How Consumers Can Manifest Inflation
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- čas přidán 19. 06. 2024
- What people believe may happen to prices in the future can influence actual inflation. “People behave in accordance with their expectations and with their sentiment and attitudes towards the economy,” Joanne Hsu, director of the Surveys of Consumers at the University of Michigan, told CNBC. Watch the video above to learn more about how inflation expectations are measured, why the Federal Reserve cares so much about what Americans predict and how consumer behavior can manifest higher prices.
Chapters:
00:00 - Introduction
01:27 - Inflation mentality
05:36 - Short-term and long-term expectations
09:50 - Wage-price spiral
Produced by: Andrea Miller
Additional Camera by: Mark Licea, Jack Hillyer
Edited by: Amy Marino
Animation: Jason Reginato, Josh Kalven
Supervising Producer: Lindsey Jacobson
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How Consumers Can Manifest Inflation
I would never be able to understand how the Both work hand in hand, honestly , I foresee a recession lasting 2-3 years, and if inflation continues to surge, the Federal Reserve will likely raise interest rates soon. Inflation is causing various issues worldwide, such as food shortages, scarcities of diesel and heating fuel, and significant spikes in housing prices, leading to a potential financial market crash. This global downturn could have long-lasting repercussions. Given the current inflation rate of approximately 9%, my main worry is how to optimize my savings and retirement fund, which has remained stagnant at around $300,000, yielding almost no gains for quite some time.
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The truth is that this is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. My friend just pulled in more than $84k last month alone from his investment with his advisor. That is how people are able to make such huge profits in the market
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
'Vivian Carol Gioia' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this Pointer. It was easy to find her handler, She seems very proficient and flexible. I booked a call session with her.
No amount of data can convince you into believing a lie when groceries are up like 80-130%+ across the board.
Simple e.g. egg cost 2021 $2, 2022 $4 inflation is 100%
2023 egg is $5, suddenly inflation is only 20%
They miscommunicate at the beginning that inflation going down means prices are going down. This isn’t the case, inflation is a rate of change, so inflation going down means prices are still rising just not as fast
@@desperado914Where do you live where eggs are $5.00? Eggs aren’t close to $5.00 where I live.
@@blongshanks77 it was just an example. Pulled numbers out of thin air
Lol it happens when there are more unions and while there is lowest union membership in history, so literally whether people unionize or not is not a factor. She just threw that in there as though it was relevant
@0:05 "Prices have slowly begun to descend". No, the RATE of INFLATION has been descending, not the prices. The rest of the video gets it right.
Crucial. Some prices have indeed fallen from the peaks, but the overall feel is indeed correct.
The only product I have seen drop in price is eggs but that’s because of the extreme shortage being fixed
11:11 “prices are still too high”
"prices have slowly begun to descend" false, the rate of inflation has slowed...
Came here to say this!
Exactly. I cringed at the opening 5 seconds of the video, and I didnt even need my economics degree to know that. Any % of inflation doesnt mean prices descend.
If prices drop, then inflation is negative.
So funny😂
Basic math that these media seem to have a problem processing 😂. It’s like saying the car is in reverse if we lift the gas paddle
What do you mean the US is beating inflation??? Inflation is beating us girl.
We all know that prices of almost everything aren’t coming down. Simply put, they're rising less. Costs are rising due to rising inflation. As we are evidently at the verge of hyperinflation, with the less haves bearing the brunt of the burden. I'm more concerned that the rising inflation may lead my entire $990k retirement funds to lose value. Where else could we put our cash?
I would say the fin-market, but it is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on any shares/ETF you focus on.
Well, since COVID, it has become more difficult to create a strong financial portfolio, I advise you to create a diversification strategy. My coworker advised me to see a consultant. I did, and because to my advisor's assistance throughout this market fall, I actually gained almost $926K in profits. Despite the ups and downs, she employs defensive methods to safeguard my portfolio and generate gains.
@josephbush Really? I’ve actually been looking to switch to an advisor for a while now. Just never made up my mind. Any help pointing me to who your advisor is?
@bezosjesss Sure. There are a lot of independent advisors you might look into. But I only work with HEATHER LEE LARIONI and we have been working together for nearly four years. She has since provided entry and exit points on the securities I concentrate on. She's well-grounded and known, shouldn't be a hassle finding her page.
