"It's The Economy, Stupid" U.S. Economy Megathread

[Chris 2,161]

I'm seeing this today, and everyone is celebrating:

Quote

WASHINGTON (AP) — Squeezed by painfully high prices for two years, America’s households have gained some much-needed relief with inflation reaching its lowest point since early 2021 — 3% in June compared with a year earlier — thanks in part to easing prices for gasoline, airline fares, used cars and groceries.

Source

Am I missing something? Because I don't see prices coming down on stuff!

[MsKreed 1,179]

14 minutes ago, Chris said:

Am I missing something? Because I don't see prices coming down on stuff!

Yeah....the verbiage is deceptive.

The rate of inflation is down.  So....prices are still going up, just not increasing as rapidly as previous months.

Analogy.....If I’ve gained 60 lbs in the past year (5lbs/month), and brag on social media that my rate of weight gain “slows” to 3lbs a month --- I’m not losing weight or getting any “healthier”.

 

 

[Chris 2,161]

I had to read it several times before I could see beyond the "YAY! Bidenomics is working!!!" messaging. 

[Hal 341]

1 hour ago, Chris said:

I had to read it several times before I could see beyond the "YAY! Bidenomics is working!!!" messaging. 

Remember , it was Reagonomics that drove the down economy when he made it no longer possible to claim interest payments as a deduction on Federal income tax returns thereby virtually stopping any purchases on credit cards , housing , new cars etc . Reagan was a  decent President but put the screws to a whole generation ( mine ) with his playing with the economy at that time . It will not get better we will only play along , pay out more and wait until the next Great Freaking Idea comes along … if we survive Bidenmentia . 

[JustAGuy 12]

Yet I hear these bums can't sell electric vehicles. The car lots can't get rid of these puppies and are overstocked with them. But I do recall hearing as far as gasoline goes its cheaper to make in one season than the other but that season is not now....

Airfare may be going down a bit but good luck getting a flight or going on a trip without a hitch. Seems like everyone is having problems recently. 

[JustAGuy 12]

The whole thing is one gigantic house of cards though. There is a website where you can track the debt in live time. It goes up every single solitary second. It's going up as I type. Think it's at $30 billion now. Of course you would ask in debt to whom. Great answer and I don't have it. But I do k ow this racket. Each person is financial debt to society, even more if they pay taxes. Thr powers that be are at an all you can eat buffet with no intention of actually paying the bill. This shit show structure only lasts as long as they deem it worthwhile. 

[Chris 2,161]

Quote

 

After briefly pausing its war on inflation last month, the Federal Reserve is resuming the battle by hiking its benchmark interest rate to the highest level in 22 years.

The central bank concluded a two-day policy meeting on Wednesday by announcing that it is raising the federal funds rate by a quarter of a percentage point, lifting the Fed's target rate to between 5.25% and 5.5%. 

The Fed left the door open to further rate hikes this year, with Chair Jerome Powell telling reporters in a news conference that additional tightening is possible unless inflation continues to cool rapidly.

 

Source

[Adam 373]

5 hours ago, Chris said:

Source

means we all will be doing that much better, financially, after the hike...

 

[JustAGuy 12]

Lol someone needs to audit the Fed. They print money out of thin air. Wouldn't trust the central bank. Not only is that a Rockefeller/Rothschild thing but I'm pretty sure it explains why we have these wars or tensions in certain places. Look at Iran. Allegedly Obama gave them billions when he was president. Mevermimd the part about him being from the middle east. Look at the last decade. Places we toppled like Libya and Syria. No structure or central bank. I think Iran may be the last country in the world without one. It was one of 4 at one point anyway. 

But this shit is all orchestrated as proven by general Wesley Clark. Listen to how he says that he was told days after 9-11 they would topple these 7 countries. They said they'd do it in 5 years. That part has failed as Iran is still floating out there. But this should show you how rigged and staged it all is. This guy was told this 10 days after 9-11. The funniest part to me is how the audience laughed and he joked about their boredom.

 

[MsKreed 1,179]

On 7/12/2023 at 11:07 AM, Chris said:

I had to read it several times before I could see beyond the "YAY! Bidenomics is working!!!" messaging. 

