43% for g-7.
to think that developing countries wouldn’t grow more quickly and achieve a larger portion of the pie is not logical.
Hasn’t that always been the above board stated goal. To help developing countries grow.
if I’m facts the 2014 unforced error by the G-7 in kicking Russia out of the G-7 and this would t even be a topic of conversation.
it is and the west handling of Ukraine Vs Russia for last 20 years was a the cause of this error by not necessarily economic.
Economic dominance is controlled by numerous inputs from resources to Ed levels to laws tax and fiscal policy, transparency military strength quality of product skill of economic espionage

Not just who can crap out more widgets at a better price than the other.
And what does the BRICS vs G-7 have anything to do with US inflation?
 

DarkNoon

Power Poster
Well the inflation will die down and prices will go back to normal. This was 100% expected as the economy opens.

Shortages, disrupted supply chains, worker shortages, and other factors such as business trying to make up money from the pandemic depression that was lost are all leading to a TEMPORARY rise in prices all around.
 

DarkNoon

Power Poster
Can also thank good old greed. Another factor is just good old American opportunism. Amercians are finally getting out, working, and doing stuff in great numbers and businesses/corporations are happy to charge everyone along the way just a little more because people have been pent up for so long and are willing to pay whatever to get out and have fun.

But the business boom and consumer boom will level out and when it does you can expect prices to drop back down.

Research well respected professionals with decades of trade under their belt (not someone who "thinks" they know economics online with not much credibility or history) and they will tell you the same. It's nothing alarming at all and once the consumer boom levels out so will the prices.
 
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