@jossephbush Thanks a lot for sharing, I just looked Heather Lee Larioni up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Prices are not descending. They just aren't going up as fast which is easy to do since they already have gone up so much.
Yeah that's the point... Inflation of 2% or inflation of 8% still means inflation... trust me deflation could be far worse for the economy.
@@stephen7825 The video said prices are descending. They are not. Inflation is descending and that is not the same as prices.
@@stephen7825 The video said prices are descending. That is not true. Personally it would be great if prices came down. Not sure why that’s bad.
@@sadfasde3108 Under deflation cash becomes a highly valued asset under deflation since a 0 percent return is better than a negative one. Banks have no incentive to make loans since they'd lose money. Defaults would skyrocket, exacerbating the problems we already know about broke consumers, money-losing banks, and frozen credit markets. Everybody would hoard cash and consumers would only buy essentials.
We never going to see pre COVID price. Just like before the 2008 crash, inflation started to shoot up, we had one of the worst recession but price never went back to 2008,
I think the current market presents a good opportunity for long-term gains, but I'm also interested in learning ways to make short-term profits. I want to invest more than $300k, but I'm not sure how to go.
While the current market offers short-term profit potential, it's crucial to note that executing such a strategy requires expertise and skill.
Having an adviser is the smartest approach in today's market, especially for those nearing retirement. I personally gained over $270K during this market downturn, which highlighted that there's valuable insight the average individual may not be aware of.
That's impressive ! I could really use the expertise of these advisors.
My advisor is *Sharon Louise Count* With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé
Corporations and their executives are benefitting a lot.
Come on when was the last time big media lied to us.
Yeah the auto industry is killing it right now
@jacobstones809wow, what a coordinated advertisement you guys have going here
You mean politicians benefit the most
Prices aren’t descending they are increasing at a slower pace. Prices are increasing but inflation is decreasing but still positive.
Let's hope for negative inflation.
This would be an absolute nightmare. If your money is worth more tomorrow than it is today, no one would spend any money and we would come to a grinding halt.
@@nadirwilliams9339 compared to if your money is worth less tomorrow?
@@NealIRC Yup - it's one of those be careful what you wish for situations.
NOTE: HIGH LEVEL EXPLANATION WOULD LOOK INTO IT MORE ON YOUR OWN.
I think an important thing to highlight is that the economy's health is gauged by how much people are spending. The theory is the more we spend in an industry the more money they get. In general, those folks spend that money in a few ways, some of which is expanding and hiring more workers. The other is investing in technologies to make production of that good and service as cheaper to produce (potentially passing that savings on to the customer e.g. why you can buy a 4k tv for $400 bucks when a decade ago it was probably 10x that price).
If your money is worth more tomorrow than it is today you will spend as little as possible of it, because that same dollar amount will buy you more in the future. If we don't spend today those industries can't do the above (hire ppl who will spend money in other places or invest in making production cheaper).
The accepted solution (might be other ways) is to always make your dollar today worth A LITTLE bit less than tomorrow. This way as a consumer you will be more willing to buy today funding these industries and in hopes so that they will hire people who will get paid and spend money in an industry you work in. The gift that keeps on giving. The key point here is A LITTLE, that's why the fed's target is always ~2% not 0%.
This video is good because it shows that economics is really a "social science". If people think their 1 dollar today will only buy 98 cents (2% target) of goods tomorrow then they DO spend but it's not like YOLO spending bc no one knows what the future holds and it's still relatively the same buying power. However, If people think their 1 dollar today will only buy 60 cents of goods tomorrow, now you hit the panic button and start spending MORE today than you usually would. Because the demand is more so too becomes the price on that good or service since it's a limited quantity. The key thing here is that people THINK that will happen and do actions today, like spending a lot more money than they would, making it become a self fulfilling prophecy.
TLDR:
The economy (not individual) wants your dollar to be worth a little less tomorrow because it will incentivize you to spend money today which keeps. the industries growing at a steady pace. If the opposite is true in that your $1 today can buy $1.50 goods tomorrow you are less likely to spend that money and therefore hurt industries that rely on dollars today to pay workers, hire and expand, and invest. That domino effect would basically stop anyone from spending money and industries would have to layoff workers leading to less people spending money and those other industries laying off workers etc...
