Harsh Reality

Stryde

Stryde

0
Friday's economic report does not bode well any of us!!

U.S. consumer prices accelerated in May at the fastest rate in 40 years, as we grapple with a surge in the cost of supplies, fuel, equipment, food, and shelter, data showed Friday, June 10th!!!

The Bureau of Labor Statistics' May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

On a month-over-month basis, the broadest measure of inflation climbed 1.0%, compared to 0.3% in April. "Core" inflation, which strips out the more volatile costs of food and gas, rose 6% over the prior year in May, more than the 5.9% that was expected!!!

No business owner needs me to tell them this! It's pretty obvious when you shop for anything, if you can even find it!!!

Larry
 
Stryde said:
Friday's economic report does not bode well any of us!!

U.S. consumer prices accelerated in May at the fastest rate in 40 years, as we grapple with a surge in the cost of supplies, fuel, equipment, food, and shelter, data showed Friday, June 10th!!!

The Bureau of Labor Statistics' May Consumer Price Index (CPI) showed a year-over-year increase of 8.6% last month, up from 8.3% in April. Economists were expecting an 8.3% increase in May, according to estimates compiled by Bloomberg.

On a month-over-month basis, the broadest measure of inflation climbed 1.0%, compared to 0.3% in April. "Core" inflation, which strips out the more volatile costs of food and gas, rose 6% over the prior year in May, more than the 5.9% that was expected!!!

No business owner needs me to tell them this! It's pretty obvious when you shop for anything, if you can even find it!!!

Larry
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Hi Larry, strange introduction.

Since it sounds like you are pretty focused on economics and inflation, then I am certain you have invested, hedged, and overall prepared yourself for this inevitable situation over the last few years. I am nowhere near as precise as you are on the stats, and I have completely prepared; hedged and insulated myself for this inevitability. So, in short, I am glad to hear you are doing so well as your introduction.
 
So, the answer is life guys are going to have more struggles over time.

Inflation was coming, no matter who was in office. That's the price you pay when you flood a whole mess of currency into the market while supply chains are weakened.

To curb it, we have to go through some major pains increasing interest rates and stop the flow of cheap money. Ultimately, that throws us into a recession.The solution is that we should have never gotten off the gold standard, but that was before I was born.
 
People ask why inflation this time ? The feds been printing like a drunken sailor for over 20 yrs . That's easy . This is the first time we handed out free money to low income , self employed and every business owner weather legitimate or not . Wether Bezos or Musk is worth $100 bil or $300 bil doesn't affect inflation . They don't spend the incremental wealth . When I had a blind Medicaid client ask his wife on Medicaid check the account online for the stimulus I knew we were screwed. The avg person that's given money spends it . Too much money in the system causes money to lose value as it's too many dollars chasing to few goods .



The fed refused to let the system wash out over the last 30 yrs and keep pumping it full of morphine . Now the hangovers here. Inflation has brought the fed to its knees . They must cause a recession to destroy demand to slow inflation . The poor fe and mapd clients are getting destroyed by inflation . Me and my friend are seeing more nsf's on policy's 5 yrs and older . Let's not be naive . When it's between food and ins then ins gone .
 
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DonP said:
Me and my friend are seeing more nsf's on policy's 5 yrs and older . Let's not be naive .
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I lost two DI clients in the last two weeks. They canceled their policies that were several years old. I tried to reduce them instead but they insisted on just eliminating the "bills" altogether.

I almost NEVER lose disability insurance clients. They just don't lapse.

Spoke to them both and they were "cutting corners" because they couldn't get materials to do their jobs and people weren't hiring them as much.

Both have over 20 years in their respective businesses. Both make over 100k per year (I have their tax returns).

To me, that's pretty scary.
 
Tahoe Ray said:
Both have over 20 years in their respective businesses. Both make over 100k per year (I have their tax returns).

To me, that's pretty scary.
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True story:

I went out and got a 3 day a week temp job. We're not hurting for money. When I told my wife, she asked me why did I do that and was telling me she doesn't know if she wants me to (she thought it was overnight.)

I like to diversify my income sources. I sell insurance, I'm hired as a freelance writer, I have investments, and I work a part-time job and none of that interferes with my quality of life.

While inflation is horrible... I want the extra cash flow to invest through this "not a recession" recession as that's how you get rich.
 
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