The inflation situation is much WORSE than it was 40 years ago

[Lisa558]

Back in 1982, inflation was just over 10%, but 10-year bonds were paying 14% and a 6-month CD hit 15%. So while people were being hit hard by the increased prices, people who had saved for a rainy day - and particularly retirees living on their savings - could protect their money from the erosion of inflation.

Today, savings rates pay squat, and savers are watching inflation eat into their savings. At current rates, retirees will have lost more than 20% of real money within three years.

ForecastChart.com

CD Interest Rate Chart - 6 Month CD

www.forecast-chart.com

 

[Devils_Advocate]

Big Brother Joe will fix it!

 

[JackOfNoTrades]

Back in 1982, inflation was just over 10%, but 10-year bonds were paying 14% and a 6-month CD hit 15%. So while people were being hit hard by the increased prices, people who had saved for a rainy day - and particularly retirees living on their savings - could protect their money from the erosion of inflation.

Today, savings rates pay squat, and savers are watching inflation eat into their savings. At current rates, retirees will have lost more than 20% of real money within three years.

ForecastChart.com

CD Interest Rate Chart - 6 Month CD

www.forecast-chart.com

Not even close...lol. sigh..
Apparently, you didn't live it. Just heard about it.

 

[Lisa558]

Not even close...lol. sigh..
Apparently, you didn't live it. Just heard about it.

I lived it. I even included a link that showed the 14% and 15% rates. You must be quite young, which explains a lot.

 

[JackOfNoTrades]

I lived it. I even included a link that showed the 14% and 15% rates. You must be quite young, which explains a lot.

No sweetie, I'm around the same age as you. And the inflation, combined with the actual visible SHORTAGES in the 70's??..about half of what I see today. Back to the outrage board beginning....

 

[Lisa558]

No sweetie, I'm around the same age as you. And the inflation, combined with the actual visible SHORTAGES in the 70's??..about half of what I see today. Back to the outrage board beginning....

Wow. You lefties miss the point. This is about the fact that the high returns of Treasuries - peaking around 15% in 1981 or 1982 - offset the high inflation. My dad locked in some 30-year Treasuries at around 13% - he missed the absolute peak, but that return was GREAT - and locked in for his entire retirement.

Now Biden has us in a high inflation with savings instruments paying 1% and 2%. The situation is much worse. Perhaps it would be better if you didn’t participate in a thread when you are so wrong about the point. You’ll just look ignorant.

30 Year Treasury Rate - 39 Year Historical Chart

Interactive chart showing the daily 30 year treasury yield back to 1977. The U.S Treasury suspended issuance of the 30 year bond between 2/15/2002 and 2/9/2006.

www.macrotrends.net

 

[JackOfNoTrades]

Wow. You lefties miss the point. This is about the fact that the high returns of Treasuries - peaking around 15% in 1981 or 1982 - offset the high inflation. My dad locked in some 30-year Treasuries at around 13% - he missed the absolute peak, but that return was GREAT - and locked in for his entire retirement.

Now Biden has us in a high inflation with savings instruments paying 1% and 2%. The situation is much worse. Perhaps it would be better if you didn’t participate in a thread when you are so wrong about the point. You’ll just look ignorant.

30 Year Treasury Rate - 39 Year Historical Chart

Interactive chart showing the daily 30 year treasury yield back to 1977. The U.S Treasury suspended issuance of the 30 year bond between 2/15/2002 and 2/9/2006.

www.macrotrends.net

Yep. Gotcha. Try to stay on point here. Go back to the late 70's...when inflation and shortages REALLY took hold and then manifested themselves in the early 80's.

So..you're going to blame BIDEN for 1-2% yields that have been in the making since the Fed has cut interest rates like shopping mall ribbons for years..under..dare I say..your saviors reign??..ah..nevermind.

You are alt-right. Swim in it.
The only one ignorant here is you.
Knee-jerk reactive. Typical.

 

[Not a Monkeys Uncle]

Back in 1982, inflation was just over 10%, but 10-year bonds were paying 14% and a 6-month CD hit 15%. So while people were being hit hard by the increased prices, people who had saved for a rainy day - and particularly retirees living on their savings - could protect their money from the erosion of inflation.

Today, savings rates pay squat, and savers are watching inflation eat into their savings. At current rates, retirees will have lost more than 20% of real money within three years.

ForecastChart.com

CD Interest Rate Chart - 6 Month CD

www.forecast-chart.com

 

[Lisa558]

Yep. Gotcha. Try to stay on point here. Go back to the late 70's...when inflation and shortages REALLY took hold and then manifested themselves in the early 80's.

So..you're going to blame BIDEN for 1-2% yields that have been in the making since the Fed has cut interest rates like shopping mall ribbons for years..under..dare I say..your saviors reign??..ah..nevermind.

You are alt-right. Swim in it.
The only one ignorant here is you.
Knee-jerk reactive. Typical.

I know you are triggered when someone says that things are bad with inflation today, and I am just pointing out that it is worse now than it was in the early 1980s - when high returns on savings of 14% and 15% prevented the erosion of savings. Thus, the inflation today is more damaging to current retirees.

If my observation that a 13%, 30-year bond would protect inflation from eroding my real savings makes me “alt-right”, so be it.

 

[Not a Monkeys Uncle]

Consumer Prices Explode 7.5% Higher, Worst Inflation in 40 Years

Consumer Prices Explode 7.5% Higher, Worst Inflation in 40 Years

Much worse than expected. | Economy

www.breitbart.com

 

[Not a Monkeys Uncle]

I know you are triggered when someone says that things are bad with inflation today

Call him Jack of No Balls

 

[JackOfNoTrades]

I know you are triggered when someone says that things are bad with inflation today, and I am just pointing out that it is worse now than it was in the early 1980s - when high returns on savings of 14% and 15% prevented the erosion of savings. Thus, the inflation today is more damaging to current retirees.