So it's really a middle of the road approach. If people think their money today will buy less goods and services than tomorrow they will spend more money than they would usually and the increase demand causes increased prices (fixed quantity). The opposite is true if enough people think their money will be able to buy more goods in the future.
@@nadirwilliams9339 if your money is worth less tomorrow, you spend more today and are more broke for tomorrow, worsening your situation.
B.S. - Food inflation created by the food giant corporations is still going up for no reason other than extra profits
Your ignorance is showing. Food prices is a!ways volatile, not to mention you forgot two of the biggest food exporters have been at war for more than a year now.
Food inflation is going up due to limited supply from a number of factors. Grain/Urea from Ukraine and Russia are in limited supply. Government action in certain states has limited agriculture production. EU states are practically banning animal farming. There was a string of arson that destroyed a number of large food processing plants in the United States in 2022.
Proxy War combined with ineffective economic sanctions that backfired on us caused much of this inflation we're currently experiencing.
Prices aren’t coming down. They’re just going up less. Positive inflation is increasing prices.
Would be nice if they set the target to what prices were right before the covid.
I could tell this video was off to a bad start when they said that.....
The effects of inflation are cumulative, meaning the average American can not address it until both inflation rates go down and their wages go up. However, wages go up much slower than the rate of inflation and that's just for the "average" inflation and doesn't account for the several quarters of >5%. Its going to take awhile for the American people to get back to normal, if ever...
Yep. First 5 seconds alone of this video is just misinformation and terribly uneducated. How does one make such a highly produced video on inflation without knowing what inflation even is?
I'm glad to know I'm not the only one who called bull$#+& 10 seconds in 😂
That's the goal of the Fed. 2% inflation means $1 today will be worth $0.50 in 36 years. Currently with it closer to 3%, that means it will only take 24 years.
What is meant by beating inflation is changing the definition of inflation
Ikr 😂 bunch of 🤡. US government is beating the inflation but it’s citizen sure ain’t.
Absolutely.
Thank you for understanding and relaying this.
You've watched and that's your take? 😂Also, who decides the definition of Inflation to begin with? Don't concepts evolve? I'm sure inflation today isn't inflation as understood 80 years ago for many obvious reasons...
@@papi-sauceYou're the genius of the bunch 😂
@@sweebosYeah, sheep needs leaders 😂
It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.
Staying in touch with a financial advisor was my effective strategy. During the pandemic, I outperformed the market, earning about $200k in four months. Its been a remarkable few years for me with my advisor .
I wholeheartedly agree, which is why I choose to delegate my daily investment decisions to a coach. Their specialised knowledge, research, and risk management skills make it challenging for them to underperform. They focus on utilising risk for its asymmetrical potential while mitigating downsides. I've been with my investment coach for over two years and have earned over a quarter-million dollars.
My portfolio has been underperforming recently, and I'm considering a strategy change with the help of a coach. Is it possible to get in touch with your coach?
There are many financial coaches who excel in their profession, but for the time being, I employ Stacey Lee Decker because I adore her methods. You can make research and find out more
@@Rodxmirixm She seems quite knowledgeable and well-educated. I just Googled her name and found her webpage. Thanks for sharing!
Inflation depreciates idle money. I'm in a privileged position to be able to save almost 65% of our net household income, as I placed it on safer investments. The key for us was not spending beyond our means. If you invest and have other sources of income outside of dividends then you will be able to live off dividends. Got north of $200K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further
The main problem is that most folks don’t care about anything other than football, Basketball and Music etc. They find it normal to take credit card debt which will cost them 20percent per year but considers it risky to invest their money and make 10percent or more per month. Learning to avoid high interest debt while also learning how to put your money to work for you by investing is a very powerful combo
This year has been a whirlwind for me. I've been able to get a great new job where I'm making more money. A question, how are you able to achieve all that given that the market has being a mess most of the year?
Working with an FA will help put you through on your wealth-building journey if you're just starting out is a wonderful way to get started and thats how i was able to accrued good gains. That’s why I have been working with ‘Deborah Jean Dykstra’ and that doesn’t make me daft because in financial dealings one have to be prudent.
please how do i find the lady you just mentioned, i'm in dire need of one
Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call
Inflation may go down but prices for goods will remain the same and never go back to pre-covid levels.