Nothing shouts "best economy ever" like warnings that the average American is less than a paycheck away from complete financial ruin......

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Understand that across our country, how many people cannot afford to live where they work and have to commute to work, sometimes hours at a time, driving over bridges and roads that are falling apart — what that might mean in terms of a flat tire, what that means in terms of coming out of pocket because your car insurance doesn’t cover it.  And the average American is a $400 unexpected expense away from bankruptcy.

 

VP Harris JULY 24, 2023,

source: White House briefing website

Edited July 28, 2023 by MsKreed

[Andy 70]

 

3 hours ago, MsKreed said:

Nothing shouts "best economy ever" like warnings that the average American is less than a paycheck away from complete financial ruin.....

Nothing new, I remember reading this fun fact in 2019

https://www.cnbc.com/amp/2019/05/23/millions-of-americans-are-only-400-away-from-financial-hardship.html

[MsKreed 1,179]

Oh...there's been a growing problem with lack of saving for rainy day or emergencies.....let alone retirement for years.

But her statement is problematic for a couple of reasons.  If nothing else, it shows no improvement from 2019.

And, if her characterization of "the average American" is accurate, then it's more widespread than the 27% cited foour years ago. Moreover, if that $400 now represents the verge of bankruptcy, it implies financial devastation.....not just a temporary hardship that selling or  borrowing would cover. 

• 27% of adults would need to borrow or sell something to pay for an unexpected expense of $400.

[JustAGuy 12]

The real problem beyond this all being a house of cards designed to collapse is how people live. Society has turned luxuries into necessities. 

[Chris 2,161]

I just got back from he grocery store and have come to the conclusion that anyone who tells you the economy is great is simply pissing down your neck and telling you it's raining. 

A loaf of bread has gone up $1.00 since the last time I bought it, oh, about a week ago. And sure, the "sale price" is the same as what it was before, but how long does that last and suddenly you're at the new "normal" price?

Meanwhile you have people who don't even know what a loaf of bread costs in charge, telling us how great everything is all the sudden. 

It's a complete crock. 

[Chris 2,161]

11 hours ago, JustAGuy said:

The real problem beyond this all being a house of cards designed to collapse is how people live. Society has turned luxuries into necessities. 

Also-effin-lutely. 

Cell phones, soda, potato chips, Subway subs, etc... None of these are "necessities." And I'd go one step further and say that all the junk food a person can buy with an EBT card these days only creates more of a problem in the form of obesity and the resulting health care needs. 

But here I am, looking over the meat aisle for the stuff that's reduced to sell because it's about to go out of date to save a few bucks. 

[JustAGuy 12]

6 hours ago, Chris said:

Also-effin-lutely. 

Cell phones, soda, potato chips, Subway subs, etc... None of these are "necessities." And I'd go one step further and say that all the junk food a person can buy with an EBT card these days only creates more of a problem in the form of obesity and the resulting health care needs. 

But here I am, looking over the meat aisle for the stuff that's reduced to sell because it's about to go out of date to save a few bucks. 

I mean we could go further. Lol. The TVs, computers and more. You don't even necessarily needs fans or air conditioners. People lived decades without them. Sure I get it not convenient but just adding to the point. Somehow we have become trained that what was always a luxury is now necessary. Interesting how we got here. Maybe it is the boomer generation in the older years. It seemed like the generation before them was a bit more conservative on where the money went. Funny how boomers grew up in houses of like 7 or 8 standard and for them a family of 4 was a tight budget and now good luck raising kids. The smaller the families have become the more expensive it has become to live. It's assbackwards. 

[MsKreed 1,179]

1 hour ago, JustAGuy said:

Somehow we have become trained that what was always a luxury is now necessary. Interesting how we got here. Maybe it is the boomer generation in the older years. It seemed like the generation before them was a bit more conservative on where the money went.

You’re not wrong about this.

I was going to comment about the fact that those left who were around during the Great Depression wouldn’t even recognize what is now referred to as ‘poverty’. 

By definition, “Boomers” are a result of the “baby boom” after WWII....a rise in births from 1946 to 1964.

