DiabloWags said:
dimitrig said:
wifeisafurd said:
At the same time, U.S. inflation has continued to accelerate particularly for food staples, but also for long term items such as housing and heath insurance costs (so much for blaming everything on temporary C-19 shortages), European inflation has skyrocketed. Germany, with its normal stable economy, has had inflation hitting a 40-year high at its most recent reading of producer price inflation just hit a jaw-dropping 25.9 - this before the Ukraine war started and gas prices climbed.
So let's play the US now is In a global economy game. Another concern is that the highest inflation rate in generations abroad could lead to increased inflation expectations, which could create a vicious cycle of higher expectations creating even higher inflation. The FED considers inflation in the US basically a nothing burger with a 2% inflation target - that may change.
Amazing how Brandon is also ruining the German economy with his policies!
What's NOT amazing is that the poster who claimed that Sacramento is part of the Bay Area and that there is plenty of water in California.... just not enough reservoirs, or that a 50% collapse in the stock market wouldnt be a big deal - - - is the same guy that has no clue that Germany's current inflation rate at a 40 year high (as well as the rest of the Eurozone) is due to Russia attacking Ukraine, causing natural gas and energy prices to surge by 45%.
Please tell me you did not go to CAL.
Europe has issues. It is not just Germany, but most of the EU countries that are having huge inflation. The inflation came before Ukraine, but has been made worse by Ukraine.
The official reasons given have changed, but Madame Lagarde started by blaming supply shock from the pandemic, and higher food prices. For example, supermarket shelves in Germany were empty, as consumers have snapped up more than their share in anticipation of potential shortages. She indicated that the problems were exacerbated by lengthy transport strikes (some of which were protests against government C-19 restrictions). Also there were higher prices regionally in clothing and hospitality and leisure services post-lockdown as some European countries had more burdensome C-19 controls than others.
Her latest and greatest, is that the inflationary impact of the Ukraine war has triggered a surge in the price of oil, gas and other commodities. With the war pushing up prices, she has predicted "slashing growth and draining consumer and business confidence" (she is gone into a be prepared for stagflation mode). Per Lagrade in her latest speech: "Clearly, the longer the war lasts, the higher the economic costs will be and the greater the likelihood we end up in lengthy adverse scenarios."
One difference from the US, which has a tight jobs market, is the outlook for the EU labour market, which also worsened as consumer unemployment expectations rose sharply and employment expectations dipped in most sectors, except for basic services, again per Madame Lagarde.
The tone of the language between Lagarde, and her US counterpart Powell, are quite different at the risk of understatement.
