Large Industrial Companies going Off-Grid???

Says the Klown

No, a government policy of deficit spending is not considered monetary policy; it is classified as fiscal policy because it directly involves government spending and revenue collection, while monetary policy is controlled by the central bank and focuses on managing the money supply through interest rates and other tools.

https://www.pimco.com/us/en/resourc...are monetary policy and,a targeted band of 2%.

 

You need to go back and read my post citations. Deficit spending financed by the Federal Reserve is monetary policy enacted through the government. Deficit spending increases the monetary supply just like direct monetary policy from the Fed independent of government deficit spending.

You need to study more. Go back and read my citations.

Monetary policy and fiscal policy differ in their governing bodies. But BOTH increased monetary supply post Covid that caused massive inflation.

 

Treasury sells notes for our deficit, not the Fed, come on, get honest

 

The Fed owns 25% of US treasury notes.

Get educated.

 

Which is why so many are looking to thorium

 

Keep ignoring the posit and dancing around it, lol

Fed reserve is down to 17% and of course you "socialists" (lol) types are against the fed (?) and can't accept it kept US out the 3rd GOP great recession/depression.

Once more, world wide shutdown caused by Covid, mismanaged by Cheeto, created the inflation. The US handled inflation better than ANY other industrialized nation. Pretty simple really.

 

False. 2017-2020 almost no inflation. 2021-2024 significant inflation. Joe is the father of this baby.

2017 2.1%
2018 2.4%
2019 1.8%
2020 1.2%
2021 4.7%
2022 8.0%
2023 4.1%
2024 3.2%

 

Hmmmm. I’ve not danced around anything. I’ve simply pointed out the FACT deficit spending (fiscal policy) is made possible by the Federal Reserve activities involving monetary policy. The two are intertwined and complement each other in increasing the money supply relative to supply of goods. That’s what happened during Covid. The fed and the federal government both acted to increase the money supply relative to supply of goods. And lo and behold…..massive inflation!

Thanks for the update. I knew the fed was liquidating treasury notes but didn’t know they had made that much progress. But the percentage is irrelevant to the fact the Federal Reserve facilitates deficit spending by being a huge owner of federal government debt.

My socialist tendencies do not make me hate capitalism or the Federal Reserve. I’m ambivalent. I’m just educating you on FACTS about the system and how it created inflation. The FR has positive and negative effects on the economy. But I’m not emotionally invested in them at all. Just interested in folks knowing facts instead of the misinformation and disinformation ya’ll throw around here.

Yes, as I said, other countries spent and deficit spent into the pandemic economy as well. And paid the piper. It’s just how fiat debt based society functions.

Do you think Cheeto should have kept more of the economy active during Covid? That could have helped prevent inflation some. Or do you think he shouldn’t have given so much Covid assistance money out?

 

Massive inflation BECAUSE of that?

"calculations suggest that U.S. fiscal stimulus during the pandemic contributed to an increase in inflation of about 2.5 percentage points (ppt) in the U.S and 0.5 ppt in the United Kingdom."
https://www.federalreserve.gov/econ...g-covid-19-a-cross-country-view-20220715.html


A spike in profit margins contributed significantly to inflation in the early part of the pandemic recovery, and likely contributed to even more persistent inflationary pressure by helping spur a countervailing rise in nominal wage growth.

• For example, rising profits explained well over 40% of the rise in the price level between the end of 2019 and mid-2022, compared with profits normally accounting for about 11-12% of prices.
• 
  
• The profit spike was overwhelmingly due to pandemic distortions (shifting demand rapidly across sectors) and supply chain snarls (exacerbated by the Russian invasion of Ukraine) that granted many producers temporary monopoly power in key sectors.

• • Contrary to many influential economic writers and commentators, it is simply wrong to label the correlation between high profit margins and high inflation as simple evidence of an overheated economy. The overwhelming post-World War II evidence is that profit shares fall, not rise, as economies heat up.

Corporate power absolutely conditioned how the post-pandemic inflation happened.

Corporate profits largely explain the initial rise in inflation
https://www.epi.org/blog/profits-an...in profit margins,rise in nominal wage growth.

 

So no you didn't address the premise. Got it

Jun 15, 2022 — In nearly all of the 44 advanced economies we analyzed, consumer prices have risen substantially since pre-pandemic times.

https://www.pewresearch.org/short-r...e-world-inflation-is-high-and-getting-higher/

Mar 22, 2023

Think Inflation Is Bad in the US? See What Other Countries are Dealing With

A map of global inflation shows inflation is under better control in the U.S. than in most large economies

https://www.investopedia.com/inflation-rates-us-and-the-world-7369986

Corporate Profits in the aftermath of COVID-191


The large increase in profitability following the COVID-19 pandemic stands out. The profit margin increased from 11.3% in 2020q1 to 19.2% in 2021q2
https://www.federalreserve.gov/econ...ts-in-the-aftermath-of-covid-19-20230908.html

Corporate profits have contributed disproportionately to inflation.


https://www.epi.org/blog/corporate-...to-inflation-how-should-policymakers-respond/

 

You’re evading. The topic is inflation, which was not significant in the US until Biden took office.

