Business Inflation at Six-Year High, Eating Away at Wage Increases | Bloomberg

[Bladewire]

Under 8 years of Obama, the fed only increased interest rates 1 time.

Under Trump the fed has increased interest rates 6 times, so far, in the last 18 months.

Remember that constant rising interest rates was a predicted of the last financial crisis.

"A separate Labor Department report on Tuesday illustrated how higher prices are pinching wallets: average hourly wages, adjusted for inflation, were unchanged in May from a year earlier, even as nominal pay accelerated to a 2.7 percent annual gain from 2.6 percent in April. For production and nonsupervisory workers, real average hourly earnings fell 0.1 percent from a year earlier.

Seasonally adjusted gasoline prices rose 1.7 percent in May from the previous month, after a 3 percent gain in April."

As I've stated in many threads, inflation has wiped out all the average person gains in wages under Obama.

Under Trump food is more expensive, housing is more expensive, gas is more expensive and borrowing money is more expensive. This is before any tarrifs against the U.S. have taken effect, then prices for goods will increase exponentially.

This is great news for the 1% billionaires, not for the other 99% of us

#ThanksTrump

U.S. Inflation Accelerates to Six-Year High, Eroding Wages | Bloomberg

U.S. inflation accelerated in May to the fastest pace in more than six years, reinforcing the Federal Reserve’s outlook for gradual interest-rate hikes while eroding wage gains that remain relatively tepid despite an 18-year low in unemployment.

The consumer price index rose 0.2 percent from the previous month and 2.8 percent from a year earlier, matching estimates, a Labor Department report showed Tuesday. The annual gain was the biggest since February 2012 and follows a 2.5 percent increase in April. Excluding food and energy, the core gauge was up 0.2 percent from the prior month and 2.2 percent from May 2017, also matching the median estimates of economists.

The pickup in headline inflation partly reflects gains in fuel prices, though the annual gain in the core measure -- seen by officials as a better gauge of underlying inflation trends -- was the most since February 2017. While the Fed is widely projected to raise borrowing costs this week for the sixth time in 18 months, the path of inflation will figure into policy makers’ thinking on the pace of increases for the second half and in 2019.

The data “provide further evidence that inflation is moving towards the Fed’s objective,” and the central bank will continue on its gradual rate-hike path, said Kevin Cummins, an economist at NatWest Markets. The pay figures are “a reminder that you don’t need to necessarily get more aggressive in your approach because wages haven’t accelerated as much as they have in the past,” he said.

The Fed’s preferred gauge of inflation -- a separate consumption-based figure from the Commerce Department -- came in at the central bank’s 2 percent goal during March and April, and the figure tends to run slightly below the Labor Department’s CPI. At the same time, several Fed officials have indicated that a modest overshoot of the inflation goal wouldn’t necessarily warrant faster interest-rate hikes, after years of below-target price gains. Commerce Department figures released May 31 showed the Fed’s preferred gauge of core prices was up 1.8 percent in April from a year earlier.

A separate Labor Department report on Tuesday illustrated how higher prices are pinching wallets: average hourly wages, adjusted for inflation, were unchanged in May from a year earlier, even as nominal pay accelerated to a 2.7 percent annual gain from 2.6 percent in April. For production and nonsupervisory workers, real average hourly earnings fell 0.1 percent from a year earlier.

Seasonally adjusted gasoline prices rose 1.7 percent in May from the previous month, after a 3 percent gain in April.

The shelter category, which accounts for about one-third of the CPI, rose 0.3 percent from the previous month, continuing a trend of steady increases. Owners-equivalent rent, one of the categories designed to track rental prices, advanced 0.2 percent. Lodging away from home, which includes hotel and motel rates, rose 2.9 percent in May, the most since August.

Investors see the Fed as on track to raise interest rates at its two-day meeting that starts later on Tuesday in Washington, while policy makers will issue updated forecasts showing whether they expect one or two hikes in the second half. The unemployment rate fell to 3.8 percent in May, matching the lowest in 48 years and signaling the central bank is at or near its maximum-employment goal.

[GFED]

The Fed is responsible for inflation not any president. Fuck the Fed. Stack some silver. Stack some gold.

[beerptrol]

Fake news according to the chumpanzees. Rich are making out like bandits. The chumpanzees get a trickle down from the next sack of the rich and think they are doing better under Chump

[TheSquealer]

Trump cures cancer. Democrats denounce it and then accuse Trump of colluding with Cancer to influence the 2020 elections.

You guys are pure comedy gold.

The hate will destroy you.

[beerptrol]

Originally Posted by TheSquealer

Trump cures cancer. Democrats denounce it and then accuse Trump of colluding with Cancer to influence the 2020 elections.

You guys are pure comedy gold.

The hate will destroy you.

He couldn't cure his bone spurs, so spare us if he cured cancer bullshit

[onwebcam]

Originally Posted by Bladewire

Death to America!

FIXED

Remember when the Federal Reserve finally told the truth that they are a private bank and that the President and/or Congress has no control over them?