Of course, that has always been the way(unless we have serious deflation)
When have prices gone down, in the long run? Most everything costs more than a decade ago, than thirty years ago etc, etc.
Prices have come down? News to me I only see prices going up. I guess houses came down a bit, but food and gas have gone up.
They say you are laying. Get with the good news.
Inflation is the rate of price increase. As long as it is positive prices will always increase. Lower inflation just means prices are increasing more slowly.
My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless.
The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading.
I Agree. I've traded for several months. I barely knew anything about the markets when I started but recently, some at Merritrade advised I get a financial-adviser that has good experience. I did and things changed. My portfolio grew by 150% in 8 months. How was she able to achieve that? She invested my money in reputable companies which their stocks must always rise after any dip.
Awesome. Mind sharing the contact please
Michelle Christine Parker is her name. She's quite known and has got a website. So you can just look her up online
This is true. Forecasts can, at best, give you the slightest idea how the market will fare. It shouldn't be heavily relied upon.
Gold sold for $265 an ounce in the year 2000. Gold is now $2,000 an ounce. 🤔
By changing the definition of inflation, America beats inflation.
Year-over-year inflation stood at 6.5% in December 2022-the lowest that figure has been in more than a year. Inflation was in line with what economists expected and gave many of them a reason to believe that the peak of inflation may be behind us. I have approximately $150k stagnant in my port_folio that needs growth. What is the best way to take advantage of this downturn?
you’re right! The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner.
I'm sure the idea of a coach might sound generic or controversial to a few, but new study by investopedia found that demand for portfolio-coaches sky-rocketed by over 41.8% since the pandemic and based on firsthand encounter, I can say for certain their skillsets are topnotch, I've raised over $400k from an initially stagnant reserve of $150K all within 14months
I've actually been thinking of reaching a portfolio-adviser, my 401k and stocks been losing everything it's gained since 2019, mind if I looked-up this one coach you use?
credits to Mrs Marisol Cordova, one of the best portfolio manager;s out there. she;s well known, you should look her up
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Our economy is so messed up smh
That's the prevailing feel, but our economy is doing better than most others, for better or worse...
At only 1.8% growth? Much of that is from defense contractors building weapons to start or maintain wars. Very misleading it is.
@@xhy12The question is... for who? You or them?
@@genb4374for all USA citizens who work and pay taxes
@@genb4374 Depends on individual circumstances ofc. The good economy could mean higher paychecks for some, but the data leads the Fed to keep rates higher which is bad for people with debts to manage, like credit card, student loans, car loans, mortgage etc.
Inflation is still Rising it's just not Rising as fast don't let them lie to you
Inflation is just beginning. Oil prices are the key.
Gas is 7 bucks in LA lol
2:39, a better analogy is that the car doesn't go any faster (goes to cruise control), rather than the car making a complete stop. The prices are like the car's speed, it sped up a lot and the car is still going hella fast, but right now MAYBE the driver isn't pushing down on the pedal as hard.
You're not going to convince us. Costs are still way to high.
"Beating inflation" is such an ambiguous phrase. Despite graduating from college, going through multiple internships to set myself up, and just generally working hard to get where I'm at, my life has undoubtedly gotten worse and harder the last couple of years because of things outside of my control. You know who was there to help? Nobody, not even my parents
AWWWW Poor poor life.
Inflation was an excuse for major corporations to raise prices disproportionately to the rising cost of goods and amass record profits. For example, Starbucks reported their highest grossing quarter ever when inflation was at its highest. Maybe the cost of raw coffee went up by 3¢ a cup for them, and they raised the price of each cup by 50¢, none of the price hikes of consumer goods was only to “cover the rising costs of materials”
Inflation is not an excuse but a result of increased prices. Any company that adjusts prices to inflation is abusing the inflation to increase revenue and profit.
@@Hans-gb4mv yes exactly, a lot of unfounded price increases
Highest GROSSING like you said. That’s the top line. Have their expenses gone up? Rent? Labor? Also the net profits though they may still go up nominally what is the real increase because, ya know, inflation
@@IStillLikeIke yes, their profits absolutely broke records, like I said. I always think it’s strange when people try to defend major corporations and explain away late stage capitalism greed. Their rent went up? Labor?? They certainly have not raised wages to keep pace with inflation, that’s precisely why so many industries are on strike right now, mainly the writers guild and actors guild. Starbucks is not raising the price of their coffee to pay their workers more, please be serious 😂
@@Itsmarkyoung I’m not making a moral judgement of corporations. I’m saying inflation drives price increases. Record profits are slightly misleading when those dollars are also worth less today because of inflation
I told my co-workers and neighbors that those forgotten stimmy checks are bait and eventually most of working Americans will suffer and here we are. This is just the beginning.
