Wealth inequality and the Fed's inflationary monetary policy

[SilverSamurai]

Asset bubbles froth
As inflation taxes wealth
Goodbye middle class

 

[Joe King]

equal right s is a myth.

Because people pay different amounts.

If you had to pay for milk 50x what everyone else was paying, wouldn't you expect to get to be at the front of the line too? It would only be reasonable.

Everyone paying the same makes everyone have the same pull with the gov as you or I do now.

 

[WinkWink]

 

[pmbug]

Over time, higher costs and sluggish wage growth have left more Americans financially vulnerable, with many known as “ALICEs.”

Nearly 40 million families, or 29% of the population, fall in the category of ALICE — Asset Limited, Income Constrained, Employed — according to United Way’s United for ALICE program, which first coined the term to refer to households earning above the poverty line but less than what’s needed to get by.

That figure doesn’t include the 37.9 million Americans who live in poverty, comprising 11.5% of the total population, according to data from the U.S. Census Bureau.
...
The term ALICE “essentially describes what people in the lower middle class have seen for decades, they can just cover current needs but not easily generate a surplus to cover the cost of a home or investments like stocks or bonds,” said Columbia Business School economics professor Brett House.

“It’s an acute situation for more people now than a few years ago,” House added.

Stubborn inflation has driven many households near the breaking point, but the pain of high prices has not been shared equally.

By most measures, low-income households have been hardest hit, experts say. The lowest-paid workers spend more of their income on necessities such as food, rent and gas, which also experienced higher-than-average inflation spikes.
...

More:

https://www.cnbc.com/2024/04/29/29percent-of-us-households-have-jobs-but-struggle-to-cover-basic-needs.html?qsearchterm=29%25%20alice

I spent a little bit of time skimming over the United for ALICE website and that 29% figure was from data collected in 2021. I don't see where they might have published any data more recent than that:

National Overview | UnitedForALICE

www.unitedforalice.org

 

[pmbug]

Some of America's best-known corporations are saying their consumers are being pinched by inflation as prices continue rising.

Inflation has dominated corporate America's discourse over the past three years following the pandemic-induced easing of monetary policy and trillions of dollars in Covid relief. Though the pace of price growth has cooled since the Federal Reserve began raising interest rates in early 2022, consumers are still feeling the squeeze — and often tightening purse strings — as costs continue climbing.

"It is clear that broad-based consumer pressures persist around the world," McDonald's

CEO Chris Kempczinski said on the fast food chain's earnings call early Tuesday. "Consumers continue[d] to be even more discriminating with every dollar that they spend as they faced elevated prices in their day-to-day spending."

Sticky inflation has created a dark cloud over how everyday Americans perceive the health of the economy. Consumer confidence in April hit its lowest level since mid-2022 as high prices remained top of mind, according to data released Tuesday by the Conference Board.

Worker pay has continued rising, as evidenced by first quarter employment cost statistics released Tuesday. But so, too, have the prices paid by the typical consumer, biting into the extra income from those higher wages.
...

More:

https://www.cnbc.com/2024/04/30/companies-from-mcdonalds-to-3m-warn-inflation-is-squeezing-consumers.html

 

[Casey Jones]

Inflation always destroys an economy.

That's part of the cycle. As a society ages and ossifies, the Elites jettison morality or appreciation for their privileged class and ranks. Fiat money, currency debasement and resultant seigniorage (the privileged elites getting first access to the new money) immediately makes the chosen classes prosper.

So it's continued and usually amped up. The bourgeoisie and merchant classes see their savings destroyed, their costs explode, their customer base evaporate. Those who once had income, from their craft or their customer base, now have it cut or find themselves unable to find employment. Poverty abounds; social unrest grows. Depending on the culture, either the masses settle into a huge starving hoard, or they riot and the leadership is exiled or executed.

The end result is the same, though. The economy collapses and the society loses all structure, all social order and control.

We're seeing it now. The cheapest prepared food, probably in all human history, is the McDonald's hamburger. And now people cannot afford it. For 90 years, our society has been rich enough to support cafes, diners, and then fast-food...now, the average person cannot afford it.

It's the Grapes of Wrath writ large and in real-life. Worse...back then, the victims of that economic collapse had family and faith. We have none of that; and HUGE numbers of the population are neurologically damaged by this Satanic medical experiment.

 

[searcher]

Title says it all. Mario talks about inflation, government, currency debasement and more. Couple of links to good reads in this one.

Inflation and Government: The Biggest Threats to Your Prosperity.​

Sep 26, 2024 #money #banking #currency


25:35

- What Has Government Done to Our Money? by Murray N. Rothbard: https://mises.org/library/book/what-h...
- The Raven of Zürich: The Memoirs of Felix Somary: https://archive.org/details/theraveno...

 

[Joe King]

Title says it all. Mario talks about inflation, government, currency debasement and more. Couple of links to good reads in this one.

Inflation and Government: The Biggest Threats to Your Prosperity.​

Sep 26, 2024 #money #banking #currency


25:35

- What Has Government Done to Our Money? by Murray N. Rothbard: https://mises.org/library/book/what-h...
- The Raven of Zürich: The Memoirs of Felix Somary: https://archive.org/details/theraveno...

Do you understand, and agree with what the guy in the vid stated?

 

[searcher]

Do you understand, and agree with what the guy in the vid stated?

GF and others are laughing hysterically.

 

[Joe King]

GF and others are laughing hysterically.

Was asking, as in other posts you seem to be in favor of gov inflating the money supply.

 

[searcher]

Was asking, as in other posts you seem to be in favor of gov inflating the money supply

Can you show me where I said anything like that?

 

[Joe King]

Can you show me where I said anything like that?

Your always posting about gov free health care, education and all the wonderous stuff they should be doing for us.
All that on top of $35T in debt isn't DEflationary, after all.

The ones who have inflated our currency and saddled us with debt are the ones you seem to voice support of.

Kackles wants to inflate even more, as she will need to to pay for the so-called "opportunity economy" she wants us to have.

The money sure can't come from taxes.

 

[searcher]

The money sure can't come from taxes.

Now I might be wrong here so correct me if I am.

- Single payer health care = yes, I'm all for it.
- Free education up to and including high school = yes, I'm all for it.

First, we would have to curtail military spending. Check this thread out to see what we spend on that:

Military Spending, DOD Contracts, National Defense $$$$

Your tax dollars at work. Contracts For April 28, 2023 https://www.defense.gov/News/Contracts/Contract/Article/3378570//

www.pmbug.com

It's bookoo bucks.

Second, we stop giving super-duper rich peeps and big businesses all sorts of tax cuts. Again, bookoo bucks.

Third, we end foreign aid unless we get a direct benefit from it. Even more bookoo bucks.

I think we could do it that way.

Now, as to free education.............I never said college should be free.

I may actually be more of a capitalist than you think. I just believe it's the government's job to take care of peeps, not the MIC, foreign countries and rich peeps.

 

[pmbug]

This is Kevin Warsh, former Fed Governor, talking at the Brooking Institute back in 2015, but I saw it this morning for the first time:

The Hutchins Center on Fiscal & Monetary Policy recently posed a question that has been generating substantial public attention: Did the Federal Reserve’s quantitative easing contribute to the growing inequality in the U.S.?

 

[nickndfl]

The problem is we are not in a free market in the USA. It is a hybrid planned economy where the government frequently picks winners and losers. At some point bad businesses should be allowed to fail and create space for new more efficient entities.