If my observation that a 13%, 30-year bond would protect inflation from eroding my real savings makes me “alt-right”, so be it.

Yeah. I get it. Talking out of your nether regions. Inflation in 70's was 20x worse.
On average if you are leveraged in stocks and balanced funds, your long term gains will flesh out.
Seek the guidance of a professional investor.
Bonds??...yikes.

 

[Turtlesoup]

No sweetie, I'm around the same age as you. And the inflation, combined with the actual visible SHORTAGES in the 70's??..about half of what I see today. Back to the outrage board beginning....

I lived through the 70's of well..........Biden has set us up to implode far worse than even Carter. Even worse now that the dems have encouraged people to become criminals and has already been encouraging our enemies to attack. And the feds haven't started to raise interest rates YET...........down comes employment and up goes prices as the interest rates go up. They are hiding how bad things are now and trying to wait till after the election for the major rate hikes-------its going to be a bad christmas 2022.

 

[Lisa558]

Yeah. I get it. Talking out of your nether regions. Inflation in 70's was 20x worse.
On average if you are leveraged in stocks and balanced funds, your long term gains will flesh out.
Seek the guidance of a professional investor.
Bonds??...yikes.

I am talking about when 30-year bonds paid 13%, you Idiot! Returns like that saved retirees from the erosion of inflation, which we do not have now under Biden. Things are much worse NOW.

Leftists are completely clueless as to the damage they are causing. Don’t you understand you can’t keep printing money to give to people so they won’t have to work??

 

[JackOfNoTrades]

I lived through the 70's of well..........Biden has set us up to implode far worse than even Carter. Even worse now that the dems have encourage people to become criminals and has already been encouraging our enemies to attack.

I notice you didn't actually address any of the actual real inflation and shortages in the 70's. Just reverted to..DEMOCRATS.....BAD!!

 

[Dekster]

Back in 1982, inflation was just over 10%, but 10-year bonds were paying 14% and a 6-month CD hit 15%. So while people were being hit hard by the increased prices, people who had saved for a rainy day - and particularly retirees living on their savings - could protect their money from the erosion of inflation.

Today, savings rates pay squat, and savers are watching inflation eat into their savings. At current rates, retirees will have lost more than 20% of real money within three years.

ForecastChart.com

CD Interest Rate Chart - 6 Month CD

www.forecast-chart.com

Word. The price of adding to my Hunter Biden art collection has gotten way more expensive since Joe has been POTUS.

 

[JackOfNoTrades]

I am talking about when 30-year bonds paid 13%, you Idiot! Returns like that saved retirees from the erosion of inflation, which we do not have now under Biden. Things are much worse NOW.

Leftists are completely clueless as to the damage they are causing. Don’t you understand you can’t keep printing money to give to people so they won’t have to work??

Same old, same old alt-right arguments I've heard for 30+ years. And they aren't anymore true than they were back then.

What is it with you and high bond yields? Do you not understand the basic relationship between interest rates and bond yields? So..interest rates over the last 30 years?...anything?

 

[Lisa558]

I notice you didn't actually address any of the actual real inflation and shortages in the 70's. Just reverted to..DEMOCRATS.....BAD!!

Because that’s not the topic. Stop with the leftist deflection when you can’t refute the point.

I am saying that the media is reporting that Biden has us in the worst inflation in 40 years, when in truth things weren’t as bad 40 years ago because the high inflation was offset by even higher, GUARANTEED returns.

 

[Winston]

Back in 1982, inflation was just over 10%, but 10-year bonds were paying 14% and a 6-month CD hit 15%. So while people were being hit hard by the increased prices, people who had saved for a rainy day - and particularly retirees living on their savings - could protect their money from the erosion of inflation.

Today, savings rates pay squat, and savers are watching inflation eat into their savings. At current rates, retirees will have lost more than 20% of real money within three years.

ForecastChart.com

CD Interest Rate Chart - 6 Month CD

www.forecast-chart.com

I think we need to take the same approach as Re agan and Volcker to this inflation problem. See, currently, inflation is primary caused by three factors. Pent-up demand due the Covid pandemic, supply chain problems because of the Covid pandemic, and labor shortages because, wait for it, the Covid pandemic. Nothing like 1982, but let's take the, at the time, Republican approach. But make no mistake about, Reagan would be ran out of the Republican party today, and probably tared and feathered before hand.
plani
First, you increase taxes. Yep, I said it. And the reality is that Reagan's tax increase in 1982 was the second highest in history as measured by percentage of GDP. The introduction of Medicare by Johnson is the only one higher. Second, you get the ultimate asshole, like Volcker, to drive interest rate through the roof. Damn skippy, I got no problem with CD's paying 15%, matter of fact, I start making money hand over fist. And housing prices, them fawkers collapse. Which is fine by me. My house is paid for and I ain't going anywhere.

But what is really comical, is that the Reagan plan is the antithesis of what Republicans would support today. Bought and bossed, that is your modern Republican party.

 

[Lisa558]

Same old, same old alt-right arguments I've heard for 30+ years. And they aren't anymore true than they were back then.

What is it with you and high bond yields? Do you not understand the basic relationship between interest rates and bond yields? So..interest rates over the last 30 years?...anything?

I’m losing patience with you and your alt-right nonsense. Alt-right is the KKK. How does my pointing out that inflation was offset by high returns that we don’t have now.

You are getting panicky because regular Americans are now feeling the hit of liberal policies, and we have an election coming up.