- Said everyone
To start, prices are not coming down, they are just not going up as fast, but they remain on the rise.
doesn't feel like they're beating inflation
6:11 if you give random people 45 min survey interview you will mostly get answers from sertain demografics, like retired, jobless, people without kids etc - who will actually have time and are willing to waste 45 min of their day on some survey. That could be quite biased, not information actually average person would give.
You can't find a placee to live or transportation unless you spend all your money and then some. How is that beating inflation.
Definitely my salary got beaten by inflation 😂😂😂😂😂 u r 100% correct 🎉
For salary earners having a passive source of income is the best thing you could have , because aside the the fact that it isn’t always enough you could lose your job any day at any time , have something to fall back to is crucial , for me it is trading the Forex and crypto market and no I didn’t have that much knowledge to begin to earn that’s why I said passive income, I leave the profit making to the pro like my Advisor 'Catherine Morrison Evans' , who has been doing a wonderful job
Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Not at all, having monitored edge my portfolio performance which has made a jaw dropping $483k from just the past two quarters alone, I have learned why experienced traders make enormous returns from the seemingly unknown market. I must say it's the boldest decision I've taken since recently.
I’ve actually been looking into advisors lately, the news I’ve been seeing in the market hasn’t been so encouraging. who’s the person guiding you?
Big Credits to ''Catherine Morrison Evans'' she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Catherine has been a good guide through the year.
Groceries , gas and rent, mortgages are still sky high. What has came down of those 4 things?......................Ill wait ...............for anyone to give solid evidence
From day 1 if the "science" of Economics up thru the mid 1960's, inflation was defined as raising the ratio of amount of money in circulation to GDP. In practice, that normally translated into financing the gov't by means of creating new money out of thin air rather than by collecting taxes. Then, that became designated as 'Monetary Inflation', and it inevitably led to 'Price Inflation'. Then, sometime in the 70's, we dropped the Monetary Inflation part and simply re-defined the word to be synonymous with 'Price Inflation'. Now we seem to define inflation as being equivalent to the rate at which the CPI is rising. Now, we can't control inflation because we can't even correctly define it.
They are using cooked numbers and wonder why stuff they are trying is not working. Heck real price inflation is close to the monetary inflation from 2020 to today, about 33%.
Thanks to Bidenomics, inflation in September 2023 is 3.4% per annum.
Prices have risen but its far off its peak from June. Its hard to give the fed credit when mainly supply chain pressures have leveled off and gas prices were falling as well. All the fed hikes do is give more money to bondholders and the banks. The rate hikes are inflationary.
lol except bondholders have been suffering huge price declines through the course of the rate hike cycle. It's only in recent months that yields have risen to their peaks which NEW buyers could enjoy the higher yields.
Rate hikes are not inflationary.
I live in CA, if you mean “off” the peak is taken off from the peak, electricity went to five fold, natural gas tripled, gas is almost $7 dollars per gallon, these are compared to earlier this year not mentioning before pandemic. Yeah, fed made a lot of “credit” from our staggering paychecks.
Although I don't like how the fed is reactionary this time around. 5% fed rate is a very healthy number for an economy. It prevents all the asset bubbles the US has seen since Greenspan.
Rate hikes are inflationary and rate cuts are inflationary, something doesn't add up
“Inflation expectations” 😂😂😂😂😂😂😂😂😂😂😂 someone shoot me 2:32
Personal I have cut cable, streaming services, stopped shopping online, and stopped door delivery saving approximately $ 1000 a month. Maybe its time to live a simpler life....
CNBC should be ashamed of even saying that. Need accountability.
I spend $100 every single time I walk outside now. And gas just jumped 75 cents in a week to being at $5 now. My 25% interest rate credit card used to have a 2.5% cash back, they just dropped it to 1.5%. Doesn't seem like it's doing anything.
