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Just an utterly absurd statement, the exact opposite of the truth. Current price increases are due to things like "not enough computer chips", which have absolu

Just an utterly absurd statement, the exact opposite of the truth. Current price increases are due to things like "not enough computer chips", which have absolutely nothing to do with Biden's policies. To the extent that any government action drives wages up, it would cause decreases in inequality, not increases. I honestly feel sorry for people who have their brains damaged by reading nonsense from the WSJ.

mythrwy 5y ago
It's not completely "Biden's" policies (the federal reserve is not Biden) but inflation is being driven by much more then lack of computer chips. And to some extent it is deliberate. Inflation is a way governments can borrow money at one valuation, pay it back at another lower valuation. And it helps smooth over rough patches in things like public sector pension funds (at the expense of those who were expecting to receive pensions with a different buying power then they receive). Some amount of controlled inflation helps move the economy along. Complete lack of inflation usually means no growth. But it's always a transferal of real wealth from one group to the other.
- imtringued 5y ago
  > It's not completely "Biden's" policies (the federal reserve is not Biden) but inflation is being driven by much more then lack of computer chips. And to some extent it is deliberate. It's not driven by the federal reserve because they filled up bank reserves and dropped interest rates a long time ago. Biden is a factor because he is restoring consumer confidence but that alone isn't enough, it would only explain roughly 2-3% of the inflation numbers. The BLS CPI shows 2.4% inflation for food 25% for energy and 3% for everything else (apparently cars are a big driver of prices). Total inflation is 4.2%. It's definitively related to the transportation industry. Having no chips to build new cars is clearly a bad thing and something weird is happening with gasoline. This is not good in the short term but there is also absolutely no reason for it to remain like this in the long term. i.e. hyperinflation is a risky bet unless China or Russia attack semiconductor fabs or major oil suppliers
  - mythrwy 5y ago
    Housing. Also "if numbers are to believed". Recommend to watch the Drukenmiller interview in my other comment below. (https://twitter.com/i/status/1393965498618978308 https://twitter.com/i/status/1393965498618978308) Hyperinflation is unlikely in the short run because historically the bubble deflates rapidly before it occurs. If that happens what do we suppose the fed and Biden administration will do? Then maybe we see more inflation then can reasonably be expected in the short term.

mythrwy 5y ago

It's not completely "Biden's" policies (the federal reserve is not Biden) but inflation is being driven by much more then lack of computer chips. And to some extent it is deliberate. Inflation is a way governments can borrow money at one valuation, pay it back at another lower valuation. And it helps smooth over rough patches in things like public sector pension funds (at the expense of those who were expecting to receive pensions with a different buying power then they receive). Some amount of controlled inflation helps move the economy along. Complete lack of inflation usually means no growth. But it's always a transferal of real wealth from one group to the other.

imtringued 5y ago
> It's not completely "Biden's" policies (the federal reserve is not Biden) but inflation is being driven by much more then lack of computer chips. And to some extent it is deliberate. It's not driven by the federal reserve because they filled up bank reserves and dropped interest rates a long time ago. Biden is a factor because he is restoring consumer confidence but that alone isn't enough, it would only explain roughly 2-3% of the inflation numbers. The BLS CPI shows 2.4% inflation for food 25% for energy and 3% for everything else (apparently cars are a big driver of prices). Total inflation is 4.2%. It's definitively related to the transportation industry. Having no chips to build new cars is clearly a bad thing and something weird is happening with gasoline. This is not good in the short term but there is also absolutely no reason for it to remain like this in the long term. i.e. hyperinflation is a risky bet unless China or Russia attack semiconductor fabs or major oil suppliers
- mythrwy 5y ago
  Housing. Also "if numbers are to believed". Recommend to watch the Drukenmiller interview in my other comment below. (https://twitter.com/i/status/1393965498618978308 https://twitter.com/i/status/1393965498618978308) Hyperinflation is unlikely in the short run because historically the bubble deflates rapidly before it occurs. If that happens what do we suppose the fed and Biden administration will do? Then maybe we see more inflation then can reasonably be expected in the short term.