The highest inflation in 40 years is deeply
embedded in the economy and spreading
Fox Business,
by
Larry Kudlow
Original Article
Posted By: Moritz55,
9/14/2022 9:22:55 AM
Today's CPI inflation report shocked Wall Street and the nation with a significantly higher than expected print. Pollyannas everywhere are painfully learning that there's no magic cure. There's no easy way out. After several years of excessive federal spending, regulating, taxing and money-printing, the highest inflation in 40 years is deeply embedded in the economy and it is spreading. The only significant decline came with gasoline prices.
Overall, the topline CPI came in at 8.3% for the year — food up 11.4%, even energy is still up 24%. Electricity is up 16%; natural gas 33%; new cars 10%.
Reply 1 - Posted by:
udanja99 9/14/2022 9:27:26 AM (No. 1277130)
I’m no financial expert but it seems to me that the beginning of the easy way out is to…
Drill, baby, Drill! Re-open the entire petroleum industry and a lot of this goes away.
26 people like this.
Reply 2 - Posted by:
MickTurn 9/14/2022 9:29:14 AM (No. 1277133)
When Joey Perv Xiden F's things up he does a really good job! That must be his only Talent!
12 people like this.
Reply 3 - Posted by:
Zeek Wolfe 9/14/2022 9:39:19 AM (No. 1277149)
The communists in the Democrat party couldn't be happier. They see inflation as a way to ruin our country and a path to permanent power.
13 people like this.
Reply 4 - Posted by:
downnout 9/14/2022 9:47:43 AM (No. 1277162)
Instead of permanent power, the ‘rats may find themselves stretching ropes. People are becoming very, VERY angry.
6 people like this.
Reply 5 - Posted by:
LC Chihuahua 9/14/2022 10:09:35 AM (No. 1277186)
Agree with drilling. Energy prices go down when there is more energy. Will that be enough to offset inflation though?
My question is how much does the debt have to do with inflation? Guessing the dollar is losing value, and we continue to spend money we do not have at all levels. We are being forced into adjusting our spending habits. If we continue to spend at current levels, inflation will continue to get worse.
6 people like this.
Reply 6 - Posted by:
red1066 9/14/2022 10:19:31 AM (No. 1277193)
Just think how high inflation would be if that inflation reduction act wasn't passed.
9 people like this.
Reply 7 - Posted by:
jalo1951 9/14/2022 10:38:42 AM (No. 1277205)
Socialism? No, we are teetering on the brink of communism nirvana. It is only a matter of time before these asshats decide to take over all utilities and it will snowball from there. Be afraid America.
6 people like this.
Reply 8 - Posted by:
MDConservative 9/14/2022 10:44:09 AM (No. 1277212)
Larry, last week you were singing a different tune. And now you advocate "supply side" remedies where the supply side is the weak side of the supply/demand equation. Think, Larry...there's not enough stuff in the marketplace. The limited supply means people bid up the price they're willing to pay. That's the way it works, Larry. Stimulating the economy with "tax cuts" and such is BS, and you know it. Hell, the politicians just passed a farcical "Inflation Reduction Act" that spends money to save money, if you can believe that.
Go back in your memory to 1981 when Reagan took office. Until then no politician, from LBJ and Nixon, through Ford and Carter would dare administer the bitter medicine to the economy as inflation reached the stratosphere and the economy was just ambling along at a slow rate. Reagan and Volcker did what had to be done, and it still took years to wring out inflation and rebuild/balance American economic activity. It nearly cost him re-election as it was until the pudding was served. And that's what need to be done now. It won't be. And when someone finally takes the corrective actions, like much higher consumer interest rates, the "real conservatives" will be squawking with the rest in protest. They'll cry even decades later about the eventual loss of those 10 percent bonds.
4 people like this.
Reply 9 - Posted by:
planetgeo 9/14/2022 10:47:46 AM (No. 1277219)
The energy sector (oil, natural gas, nuclear, AND electrical GENERATING CAPACITY) is the key to revving our economy back up and getting inflation under control again. As long as the Dems are in control and actively suppressing our entire energy sector, our economy will be in the dumps and inflation will continue to spiral upward.
A real pro-American (i.e., non-Democrat) President and Congress could turn it around pretty quickly.
5 people like this.
Reply 10 - Posted by:
nwcudagal 9/14/2022 11:25:53 AM (No. 1277264)
"The only significant decline came with gasoline prices." Where I live gasoline is still over $4.70/gal. Diesel is still at $5.13+. I haven't seen a noticeable decrease so I'm not buying the spin.
4 people like this.
Reply 11 - Posted by:
cor-vet 9/14/2022 11:58:38 AM (No. 1277291)
I predict that the lower gas prices will rebound to their previous high or higher, after the mid-terms, should Dominion win!
4 people like this.
Reply 12 - Posted by:
davew 9/14/2022 12:31:53 PM (No. 1277312)
Comparisons of the cause of the current inflation cycle with that of the 1970's is a mistake. In the 70's the government was spending on high skill technical and defense companies as part of the space program and the Vietnam War. The wages for these engineers accelerated enormously over the average wage earner and they spent as fast as they could on the limited supply of consumable stuff that was available. This was classic demand side inflation.
When the government decided (mistakenly) to shutdown businesses in 2020 because of the pandemic they voluntarily reduced the productive capacity of goods and services available for consumers. At the same time, they implemented the PPP plan to pay people that weren't working making it possible for them to buy the usual amount of needed goods and services despite the reduction in supply. This was a worldwide phenomenon that affect Chinese imports as well. In addition, many of the people in the shipping industry decided to stay home causing the supply chain bottlenecks that added to the price hikes. This was a supply side induced inflation and is unwinding fairly quickly. It was also self-induced suffering based on bad medical advice and not just fiscal overspending.
3 people like this.
Reply 13 - Posted by:
MDConservative 9/14/2022 2:54:08 PM (No. 1277402)
#12 - The common denominator then and now is "GOVERNMENT SPENDING". In "good times" Congress and the President cannot help but to dole out big bux. In "bad times" it becomes imperative to "do something". Both then and now were/are building crises caused by GOVERNMENT SPENDING, whether Vietnam and a Space Race, or COVIDS, PPP and Stimulus, etc. It takes time for the market distortions to kick in, and in today's case the inflation began to build in 2020 as $14 TRILLION made its way into circulation. For example, in February 1971 the prime rate was 4.5%, about the historic average. By July 1974 it was 12%. December 1980...21.5 PERCENT!! So the prescription is to put MORE into the pot atop Biden's TRILLIONS? C'mon.
Money is still historically cheap. Consumers are not only buying, but bidding up prices in some cases in the frenzy as credit is the new currency. "Supply Side" solutions are a Laffer in this instance. The demand side needs attention...and that's why no politician will touch them. No one wants to be the Grinch in an "impossible" situation.
And, yes, there are global consequences.
0 people like this.
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