Gas prices will continue to increase until December. Punishment by the Saudis over the sanctions imposed on Russia.
The thing about inflation is that it is going consistently which means it is growing exponentially eventually the numbers get out of hand very quickly
Once the money are spent we have no more.
Policymakers knows what to do, that’s a fact.
The inflation balances the economical tissue from a massive unneeded outup driving with higher CPI our buying choices.
The important thing is to preserve law of supply and demand avoiding negative disruption of the overly output. The point is to keep the health of the needed stability between the way we produce and the way we sell.
The worst case senario is the spiral that drives us in mad prices but if we operate on fast enough we can guarantee consumers and preserve confidence through economical institutions.
Smart instructed consumers and safe companies are the necessary lead.
Gasoline is over $6 per gallon in Los Angeles and they are telling us inflation is slowing.
$12.99 a pound for sirloin steak.
Bout to field slaughter some cows and blame it on UAP's
Shame on CNBC for this distorted report.
Also inflation only took off in this country when unions were broken down.
It’s actually the opposite
Inflation is "slowing" BUT the price of good today is higher than it was a year ago.
that will always be the case......as long as the economy is growing.
even if the inflation is down, all the prices is still high just not going up as fast, we all still have to pay high prices.
My mortgage just went up again.
And while Ill survive I cant imagine being responsible for taking care of others right now.
has more to do with producers expectations of what prices will do not individuals, but individuals react to the producer price index which producers want to make as much as possible and the cycle continues.
Are the consumers their serving upper middle class, middle class or working poor that is the question.
Everything is super expensive. More expensive than even last year.
People wanted war - we're are paying for it... dearly I'm afraid
how? by increasing inflation for some years and making many many people jobless and homeless
Oh yeah, Wimp Lo style. "I am bleeding, declaring me the winner."
Two words: We're screwed.
Inflation is not down, The FED is as deceitful as this administration. Inflation is out of control by any historical measure.
"The American people have been lied too, The government is utterly and totally unworthy of belief." ~Judge Napolitano
Prices have not come down. The rate of price increases has declined, but prices have not decreased. Whoever wrote the script for this video, and his/her editors and supervisor(s), need to go back to school.
Imagine gaslighting the consumer for causing inflation after printing 5 trillion during COVID. Congressional Money Printer go BRRRRRR and the Fed is stuck financing their debt.
We've done a lot better getting control of inflation than most other countries. Anyone who didn't expect economic disruption from a global pandemic doesn't know much about the new global economy. I'm of an age to remember the stagflation of the 70's when we had double digit inflation AND a contracting economy. Now that was bad.
People will blame the Biden administration no matter how the economy does lol
US workers has hit lower productivity this year than they have in previous years. That didn't occur in the 70s. Maybe we should go back to using typrewriters.
@@Tokamak3.1415 Yet they're still higher than ever with low unemployment due to baby boomers aging out and no one to replace them
it's a matter of perspective, is it better to have low unemployment and inflation be around 3-%, or high unemployment and high inflation... I personally choose the former
@@pudanielson1 Um, no it's not higher than ever. It finally took a turn down. If you graph it, it took a decrease. As in, there's an inflection point and now the rate of change has gone negative. Either the technology is getting worse and hindering us or workers are just becoming lazier. Hence why I made the joke about typewriters.
I for one do almost everything for myself these days because I find everybody around me as incompetent. Plumbers can't fix clogged drain in 1 trip and people at Walmart don't know what isle stuff is located on (although the Costco people are much better). I grow a lot of my own food, do my household repairs and homeschool the kids. I would pave my own street if I could.
Federal Reserve is not beating inflation, they are only trying to make it less noticeable. Inflation is a quiet tax on the poor and lower income.
I make 27% less than i did five years ago. Companies realize consumers have to afford their stuff in order to fuel the economy, right? Im just paying bills over here.
I think if you expand out how far you look at interest rate and go back Ti the 60s and in you can see a cycle of interest rates bouncing between around 6-10% with the 70s be exceptional with years well above 10% and it wasn’t till after the 2000s that we hit these rock bottom 2-3% interest rates that combined with the money printing we are now having to pay for with both higher inflation and interest costs at the same time.
Today's inflation is not caused by too much employment or employees asking for a cost-of-living adjustment. It's too little employment and not enough people working in Manufacturing, Construction, and Agriculture within the US. There are not enough creators for all the takers.