Their parents were more frugal and self-sufficient from surviving the Depression and the War. But they also started to (and raised their boomer kids to) enjoy the post-war economic and technical “booms” that you pointed out.....like supermarkets with abundant (and prepared) food, TV, entertainment and ‘disposable income’, etc. 

Many boomers grew up taking those indulgences for granted. Some boomers were still taught to appreciate the difference between “wants and needs”.....but most really can’t imagine life without both like their parents did. And even fewer Gen X (born between 1965 & 1980) ever had to get by with just basic “needs”.

I think there’s some Greek or Roman philosopher that wrote about the historical cycle, and essentially said it take a full-on collapse that sets a society back to the “needs” phase so the whole sequence starts over. 

[Adam 373]

On 7/28/2023 at 9:49 PM, Andy said:

 

Nothing new, I remember reading this fun fact in 2019

https://www.cnbc.com/amp/2019/05/23/millions-of-americans-are-only-400-away-from-financial-hardship.html

Trump hate/love aside: see below quote from somewhere familiar to know the difference....

 

10 hours ago, Chris said:

A loaf of bread has gone up $1.00 since the last time I bought it, oh, about a week ago. And sure, the "sale price" is the same as what it was before, but how long does that last and suddenly you're at the new "normal" price?

 

10 hours ago, Chris said:

But here I am, looking over the meat aisle for the stuff that's reduced to sell because it's about to go out of date to save a few bucks. 

 

[Chris 2,161]

25 minutes ago, Adam said:

Trump hate/love aside: see below quote from somewhere familiar to know the difference....

Oh we’re doing fine, it’s the memory of those pre-Boomer generation family members whispering in my ear. 

[JustAGuy 12]

14 hours ago, Chris said:

I just got back from he grocery store and have come to the conclusion that anyone who tells you the economy is great is simply pissing down your neck and telling you it's raining. 

A loaf of bread has gone up $1.00 since the last time I bought it, oh, about a week ago. And sure, the "sale price" is the same as what it was before, but how long does that last and suddenly you're at the new "normal" price?

Meanwhile you have people who don't even know what a loaf of bread costs in charge, telling us how great everything is all the sudden. 

It's a complete crock. 

Haha people like Joe Biden and Donald Trump don't buy bread. Shit I'm not sure they have to buy anything. 

But things have been out of whack since covid times. One thing I still can't get over is "market price" for chicken wings. The Parr of the chicken they just threw out back in the day that nobody wanted. I think price gouging is intentional. People lost a lot of money being told to sit home. They can all jack up the prices and what can we do about it? Nothing. Dhit at one point weren't they just killing off chickens or disposing their eggs cause they all had some magic flu? Lol. 

[JustAGuy 12]

6 hours ago, MsKreed said:

You’re not wrong about this.

I was going to comment about the fact that those left who were around during the Great Depression wouldn’t even recognize what is now referred to as ‘poverty’. 

By definition, “Boomers” are a result of the “baby boom” after WWII....a rise in births from 1946 to 1964.

Their parents were more frugal and self-sufficient from surviving the Depression and the War. But they also started to (and raised their boomer kids to) enjoy the post-war economic and technical “booms” that you pointed out.....like supermarkets with abundant (and prepared) food, TV, entertainment and ‘disposable income’, etc. 

Many boomers grew up taking those indulgences for granted. Some boomers were still taught to appreciate the difference between “wants and needs”.....but most really can’t imagine life without both like their parents did. And even fewer Gen X (born between 1965 & 1980) ever had to get by with just basic “needs”.

I think there’s some Greek or Roman philosopher that wrote about the historical cycle, and essentially said it take a full-on collapse that sets a society back to the “needs” phase so the whole sequence starts over. 

