There are no policies that can fix it at this point. The only way to slow inflation is a serious recession and even that might not work.

3% is the new 2%. It's the norm now. It will quietly be the new fed target inflation rate going forward.

Sorta, we have spent so much money we don't have, and committed ourselves to it in perpetuity... it's basically baked in at this point.

Unless you are talking about completely tearing down the social safety net, that apparently we refuse to do, then this is it. Don't get me wrong, I think we absolutely need to do it, but we don't have the political stomach to even talk about it. Even Trump attacks those who bring up the bare minimum of things we could do to address it, much less anyone on the left.

Yukon Cornelius said:

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Not true. There's a very simple policy.

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which is?

rocky the dog said:

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That is funny, but it's sad how true to real life that is.

Kind of like the 'Inflation Reduction Act' which added 800 billion to the deficit.

"Unexpectedly" is now a joke. If I'm a reporter, I would never use that term again!

I was told several months ago by one of the EV fan boys on here that abnormally high inflation was over. He did some common core math and said it was impossible not to get to 2% soon.

He never shows up to these threads anymore.

Aggie95 said:

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There are no policies that can fix it at this point. The only way to slow inflation is a serious recession and even that might not work.

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Yep. The fed has painted itself into an impossible corner. Raise rates to slow inflation, and interest payments on the national debt go through the roof. Leave rates the same, inflation continues to move higher.

All they have now is threats of raising the rates in hopes that is enough to slow growth. It's a nasty dilemna of their own making, and it's going to hurt every American over the next few years.

oh no said:

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this seems impossible. our government passed the inflation reduction act a while ago.

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Imagine how bad it would have been without that

How many dollars have been printed since 2020?

cevans_40 said:

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oh no said:

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this seems impossible. our government passed the inflation reduction act a while ago.

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Imagine how bad it would have been without that

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or if they used REAL inflation numbers and not government inflation formulas that paint the best possible picture.

Ag87H2O said:

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Aggie95 said:

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There are no policies that can fix it at this point. The only way to slow inflation is a serious recession and even that might not work.

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Yep. The fed has painted itself into an impossible corner. Raise rates to slow inflation, and interest payments on the national debt go through the roof. Leave rates the same, inflation continues to move higher.

All they have now is threats of raising the rates in hopes that is enough to slow growth. It's a nasty dilemna of their own making, and it's going to hurt every American over the next few years.

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No mistakes have been made, this was all intentional....

Everything has gone according to plan

This is the failure of Keynesian economics. It works... in theory... just like Communism works... in theory. In practice, it is untenable because it requires that politicians act against their own best interests.

Phatbob said:

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This is the failure of Keynesian economics. It works... in theory... just like Communism works... in theory. In practice, it is untenable because it requires that politicians the entire population act against their own best interests.

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FIFY

Aggie95 said:

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Yukon Cornelius said:

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Not true. There's a very simple policy.

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which is?

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Return to an actual US dollar. Which hasn't been made since 1971. What we use today is a federal reserve note. All debt is denominated in it. Reinstate US dollar and pay down debt with worthless fed note. Problem solved.

The ONLY way out is more production. If there is more available on purchase Vs the available money supply, prices will stop inflating. Deregulation could help this considerably.

Nope. It's a money problem. Not a production problem. You can't produce enough to outpace the money problem (infinite creation).

MouthBQ98 said:

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The ONLY way out is more production. If there is more available on purchase Vs the available money supply, prices will stop inflating. Deregulation could help this considerably.

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The two means of controlling this are either overproduction or rate increases or a combo of the two. (Ignoring moving out of fiat and back to gold)

The problem is with margins so thin already noone wants to overproduce and through increased competition decrease their margins further or worst case scenario not be able to sell the stuff they just spent an arm and a leg producing because consumers don't have any money to spend.

Rate increases make the problem worse because it restricts available capital AND makes capital expenditures to produce even less appealing.

The only true way out of this is to take our medicine and then innovate our way out of it like the 1980's.

Ag87H2O said:

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Aggie95 said:

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There are no policies that can fix it at this point. The only way to slow inflation is a serious recession and even that might not work.

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Yep. The fed has painted itself into an impossible corner. Raise rates to slow inflation, and interest payments on the national debt go through the roof. Leave rates the same, inflation continues to move higher.

All they have now is threats of raising the rates in hopes that is enough to slow growth. It's a nasty dilemna of their own making, and it's going to hurt every American over the next few years.

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Don't forget about banks. There's a day of reckoning coming for them if rates are held, as they should. Go the Volcker route and kill inflation once and for all, and there's a serious debate to be had there, and you hasten bank failures.

Yukon Cornelius said:

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Nope. It's a money problem. Not a production problem. You can't produce enough to outpace the money problem (infinite creation).

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They can't claw back the money they created already. Yes, they can stop making the problem worse by creating more dollars, but to undo the damage already done, the only solution is to apply those existing dollars across more output.

Owlagdad said:

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Quick trip to Olive Garden:at granddaughters request for good report card. $60 for two build your own pastas and a childs plate. Drank water..
We talking pasta and sauce and Italian sausages that are half size they used to be. .
Never again.

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Food truck gyro, fries, and baklava = $18
Chopped beef BBQ sandwich, Cole slaw, chips, and drink = $18
Wendy's for 2 = $21

It's unsustainable. More local businesses will be failing.

See above. You don't need to claw it back. Just return to actual US dollar. Pull a bill out of your wallet. No where on it will it say US dollar. Why? Because it's not a US dollar. We just need to start using US dollars again. And it's easy because debt is denominated in federal notes. Which will become worthless and easy to get to pay off debt.

It's incredibly easy and simple to fix. That's not the problem. It's that no one in position has any interest in fixing it.

Ags4DaWin said:

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The question is

WTF would they leave food and fuel, the two biggest expenditures of consumers outside of housing out of the consumer price index?

Because to include those would force them to tell the truth.

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This. It's a con game and an election year.

Aggie95 said:

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There are no policies that can fix it at this point. The only way to slow inflation is a serious recession and even that might not work.

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Raise rates and/or gut spending. Its easy to say no policies when we have not tried them all