Economy

Last edited Mon Jan 10, 2022, 06:28 AM - Edit history (3)

people working in 2021 on average than 2020. And creating money out of thin air to buy $1.4 trillion/year of bonds to artificially suppress interest rates. Which stimulates the stock market and corporate profits (their debt is cheaper to finance), and thus more income from dividends and capital gains.

And stimulus financed with $3 trillion deficits that we and future generations will be paying interest on forever.

Yeah yeah, inflation will make a given dollar of debt less burdensome. But interest rates will rise along with inflation -- from what I've read, there is a consensus that using inflation to try to cure a national debt problem doesn't work

"And in the December job report from the Dept of Labor there was a good jump in wages, more than inflation."

How do you know what the December inflation number is?

Real average hourly earnings of production and non-supervisory workers http://data.bls.gov/timeseries/CES0500000032
was down 1.5% from November 2020 to November 2021.

As for the change in nominal earnings from this November to December (since we don't have the inflation-adjusted numbers yet from the BLS because we don't have the December CPI number yet), http://data.bls.gov/timeseries/CES0500000008 it was +0.68% (8.5% annualized)

Compare to the CPI: From October to November (the latest 2 months with data available): +0.78% (9.8% annualized)
https://data.bls.gov/timeseries/CUSR0000SA0

I gotta tell you, I know of nobody who lived during that time that wanted to go back to it. Wages were lagging far behind inflation (set the start time to 1970 or before) -- http://data.bls.gov/timeseries/CES0500000032

And I haven't heard of many people in high inflation countries doing well -- other than some clever rich people. Certainly not the majority of the people.

And the renters are not exactly the rich bankers.