Inflation Near 40-Year High Shocks Americans, Spooks Washington Already-hot inflation is forecast to climb even further when November data comes out on Friday, to 6.8%. That would be the highest rate since Ronald Reagan was president in the early 1980s -- and in the lifetimes of most Americans. Higher prices helped deliver a banner year for U.S. business, which is posting its fattest profit margins since the 1950s. But for Joe Biden’s administration and Jerome Powell’s Federal Reserve -– which didn’t see it coming -- the sudden return of inflation, largely dormant for decades before 2021, is looking increasingly traumatic. It’s likely to drive some big changes in the coming year, as the Fed pivots toward raising interest rates and the president heads into midterm elections with slumping approval ratings. How did it happen? Essentially, the pandemic made it harder for the world to produce stuff and move it around. The government shored up incomes in the crisis like never before, so households remained eager to spend. And a combination of lockdowns and Covid caution meant their purchasing power was focused on consumer goods instead of services.
Runaway... A small economic downtown will be the straw.. inflation is theft... A flight to real assets and out of currency then crack up boom. I hope not....
How did it happen? Pull up a chart of retail sales, in 2020 it dipped then exploded away from the long-term gradual growth trend. After a decade of trying the bastards finally managed to overheat the economy.
Crazy how a 40% increase in money supply over the last 18 months has lead to more than "transitionary inflation"... who would of thought..
Inflation surged 6.8% in November, even more than expected, to fastest rate since 1982 Inflation rose 6.8% from a year ago in November, slightly higher than estimates according to the consumer price index released Friday. Excluding food and energy, the CPI increased 4.9%, in line with expectations. Surging prices for food, energy and shelter accounted for much of the gains.
Hot November inflation report was probably the best the White House could have hoped for at this point