Pimco, Capital Group Say Era of Low Inflation Is Gone for Good

[1srelluc]

(Bloomberg) -- Some of the world’s biggest bond investors say the market is wrong to expect central banks to score a long-term win in the war against inflation.

It's a wall of text so here's the link:

Pimco, Capital Group Say Era of Low Inflation Is Gone for Good

I'm seeing a perfect storm of inflationary forces, most of which don't have much relief in sight.

The Fed can crash demand by dicking with the cost to borrow money, but they can't fix the supply chain issues or the fact that current tensions with China and Russia will make rebuilding the supply chain more expensive and less efficient than it was before.

All in all, expect prices to stay higher than normal because goods and materials will be harder to get.

Sounds like the Carter era all over again, but this time with social media to stoke the tension.

 

[pknopp]

They are simply pissed that the Fed has announced that rates will rise even if we have a recession.

To note, it wasn't long ago that those with something to gain was predicting $350 for a barrel of oil.

 

[JGalt]

(Bloomberg) -- Some of the world’s biggest bond investors say the market is wrong to expect central banks to score a long-term win in the war against inflation.

It's a wall of text so here's the link:

Pimco, Capital Group Say Era of Low Inflation Is Gone for Good

I'm seeing a perfect storm of inflationary forces, most of which don't have much relief in sight.

The Fed can crash demand by dicking with the cost to borrow money, but they can't fix the supply chain issues or the fact that current tensions with China and Russia will make rebuilding the supply chain more expensive and less efficient than it was before.

All in all, expect prices to stay higher than normal because goods and materials will be harder to get.

Sounds like the Carter era all over again, but this time with social media to stoke the tension.

Thanks for the Permaflation, Joe Biden. You will be remembered as the single worst President in this country's history.

 

[1srelluc]

They are simply pissed that the Fed has announced that rates will rise even if we have a recession.

To note, it wasn't long ago that those with something to gain was predicting $350 for a barrel of oil.

I'll be the first to say that Pimco has not been all that of late but the inflation pressures can't be denied, at least by thinking folks with skin in the game.

Wishing in one hand and shitting in the other comes to mind when I think of dem "economics".....Sorta like that so-called transitory inflation.

​

 

[KissMy]

Inflation is always, always, always, caused by printing money like the 5X increase by Trump. That 500% inflation tax will be sucking your wallet dry for the rest of your life.

 

[pknopp]

I'll be the first to say that Pimco has not been all that of late but the inflation pressures can't be denied, at least by thinking folks with skin in the game.

Wishing in one hand and shitting in the other comes to mind when I think of dem "economics".....Sorta like that so-called transitory inflation.

​

Democrats have never supported rising rates either.

 

[1srelluc]

Democrats have never supported rising rates either.

You sure can't tell it by their actions that are the cause for the rate hikes.....A little austerity goes a long way.

 

[pknopp]

You sure can't tell it by their actions that are the cause for the rate hikes.....A little austerity goes a long way.

The rate hikes were inevitable. They should have happened long ago. Money was never intended to be "free".

 

[1srelluc]

The rate hikes were inevitable. They should have happened long ago. Money was never intended to be "free".

Are you really going with "we could not help ourselves"?

 

[pknopp]

Are you really going with "we could not help ourselves"?

It was noted during the Trump administration that rates would have to rise. Are you really this ignorant on how this all works?

 

[1srelluc]

It was noted during the Trump administration that rates would have to rise. Are you really this ignorant on how this all works?

Nope, both "sides" are spendthrifts and you are correct that rates should have went up some time ago but it was hard to justify with little to no inflation pressure at the time.....Then the covid hit and the fed sat on their hands.

That said when it's obvious that when austerity measures are clearly in order but spending is increased with 50-51 passed spending bills it's all about buying votes.

The out of touch dems running things don't give two shits about the country......They are doing just fine for themselves. I bet you don't see them worrying about how they are going to afford to feed their family.

 

[pknopp]

Nope, both "sides" are spendthrifts and you are correct that rates should have went up some time ago but it was hard to justify with little to no inflation pressure at the time.....Then the covid hit and the fed sat on their hands.

There was plenty of inflation. Many were complaining long before 2020 about the rising prices. Covid did affect that somewhat but anyone with half a lick of sense should have known that was temporary.

We discussed the rising prices at the grocery store many times.

That said when it's obvious that when austerity measures are clearly in order but spending is increased with 50-51 passed spending bills it's all about buying votes.

The out of touch dems running things don't give two shits about the country......They are doing just fine for themselves. I bet you don't see them worrying about how they are going to afford to feed their family.

Trump passed huge deficits on partisan votes also.

 

[1srelluc]

There was plenty of inflation. Many were complaining long before 2020 about the rising prices. Covid did affect that somewhat but anyone with half a lick of sense should have known that was temporary.

We discussed the rising prices at the grocery store many times.



Trump passed huge deficits on partisan votes also.

So you are going with "well Trump did it"......I bitched about it at the time myself.....He got rolled.

The Turtle had way too much influence on Trump and it's part of the reason that I'd not vote for him in a primary if there's another viable choice to be had.

 

[pknopp]

So you are going with "well Trump did it"......I bitched about it at the time myself.....He got rolled.

No, I have been very clear.........Bush, Obama, Trump and Biden did it.

The Turtle had way too much influence on Trump and it's part of the reason that I'd not vote for him in a primary if there's another viable choice to be had.

Again with the argument that the man of the people was easily swayed. His actions always seem to be the fault of someone else.

 

[Toddsterpatriot]

Inflation is always, always, always, caused by printing money like the 5X increase by Trump. That 500% inflation tax will be sucking your wallet dry for the rest of your life.

Why doesn't Biden unprint it already?
Is it because his brain is mush?

 

[1srelluc]

No, I have been very clear.........Bush, Obama, Trump and Biden did it.



Again with the argument that the man of the people was easily swayed. His actions always seem to be the fault of someone else.

There is no argument.....He chose poorly in who to trust....His biggest failing IMHO.

 

[KissMy]

Are you really going with "we could not help ourselves"?

Obama had Yellen raising rates to prevent inflation. Then Trump replaced her with Powell who lowered them while he had Mnuchin print, print, print 500% more money than all presidents in history COMBINED!

 

[pknopp]

There is no argument.....He chose poorly in who to trust....His biggest failing IMHO.

Trump only hires the very best. He told us so many times.

 

[1srelluc]

Trump only hires the very best. He told us so many times.

It did not mean it was true.....Overall Pompeo was likely his best choice....One of his biggest mistakes was having his daughter and SIL in the WH.

You are barking up the wrong tree if you believe I think Trump was perfect. He was just hands and feet better than FHRC.....I preferred Rand Paul.

 

[pknopp]

It did not mean it was true....

There we go. That was the point I was getting at.