tag:blogger.com,1999:blog-6616959642391988608.post9204099108773558934..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Inflation update: this is seriousScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6616959642391988608.post-40838957614974668292021-09-11T22:09:32.988-07:002021-09-11T22:09:32.988-07:00The statistics are misleading and underreport infl...The statistics are misleading and underreport inflation. Inflation psychology suffers from worse misinformation than masks and vaccines do. You are late to the party. There are reasons that gold is almost $2k/oz. But better late than never.Rbar EI readerhttps://www.blogger.com/profile/00245577165844628958noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-5520287503370654342021-08-31T04:10:09.450-07:002021-08-31T04:10:09.450-07:00Apple (AAPL) now has a $2.5 trillion market cap.
...Apple (AAPL) now has a $2.5 trillion market cap. <br /><br />In a world of supply shortages and pandemic. <br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-38758481442675692672021-08-30T06:14:51.927-07:002021-08-30T06:14:51.927-07:00File under: What did they think was going to happe...File under: What did they think was going to happen?<br /><br />A government runs trillion dollar deficits using fiat currency backed by fairy dust and colorful unicorn droppings. The same elected officials of that government then voluntarily shut down their own economy while temporarily sending out more and more free fairy dust/unicorn dropping based dollars to all of their constituents (read: Packardhttps://www.blogger.com/profile/15970629043766004173noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-49851700213619061572021-08-29T18:25:18.802-07:002021-08-29T18:25:18.802-07:00"If the government continues to pass multi-tr..."If the government continues to pass multi-trillion spending increases, then we'll have long-lasting inflation."<br />That may be, in fact, a paradoxical situation. There has to be a point-of-no-return whereby the inflation genie will leave the bottle but large-and-advanced-economies countries are discovering the absence of significant constraints in this ultra-low interest rate Carlhttps://www.blogger.com/profile/01792779708580094262noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64500627287250717662021-08-29T14:55:02.615-07:002021-08-29T14:55:02.615-07:00Case Schiller hockey stick and approaching housing...Case Schiller hockey stick and approaching housing bubble YOY change.<br /><br />https://1.bp.blogspot.com/-YsXRQwtp0ec/YQAFRuGOJ3I/AAAAAAAA6VY/58aXRwvQvM8yzA9XWk0ducWwxUOY-3P7QCLcBGAsYHQ/s1020/CSYoYMay2021.PNG<br /><br />https://www.calculatedriskblog.com/2021/08/schedule-for-week-of-august-29-2021.html<br /><br />Ataraxiahttps://www.blogger.com/profile/06890889962572151036noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-66930901694502454992021-08-29T12:35:58.165-07:002021-08-29T12:35:58.165-07:00"Productive animal spirits, where are you?&qu..."Productive animal spirits, where are you?"<br /><br />1. for consumers/household sector, buying a home is the biggest financial decision most make. The new homes built/capita has been declining for about 30 years, which coincides with the decline in durable goods.<br />2. People in general, and consumers specifically tend to have "animal spirits" when they perceive not only wkevinwhttps://www.blogger.com/profile/17600473578823788550noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-57410630641644220032021-08-29T05:59:21.231-07:002021-08-29T05:59:21.231-07:00The 'money demand' or the inverse of '...The 'money demand' or the inverse of 'money velocity' discussion is interesting and begs the following question: do productive people really want or need all this excess money?<br /><br />The excess savings resulting from the short term public debt to money swap has been concentrated in the high net worth individuals' bank accounts (this is not mentioned for the inequality Carlhttps://www.blogger.com/profile/01792779708580094262noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-48436324183742689572021-08-28T15:32:18.265-07:002021-08-28T15:32:18.265-07:00Peter: the velocity of money is indeed a crucial v...Peter: the velocity of money is indeed a crucial variable (velocity of money = GDP/M2). However, I prefer to look at the inverse of velocity, which is the demand for money (demand for money = M2/GDP) since I think it makes it easier to understand what is going on. The velocity of money is near an all-time low, and the demand for money is near an all-time high. <br /><br />My thesis has long been Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22152746862124058122021-08-28T13:38:57.410-07:002021-08-28T13:38:57.410-07:00Following up on the other comments--Scott, I hear ...Following up on the other comments--Scott, I hear you on the risk of inflation, but you yourself have discussed the velocity of money and its role in the money supply. Velocity remains at historic lows. The Fed and the government can flood the economy with money, but if consumers don't use it to spend, where is the (excessive) demand that fuel higher inflation permanently? Thanks. Peter B.Peter Barneshttps://www.blogger.com/profile/14198681698219984677noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79035655741691414482021-08-27T20:42:59.904-07:002021-08-27T20:42:59.904-07:00Cost push and inelastic supply curves, just in tim...Cost push and inelastic supply curves, just in time supply chain shortages. Demand pull - direct stimulus payments, child tax credits, increased food stamp budgets and extra federal unemployment insurance to consumers. Money supply... Inflationary pressures from all directions.Ataraxiahttps://www.blogger.com/profile/06890889962572151036noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-47193825557091676522021-08-27T17:52:03.064-07:002021-08-27T17:52:03.064-07:00Certainly housing cost inflation is deadly serious...Certainly housing cost inflation is deadly serious and a topic that remains off the radar for most macroeconomists. The solution is simple: end property zoning and other government control of private property.<br /><br />Wage inflation? Have to wait and see on that one. It's been a long time since the American labor force had much leverage (unlike property owners). Q2 unit labor costs were Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com