The U-6 unemployment, CPI, and Inflation Expectation are propaganda numbers. The only numbers that matter are the workforce participation, the amount of goods being produced, and the amount of currency in circulation. We are at historically low workforce participation similar to the 1970s. The goods being produced are at a low with China's poor recovery post pandemic, and both China's and the United States' workforce demographics. The amount of currency increased 30%...
Stagflation is coming.
Wages, rent price, and commodities will continue to drive inflation, but US can't afford to raise interest rates any further because of Gov debt.
It's time to buy commodity stocks and gold. Nasdaq and S&P500, are too risky (the gap between 10y bonds return and S&P expected returns is too tight).
If you are afraid to invest, you should buy short-term bonds instead of hold cash.
What is an example of a commodity stock?
@travisalexphoto ETF is better for retail investors like 'USO'
Don't bother reading beyond this. Everyone else in this thread is a bot looking for marks who think they need investment advice.
When a dollar's buying power is 10%-20% less in a span of two years you are not beating inflation. 🤡💲
Inflation mentality:: your unironically describing recursion "your looking at yourself in a mirror with another mirror behind you" endless array of you in a mirror
Fed preciving of you ; trying to perceive the fed
If the fed actually models this ,then this is literally insane
Interest rate goes up = higher costs for businesses = businesses increase prices = higher inflation.
The only way to fix inflation is fixed price on material and gas. 🤔
Who is really thinking " Oh my dishwasher might break soon, better get a new one"....no one. You dont think about it until it dies then you buy a new one.
Gota give Fed credit, doing quite a bit better than most countries and even better than I expected. Probably the most competent and non-partisan organization in the government right now. Thumbs up.
They had early signs and should have assumed what the biggest stimulus package ever made during the pandemic wouldn't increase inflation. It's Powell's fault or whoever is puppeting him
One of the ways it is doing it is by asking CNBC to post videos with false titles like this
Very interesting ❤
inflation coming down does not mean prices coming down. First 20 seconds of this video. Prices are not coming down.
This video is what I like to call propaganda
If you think we are winning the battle on inflation you are asleep at the wheel. If inflation was figured the same way we did in the seventies, we just lived through the highest inflation period in history.
What do you mean by 'beating inflation'? I don't feel like US is winning.
Unemployment does NOT need to go UP for inflation to go down! That is what corporation want us to keep believing. We should also take more of those corporate profits and re distribute them to the people.
No way inflation is down, home/car insurance has increased by 25% this year alone, gas is up at least by 25% as of today since June which means cost or products being transported will be up. Electric price went up 15%, food cost has increased by 10%+. I just dont know how and where they are getting their data from that states that inflation is down.. Plus many are charging fees which is prolly not taken into account for price of items but in reality it increases the cost of services.
When our prices comes down, then that means we are beating inflation which is good. Meanwhile in China, when their prices comes down it is called deflation. But, we say their economy is crashing and that’s bad. What to believe?
It’s a fine balance. When you go too high, it runs wild and your currency and money becomes worthless, eventually it will cause excessive bubbles or complete anarchy and collapse. If prices stop going up at all and instead come down however (deflation), it means no one is willing to invest in that society and there’s no confidence, the economy eventually shrinks and goes into deep recession or depression even. You need inflation but at a manageable rate
It's because consumers are spending their savings, that's what's keeping inflation low.
Once they run out of savings, and burn through their 401k then inflation will sky rocket.
i see gas price up again, after summer! So still too early to claim the trophy IMO.
The gas prices go up every this time every year
I no longer spend on dining out and pleasure, like I did. I can hardly afford the cost of food at the stores.
OK first of all inflation is due to corporate greed and price gouging🙄
Inflation comes from governments, period. Fiat "money" with no work behind it. Printing more and more dollars, for example. "Inflation Reduction Act," for example. Thanks, Brandon.
@@davidb2206 inflation is due to corporate greed and price gouging.. businesses want to ride the wave of “inflation” as their reason for raising prices? As their justification for increasing price? GTHOH!! When can we explain eggs darn near $6+ bucks once upon a time??, gas $4 bucks (back in 1998 when I was 18 gas was $.89 cents). The CEOs and Executives have their board meeting clapping their hands and giving praise on how much BILLIONS they brought in every quarter/every year off of our “the consumers” pockets🙄NO REASON WHY APARTMENT RENTALS $2000!!! Explain why cars, used, now cost far more than a brand new vehicle??? GREED. PERIOD.
