Inflation hits new 40-year high as gas, food rent costs surge. Another big rate hike appears likely

[Mac-7]

Please elucidate, I don't understand your criticism.

The topic of this thread is inflation and holding biden responsible for it

I saw it as you trying to paint biden critics as crybabies

 

[Woodznutz]

The topic of this thread is inflation and holding biden responsible for it

I saw it as you trying to paint biden critics as crybabies

Not my intention at all.

 

[Stryder50]

How the Fed ended the last great American inflation — and how much it hurt​

Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it played out.
...
For decades, the polling company Gallup has been asking Americans to list the most important problem in their country. Many of the answers are vague: 19 percent of Americans in May told Gallup that “the government” or “poor leadership” is the most important problem facing the US. Others reflect recent news (5 percent named abortion, up from 1 percent in April), or evergreen topics of controversy (8 percent named immigration).

But the biggest economic issue listed these days, by far, is inflation: 18 percent of Americans listed it as the country’s biggest problem. On Wednesday morning, the latest Consumer Price Index release showed prices up an astonishing 9.1 percent, “the largest 12-month increase since the period ending November 1981.” Even excluding food and gasoline prices, inflation was at 5.9 percent per the CPI, markedly higher than recent years.

As the chart below (which doesn’t include the most recent survey) shows, this is a pretty radical change from recent history. From 1990 to 2020, a tiny share of Americans, always under 10 percent and usually much lower than that, listed inflation as the country’s biggest problem. But the level of concern is still far, far lower than it was in 1981 when the data set starts. That year, a majority of Americans listed inflation as the country’s biggest problem.
...

In 1981, the US was in the midst of a second brutal stint of double-digit inflation in less than a decade. Gas prices were through the roof; mortgage rates were sky-high, keeping many middle-class people from being able to buy homes. The job market was weak, too, with unemployment above 7 percent. The nation was in full crisis.

The crisis would end, and most economists give credit for ending it to Paul Volcker, the chair of the Federal Reserve. Volcker got inflation under control through the economic equivalent of chemotherapy: He engineered two massive, but brief, recessions, to slash spending and force inflation down. By the end of the 1980s, inflation was ebbing and the economy was booming.
...

How the Fed ended the last great American inflation — and how much it hurt

Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it played out.

www.vox.com

 

[Fort Fun Indiana]

In a time of crisis you would think that our oil wouldn't be allowed to be sold across the pond regardless of who got it up out of the ground, otherwise until our security needs are met..

But that isn't how our reserves work. Else, other countries wouldn't enter into global agreements with us re: "only using our reserves for ourselves". When we release oil from the reserves, it gets sold to the highest bidder. Same as the oil out of the ground.

Else -- get this, because it is counter-intuitive -- you would actually cause a shortage, by just flooding the US market with our reserves.

You would first reduce prices, but that would then cause shortage, as companies won't sell as much oil here, when they can sell it for more to someone else.

 

[Woodznutz]

How the Fed ended the last great American inflation — and how much it hurt​

Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it played out.
...
For decades, the polling company Gallup has been asking Americans to list the most important problem in their country. Many of the answers are vague: 19 percent of Americans in May told Gallup that “the government” or “poor leadership” is the most important problem facing the US. Others reflect recent news (5 percent named abortion, up from 1 percent in April), or evergreen topics of controversy (8 percent named immigration).

But the biggest economic issue listed these days, by far, is inflation: 18 percent of Americans listed it as the country’s biggest problem. On Wednesday morning, the latest Consumer Price Index release showed prices up an astonishing 9.1 percent, “the largest 12-month increase since the period ending November 1981.” Even excluding food and gasoline prices, inflation was at 5.9 percent per the CPI, markedly higher than recent years.

As the chart below (which doesn’t include the most recent survey) shows, this is a pretty radical change from recent history. From 1990 to 2020, a tiny share of Americans, always under 10 percent and usually much lower than that, listed inflation as the country’s biggest problem. But the level of concern is still far, far lower than it was in 1981 when the data set starts. That year, a majority of Americans listed inflation as the country’s biggest problem.
...

In 1981, the US was in the midst of a second brutal stint of double-digit inflation in less than a decade. Gas prices were through the roof; mortgage rates were sky-high, keeping many middle-class people from being able to buy homes. The job market was weak, too, with unemployment above 7 percent. The nation was in full crisis.

The crisis would end, and most economists give credit for ending it to Paul Volcker, the chair of the Federal Reserve. Volcker got inflation under control through the economic equivalent of chemotherapy: He engineered two massive, but brief, recessions, to slash spending and force inflation down. By the end of the 1980s, inflation was ebbing and the economy was booming.
...

How the Fed ended the last great American inflation — and how much it hurt

Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it played out.

www.vox.com

And like today it began with doubling of oil prices.