 

Hmmm. From your link.

Then, you are forgetting about the effect of Federal Reserve actions. Remember, both fiscal and monetary policy are at play in increasing the monetary supply.

https://cepr.org/voxeu/columns/quan...s-more-inflation-conventional-monetary-policy

Quantitative easing was partly the Federal Reserve vacuuming up treasury notes we talked about earlier that you didn’t realize supported deficit spending.

Yes, fiscal policy probably contributed 2.5 points. But QE etc. by the FR contributed a lot more.

Now, it’s hilarious you post profits as “causing” inflation. Where do you think those profits came from? They came from the transfer of the expanded monetary supply (through deficit spending and direct monetary supply increases from the FR). All that new money chasing limited goods ended up in the hands of producers and importers of goods! Duh.

You cited “shifting demand rapidly across sectors”. You don’t know what caused increased demand across all sectors do you? It was increased monetary supply. It’s the ONLY thing that could increase demand across all sectors. Without injection of money into the economy there wouldn’t have been demand because people not working don’t have money unless it’s created and given to them.

This is very simple and straightforward. No increase in monetary supply, no increase in demand. No increase in demand, no inflated prices. No inflated prices, no exploding corporate profits.

Instead of arguing, try studying the basics of economics and then THINK it through. Profits didn’t cause inflation. Rising profit margins were possible only because of the increase in monetary supply relative to supply of goods. Yes, a lot of the created money ended up in corporate profits! But corporations didn’t create the money. They just sucked it up.

 

Got it, you want to argue with the feds data that showed 2.5% of the 8% inflation MIGHT'VE been because of Gov't actions but ignore Corp profits. Got how the "socialist" thinks at least.

Hint MONOPLIES OF CORPS ALLOWED THEM TO HAVE CAPTURED RECORD PROFITS

 

Cool, ignore Covid, Cheeto's failure to deal with it properly and just think Joe did it

"According to recent economic data, the United States has generally experienced lower inflation compared to most other developed countries in the world, meaning the US has "done better" with inflation than the rest of the world; particularly when compared to other G7 nations, where the US currently has the lowest inflation rate"

JOE CAUSE WORLD WIDE INFLATION?

 

The figures cited in #132 end this debate. Better luck next time.

 

Inflation trebled in Trump's final year figures. You do realise that yearly inflation is for the previous 12 months? Perhaps you could explain which of Biden's policies caused April 2020 inflation figure of 0.3% to jump to April 2021 of 4.2%. That's a 1400% increase in inflation rate

 

No. I’m not ignoring corporate profits. I just explained to you WHERE THE PROFITS CAME FROM. They came from the money the GOVERNMENT and the FEDERAL RESERVE pumped into the economy!


You posted fed data on fiscal policy. Earlier you are complaining that fiscal policy and monetary policy are two separate entities. Now you want to only account for ONE instead of both. You want to ignore QE that has a higher inflationary pressure than conventional monetary policy and fiscal policy.

You really need to learn what “shifting demand rapidly across sectors” means from your cite. Until you understand what fueled universal demand across all sectors simultaneously you will continue to embarrass yourself.

Corporate profits of that magnitude would have been impossible without the government and FR pumping money into the economy. People simply wouldn’t have had the money to pay the asking price. Corporations raised prices because there was an oversupply of money in relation to supply of goods. That’s what inflation IS. An increase in monetary supply relative to goods.

Monopolies were STRENGTHENED by fiscal and monetary policy during and post Covid.

Hint: you need to study basic economics. You are way out in the deep end and unable to swim.

 

Please see the figures in #132. Case closed.

 

Lol. I've used your figures and expanded on them!

 

LOL, Yes create premises I don't posit, argue from those posits, then say I'm out of my depth says the "socialist"

 

Yes. You documented the Biden inflation start. Inflation was only 1.2% through 31 Dec 2020, so Joe had only a few months to get it started by April 2021.

 

You clearly know nothing about how inflation rates are calculated. You probably think those published figures are predictions for the following 12 months

 

Inflation was only 1.2% through 31 Dec 2020, so Joe had only a few months to get it started by April 2021.

 

Stop being dishonest, he's not asking for a 12 month index, stopping Dec 2020

In December 2020, the inflation rate in the United States was 1.4%:

Annual inflation: The annual inflation rate was 1.4%, up from 1.2% the previous month.

Monthly inflation: Consumer prices increased 0.4% in December, after a 0.2% increase in November.
Food prices: Food prices increased 3.9% year over year, the largest increase since 2011.

Core inflation: Annual core inflation, which excludes food and energy, rose 1.6%

 

No you created your premises that conflict with your citations.

And the demand across sectors is a direct quote from your citation.

You don’t know what created that demand. You are way out of your depth. Way out.