Proxy War disrupted global trading. Now we're paying for it.
It’s really the jolts report that matters the most to employment and inflation
Meep
So, price increases that far outstrip(ped) increases in costs has little to nothing to do with inflation?
By raising the interest
Beating ? Wtf ? They are t living in reality
Inflation is caused only by too much money printed by the FED. Therefore, inflation has nothing to do with consumers’ expectations. A recession can be produced if inflation expectation is higher than monetary growth. That’s why expectations are important because they can affect the business cycle but not because they influence inflation.
You have very basic understanding of inflation. Yes, it is partially caused by government spending but it is mostly caused by supply and demand problems.
Supply issues, price gouging, economic growth, wage growth, and government spending all contribute to inflation.
It's caused by excessive consumer spending lol. But yes, money printing does put more money into their hands.
@dwadedunkedkobe
That's part of it. Rising wages fall into your category.
But most of it is due to supply, government spending, price gouging and economic growth.
@@Michael45007 I think the formula PQ = MV explains it all. There's a finite supply of goods and services in the world. Printing infinite money won't fix anything.
@dwadedunkedkobe
I agree with everything except for the last statement. It does solve some problems. Printing money stimulates demand, increase output, and also increase the purchasing power of consumers. This happened with Trump's $800 billion dollars PPP loans.
This works well when managed properly. By doing this, we faced a soft recession in 2020 instead of facing worse depression that would rip the economy apart with unemployment well into 20%. It should only be reserved for times like these.
You have to understand that it is a double-edged sword.
Meanwhile oil prices 🚀
They are taking the housing food and energy when calculating inflation
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly
Within various industries, there exist numerous intriguing stocks that you may choose to track. It is important to note that you do not need to act upon every forecast. Therefore, I would recommend working alongside a financial advisor who can assist you in determining the optimal moments to buy and sell the shares or ETFs you are interested in acquiring
When making new investments, it is essential to have a predefined exit strategy in mind before entering a trade. One effective approach is to consider taking partial profits promptly in order to secure some gains. Personally, I have maintained regular communication with a financial analyst since the onset of the COVID-19 pandemic. In the current market climate, it may be relatively simple to invest in trending stocks; however, the challenge lies in determining the optimal timing for both buying and selling. With the assistance of my advisor, who decides the entry and exit commands for my portfolio, I have managed to accumulate over $550,000 in just under a year.
Please who is the financial adviser that assist you with your investment and if you don’t mind, how do i get in touch with them?
My consultant is VALERIE ELLEN CIRBO I found her on a Bloomberg business interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can look her up online if you care supervision. I basically follow her trade pattern and haven’t regretted doing so
Thanks for sharing, just looked her up and I'm super impressed with her credentials. I will be writing her shortly
The narrator starts out saying "Prices have slowly begun to descend. . .', and that's for the most part a big lie!. The only thing that has "begun to descend" is the RATE at which they are rising. Except for isolated items, prices are still going UP every gawdam day, just at a slightly lower rate!!
The mercury laboratory, the final budget for every year since 2007 until now, amending the papers and ownership in my favor, agreeing on the percentage of the future, clarifying what artificial intelligence is and how to preserve my privacy in the future, and how companies and governments have profited from artificial intelligence. I mean, the complete facts are the path to guidance.
What I'm getting from this information: 1) Pay off debt 2) Hold cash 3) Interest rates will rise and this will force bad companies out of business so do not become tangled up with these companies (through employment or investment)
Always informative. Thank you
I wonder how Uni of MI selected the samples for their data. it seems they might have skipped people who live in Southside of Chicago or the South. someone's perception of reality is skewed.
I don't know what data the FED has looked at. I've noticed car prices and prices of a lot of items sold at Walmart haven't gone down; content [weight] of some items are also shrunk.
Inflation survey is full of holes. The data is low frequency and done with a limited list of goods and services. In addition it is difficult to measure replacement and productivity as well technological advancements. Which are all disinflationary
Gas where I’m at is 3.33 a gallon Georgia prices
Is 2 dollars a litre here 😂