The Federal Reserve is THE globalist's tool.... They are doing what they can without breaking the bank to slow Trump's roll.

[TheSquealer]

Originally Posted by beerptrol

He couldn't cure his bone spurs, so spare us if he cured cancer bullshit

Sorry Bladewire, but crying and whining and negativity is why Democrats are not in government anymore. Refusing to understand that is why they won't be in government in the foreseeable future.

[PR_Glen]

Talk to some Canadians about inflation sometime. In the next few months our minimum wage will sky rocket to $15 an hour. $7 Big macs and 5 dollars a quart for milk are already here and the inflation is only getting started. Don't even get me started about the gas prices here.

[dyna mo]

I'm not quite buying it. get it, buying it, inflation....it's a pun.

inflation is difficult to measure and in fact the CPI isn't being calculated properly due to not counting ecommerce fairly. inflation could be much lower than what we're being told today.

[BaldBastard]

Originally Posted by dyna mo

I'm not quite buying it. get it, buying it, inflation....it's a pun.

inflation is difficult to measure and in fact the CPI isn't being calculated properly due to not counting ecommerce fairly. inflation could be much lower than what we're being told today.

.. or it could be much higher, did they count in the one-off bring back of offshore cash?

Here in Aus we basically have full employment, if you want a job it's there, wages are about 2x the USA so is the cost of living of course Unemployment ranges in the 5-6% level. USA claims its at 3.9%, Surly your panicking and opening the gates to immigrants?

[Bladewire]

When wages don't increase with inflation and loan rates are high a recession happens.

So we have deflection posts from Trump supporters.

The economy is something that should be discussed honestly, but I understand Trump supporters wanting to deflect from bad news.

We could have 100% employment but if people aren't making living wages and have no insurance because employers don't hire full time to avoid employee benefits then we're back where we were right before the last recession. Trump has gutted Obamacare so rates can skyrocket and become unaffordable for most.

[dyna mo]

Originally Posted by MrBaldBastard

.. or it could be much higher, did they count in the one-off bring back of offshore cash?

Here in Aus we basically have full employment, if you want a job it's there, wages are about 2x the USA so is the cost of living of course Unemployment ranges in the 5-6% level. USA claims its at 3.9%, Surly your panicking and opening the gates to immigrants?

repatriation of offshore cash is not included in the CPI calculation and I'm not panicking over anything, certainly not the economy or immigrants.

[RedFred]

Originally Posted by Bladewire

When wages don't increase with inflation and loan rates are high a recession happens.

So we have deflection posts from Trump supporters.

The economy is something that should be discussed honestly, but I understand Trump supporters wanting to deflect from bad news.

We could have 100% employment but if people aren't making living wages and have no insurance because employers don't hire full time to avoid employee benefits then we're back where we were right before the last recession. Trump has gutted Obamacare so rates can skyrocket and become unaffordable for most.

But Canada bad and North Korea and Russia good. That's all that matters.

[Matt-ADX]

Everyone but you in this thread bladewire are saying the same thing. Non trumpers included. Time to shut it down for the day, don't want that most hated poll to hit 70% plus do you?

[BaldBastard]

Originally Posted by dyna mo

repatriation of offshore cash is not included in the CPI calculation and I'm not panicking over anything, certainly not the economy or immigrants.

USA GDP is about 1.5 trillion a month, offshore cash was said to bring in nearly 2.5 trillion, and its quietly just been added to the bottom line, this year.. when it was a one off event. Think about that at least.

If unemployment is at 3.9%, how much can businesses expand before there is not enough workers and wages start skyrocketing?

When USA lowered Tax rates, I was screaming here with others.. we must lower ours to compete, but its proved to be a whole misconception because not a single business has left and returned to the USA due to lower rates, and investment funds have continued flowing in. And while that's great for Australia! You've been conned..

[dyna mo]

Originally Posted by MrBaldBastard

USA GDP is about 1.5 trillion a month, offshore cash was said to bring in nearly 2.5 trillion, and its quietly just been added to the bottom line, this year.. when it was a one off event. Think about that at least.

If unemployment is at 3.9%, how much can businesses expand before there is not enough workers and wages start skyrocketing?

When USA lowered Tax rates, I was screaming here with others.. we must lower ours to compete, but its proved to be a whole misconception because not a single business has left and returned to the USA due to lower rates, and investment funds have continued flowing in. And while that's great for Australia! You've been conned..

that 2.5 trillion $ # is the estimated total of offshore cash, not what's been repatriated in 2018.

I haven't been conned on anything. My business is doing gangbusters and we've set things up to take advantage of the corporate tax cuts and we're expanding.


I'm not seeing ANY great news at all about aus economy.

[BaldBastard]

Originally Posted by dyna mo

that 2.5 trillion $ # is the estimated total of offshore cash, not what's been repatriated in 2018.

I haven't been conned on anything. My business is doing gangbusters and we've set things up to take advantage of the corporate tax cuts and we're expanding.


