Why Fed Interest Rate Increases Won’t Bring Inflation Down

[LIBrty4all 3,749]

Quote

Why not? The problem that needs to be solved is out of control energy and food prices. To solve it, one option might be to increase the supply of energy and food so much that their prices go down.

 

In the interim, the profits of energy and food purveyors are soaring as they keep raising prices faster than their costs. Rising interest rates will not solve the production shortages that enable these rage-inducing price increases.

 

Instead, those rising interest rates are slashing the value of investment portfolios and raising mortgage and loan rates which are putting a lid on real estate prices.

 

 

https://www.forbes.com/sites/petercohan/2022/11/02/why-fed-interest-rate-increases-wont-bring-inflation-down/?sh=63c319b510c3

[TBoneTX 45,267]

Exactly.  Agree with Milton Friedman that inflation is a monetary phenomenon.

[Nature Boy 2.0 8,370]

3 hours ago, LIBrty4all said:

 

 

https://www.forbes.com/sites/petercohan/2022/11/02/why-fed-interest-rate-increases-wont-bring-inflation-down/?sh=63c319b510c3

I do think interest rates approaching 6% on a 72 month loan for 720+ Beaco scores is going to tap the brakes on car sales and give inventory a chance to catch up, which will result in discounted prices and other incentives coming back into play.

 

Toyota put some assistance on access cab tacomas. First lease assistance in over 2 years.

[LIBrty4all 3,749]

30 minutes ago, Nature Boy 2.0 said:

I do think interest rates approaching 6% on a 72 month loan for 720+ Beaco scores is going to tap the brakes on car sales and give inventory a chance to catch up, which will result in discounted prices and other incentives coming back into play.

 

Toyota put some assistance on access cab tacomas. First lease assistance in over 2 years.

You're missing the point.  Loans are NOT the driving force of our inflation.  Energy and food are.  I can live without a new car.  I cannot live without food.

[Nature Boy 2.0 8,370]

7 minutes ago, LIBrty4all said:

You're missing the point.  Loans are NOT the driving force of our inflation.  Energy and food are.  I can live without a new car.  I cannot live without food.

No I got it. Agree. Herschel said in the debate that lowering insulin prices would do no good cause insulin would do no good if people did not eat right. He then went on to say people has to be able to afford decent food , highlighting the problem with inflation. 

 

Of course the media took it way out of context and reported Herschel said the problem with diabetics is they just need to eat healthier.  Or words to that effect.

 

As I have said in other posts, the price of Diesel affects almost everything you touch. As you know I was a plant/Operations manager for many years. Trucking companies charge a flat rate for a "lane", point a to point b. They also charge a fuel surcharge, wich can 1000s to a single lane.

[LIBrty4all 3,749]

15 hours ago, Nature Boy 2.0 said:

No I got it. Agree. Herschel said in the debate that lowering insulin prices would do no good cause insulin would do no good if people did not eat right. He then went on to say people has to be able to afford decent food , highlighting the problem with inflation. 

 

Of course the media took it way out of context and reported Herschel said the problem with diabetics is they just need to eat healthier.  Or words to that effect.

 

As I have said in other posts, the price of Diesel affects almost everything you touch. As you know I was a plant/Operations manager for many years. Trucking companies charge a flat rate for a "lane", point a to point b. They also charge a fuel surcharge, wich can 1000s to a single lane.

Yup, agree on all of that.  And no amount of "green pushing" by the current admin is going to overcome the need for diesel for at least the next 10-20 years.

 

I like that the interest rates are slowing (will soon be reversing, hopefully) the gross over-pricing of homes the past two years.  I have been refusing to buy when the prices are so high, and now the interest rates are up, so waiting on both to come back down again.

[Dashinka 24,489]

5 hours ago, LIBrty4all said:

Yup, agree on all of that.  And no amount of "green pushing" by the current admin is going to overcome the need for diesel for at least the next 10-20 years.

 

I like that the interest rates are slowing (will soon be reversing, hopefully) the gross over-pricing of homes the past two years.  I have been refusing to buy when the prices are so high, and now the interest rates are up, so waiting on both to come back down again.

There is really no way long haul trucks are going to go EV anytime soon.  Sure we might see some EV tractors in marshaling yards, at ports, or for local runs, etc., but to get any distance the tractor will weigh several more tons than they already do.  Other options might be fuel cell, but it will take quite some time for the H2 infrastructure to meet that need and the most likely source of H2 is, you guessed it, oil.  I do wonder why no one ever adapted a locomotive system for Class 7/8 trucks, use a Diesel engine to generate the power and traction motors with great torque to drive the wheels.

 

Regardless, we will be into diesel for a very long time.