My parents are both of the boomer generation but it is interesting to see the difference between say my grandfather and uncle and my mother and her sisters. Even in his 90s I still see my grandfather not splurge. Still careful with his money. Mind you for his age he has more than enough to spend in his remaining days. I'm not sure if it's to pass something along to his grandkids or his kids or both. My parents and aunts/uncles are mostly in the retired zone now. But I watch what goes on. I watch how these people shop and what not. They all have an abundance of food(a fair amount gets tossed, even some times leftovers, which to me is mind-boggling how you can waste food)then I think growing up in a family of 4 every bedroom had an air conditioner. Every bedroom had a TV in it. There were like 6 or 7 rooms in the house and they all had a TV. I think there is something about wanting to live better than you have and you slways want to see your kids live better. But I think somewhere along the line the translation got lost. The homes and junk got bigger and the families smaller. Maybe the push for higher education on the masses changed these kids who grew up with not much amenities so to speak. Everyone going to school investing into stocks and banks and because for the boomer generation outside of maybe the times of Vietnsm it worked out really well. Even the great recession of the 70s didn't last that long. It was nothing of the Greqt Depression. By the time we reached thr 08-09 recession crisis they were all almost on the way out of their careers largely. Us millennial were just getting started or not even at all. It's never really gotten better and then the covid times made it worse. I'd be hard pressed thinking everyone isn't in some form of debt. I think for the average boomer because it always worked out they could never believe the stock market is rigged or that your bank account could be wiped out at the snap of a finger. Maybe the greatest generation used banks but probably not as religiously and same with the credit cards. Not hard to get one or use one really. People splurge with those things. I never understood the phenomenon of rushing to buy something I knew on that day I couldn't afford. 

[MsKreed 1,179]

I’m careful to avoid carrying a balance on credit cards (unless it’s under a low/no interest promotion that I pay off before it expires).

But I know more and more people are making “minimum payments”. And, with crazy inflation, increasingly relying on credit cards for everyday purchases, back to school shopping, Christmas, etc. At over 20% APR, many are digging themselves deeper.

This is going to become unsustainable very soon:

Total Household Debt Reaches $17.06 Trillion in Q2 2023; Credit Card Debt Exceeds $1 Trillion

Quote

Credit card balances increased by $45 billion, from $986 billion in Q1 2023 to a series high of $1.03 trillion in the Q2 2023, marking a 4.6% quarterly increase. Credit card accounts expanded by 5.48 million to 578.35 million. Aggregate limits on credit card accounts increased by $9 billion and now stand at $4.6 trillion.

 

[Adam 373]

5 hours ago, MsKreed said:

I’m careful to avoid carrying a balance on credit cards (unless it’s under a low/no interest promotion that I pay off before it expires).

But I know more and more people are making “minimum payments”. And, with crazy inflation, increasingly relying on credit cards for everyday purchases, back to school shopping, Christmas, etc. At over 20% APR, many are digging themselves deeper.

This is going to become unsustainable very soon:

Total Household Debt Reaches $17.06 Trillion in Q2 2023; Credit Card Debt Exceeds $1 Trillion

 

ideologies aside, you see politicians like Schumer out there saying things are cheaper, jobs, jobs, jobs and so on, and theres many out there that agree! One from Westchester area was trying to say that gas was cheaper in NYS than it has been in a few years. i replied that theres more to the state than the hudson valley, and last i tanked up, the "cheap gas" was creeping up on $4/gallon and grocery bill(despite household getting smaller) has gone up. the reply was essentially get rid of all republicans things would be better, food is high because war in ukraine and if i read more i would understand it.

me being me, i could not let that sit, so paraphrasing my reply: a 5 minute google search shows the US exports more food than imports, main exporters to us are canada/mexico, what we get from europe is mainly wine, spirits and essential oils, what wheat we do buy from ukraine goes to the world food bank so neener-neener

 

[Chris 2,161]

On 8/8/2023 at 2:11 PM, MsKreed said:

I’m careful to avoid carrying a balance on credit cards (unless it’s under a low/no interest promotion that I pay off before it expires).

At my worst, my credit card balance ( just me ) has only been $3,000, which is the limit and I won't raise it any higher. As a family, I'm very sure we don't have a total high balance at all. The wife is pretty diligent about that kind of thing. In the past I haven't worried too much about being on the higher end of my limit, but lately I have been paying better attention to how I use credit. Of course Christmas will come along and then things change, but we pay it down or off as fast as we can after. 

Maybe this year we can try to pay cash more, but with doing most of my shopping on Amazon, it may not work too well. 

[Chris 2,161]

Am I the only one who thinks the AP is doing all they can to not use the word "unemployment" here?