I'm not seeing ANY great news at all about aus economy.

https://www.businessinsider.com.au/a...ecb-fed-2018-6

Aus is fine like the majority of the western world that dogged the recession, due to Government management and just like the USA.. only reason business is up so much this year is.. Asia.

> https://www.census.gov/foreign-trade/balance/c0016.html

Housing is down slightly here but that's by design, property prices are nuts so they are trying to rein them in.. fuck it.. Wifey has a portfolio now of over 100 places, Trump farts.. and I lose my pot money... bitch.

[Bladewire]

Originally Posted by MrBaldBastard

USA GDP is about 1.5 trillion a month, offshore cash was said to bring in nearly 2.5 trillion, and its quietly just been added to the bottom line, this year.. when it was a one off event. Think about that at least.

If unemployment is at 3.9%, how much can businesses expand before there is not enough workers and wages start skyrocketing?

When USA lowered Tax rates, I was screaming here with others.. we must lower ours to compete, but its proved to be a whole misconception because not a single business has left and returned to the USA due to lower rates, and investment funds have continued flowing in. And while that's great for Australia! You've been conned..

Not all of have been conned. It's pretty common knowledge that Democratic administrations fills the U.S. Treasury, then the next Republican administration rolls back regulations, robs the U.S. Treasury and puts us more in debt.

Just like Obama spent 4 years dragging us out of recession and having the fed lowering interest rates, Trump has raised rates 6 times in a year for the 1% to rake in the cash.

[onwebcam]

Originally Posted by Bladewire

Not all of have been conned. It's pretty common knowledge that Democratic administrations fill the U.S. Treasury, then the next Republican administration rolls back regulations, robs the U.S. Treasury and puts us more in debt.

Yes Obama filled the US Treasury with IOUs

[Bladewire]

[GFED]

[GFED]

Originally Posted by onwebcam

Yes Obama filled the US Treasury with IOUs

Yes, a lot of QE and stock buybacks has got us here.

[Bladewire]

Originally Posted by GFED

Yes, a lot of QE and stock buybacks has got us here.

Yeah Obama got us out of the recession, got jobs back, lowered interest rates continuously, only raised them once in 8 years. Improved the cost of living, raised the minimum wage. He saved the economy instead of filling the coffers like Clinton did.

Now everything's getting more expensive, interest rates raised 6 times in a year, wages are stagnant we have the highest spending bill in history. Sucks

If you were lucky enough to have a wage increase, it's eaten up by the inflation, wage increases averaged 2%.

[OneHungLo]

Originally Posted by Bladewire

Yeah Obama got us out of the recession, got jobs back, lowered interest rates continuously, only raised them once in 8 years. Improved the cost of living, raised the minimum wage. He saved the economy instead of filling the coffers like Clinton did.

No, QE was put in place by GW. Clueless as usual.

[GFED]

Originally Posted by OneHungLo

No, QE was put in place by GW. Clueless as usual.

We've actually had 4 or 5?

[Bladewire]

Originally Posted by OneHungLo

No, QE was put in place by GW. Clueless as usual.

The economy is an issue where dogma and lies is toxic you should lay off the bullshit on this topic it's not funny.

[TheSquealer]

[OldJeff]

Though a true statement, 7 and 9 years ago inflation was higher than it is now.

Cherry picked statistics are cherry picked

[Bladewire]

Originally Posted by OldJeff

Though a true statement, 7 and 9 years ago inflation was higher than it is now.

Correct, the last time inflation was this bad was 3 years into the financial crisis, 7 years ago. Do you understand what that means? Here's a reminder from 2011

Hopefully everyone in this thread has been able to save up a lot of money the last year and a half. Hopefully you've gotten a raise, got a huge tax refund and have investments that are raking in the cash and you can cash out before this next crash.

[OldJeff]

Originally Posted by Bladewire

Correct, the last time inflation was this bad was 3 years into the financial crisis, 7 years ago. Do you understand what that means? Here's a reminder from 2011

Hopefully everyone in this thread has been able to save up a lot of money the last year and a half. Hopefully you've gotten a raise, got a huge tax refund and have investments that are raking in the cash and you can cash out before this next crash.

I don't seem to remember any hyper inflation in 2011

Inflation pretty much always happens when the economy gets stronger, people have more money, can spend more money, the wheels on the bus go round and round

[Bladewire]

Originally Posted by OldJeff

I don't seem to remember any hyper inflation in 2011

Inflation pretty much always happens when the economy gets stronger, people have more money, can spend more money, the wheels on the bus go round and round

I never said there was hyperinflation in 2011. I guess you didn't watch the video.

This came out today on MarketWatch:

Rising rates and deficit spell big trouble for the U.S.


“It’s pretty much unprecedented that we’re seeing this level debt expansion so late in an economic cycle,”

"Three takeaways ahead of #Fed:

1) Market bets that the Fed will underdeliver on rate hike guidance are no longer good bets

2) USD positives from a more hawkish leaning Fed are now offset by US protectionism

3) Impact of normalization poses a much deeper risk to #stocks than FX"

[TheSquealer]

[TheSquealer]