I have no idea what all this is about but the one thing I do know is it’s not showing a correlation between the stock market and GDP.
Good point
More likely that it's multiple sources at play. Working this out in advance will be a tough act to pull off. It's even tougher when you consider that public opinion of policies (real or imagined) can have an impact as well. I don't envy being a president
In short, I was saying that correlation does not equal causation, and forward-looking economic models are not much more than a socially conscious, experienced guess. I used two experienced scientists words to support the statement. I could have just said so, but my Google-Foo and e-penis needs boosting
The federal government does have an effect on the economy and U.S. dollar. One may argue that the fall of the British Pound in Obama's second term had nothing to do with the U.S. but rather Brexit. However, that still would not explain why the British Pound / US Dollar stayed at levels bellow that of the 1990's during Obama's second term, Trump, and even Biden. The point is the federal government affects the economy, stock market, and currency, but these three do not affect each other at a large or medium scale.
There are very few examples where one affects the other. A fall in the $ price of gold would cause CHF/USD to decrease. On the other hand, a decrease in gold price would not affect the Euro.
You really are just comparing apples to bananas, they are both fruits but they are different. The same anology goes with the stock market and currency, they are both part of economy, but they are two different entities.
Proof that one does not affect the other.
www.reuters.com
Wall Street roars to record peak on rosy earnings, dollar wilts
U.S. shares bounded to record highs on Thursday helped by strong company earnings and solid economic growth data, though the Federal Reserve's message earlier this week that it is in no hurry to taper stimulus pinned the dollar at a one-month low.
Nestle - the largest food producer in the world - is raising prices from inflation.
B-B-but it's just temporary!!1;one!1!
Keep dreaming, morons.
www.cnn.com
B-B-but it's just temporary!!1;one!1!
Keep dreaming, morons.
The world's biggest food company says prices are going even higher
The world's largest food and beverage company is introducing even bigger price hikes as commodity and transportation costs surge.
www.cnn.com
Do you think that companies are going to just eat operating and manufacturing cost increases, temporary or not? Nothing in that article disproves the inflation being temporary. It actually even has a link that talks about the inflation lasting 8 to 10 months. That sure sounds temporary to me. What the article shows is a company responding to the current costs of doing business. Just like gasoline prices reflect the fluctuating price of oil barrel prices, and demand thru out the year. The only difference is those fluctuations happen much more quickly, and expected. Basically, you are just showing everyone how little you actually know about business and what is going on with inflation in this country.Nestle - the largest food producer in the world - is raising prices from inflation.
B-B-but it's just temporary!!1;one!1!
Keep dreaming, morons.
The world's biggest food company says prices are going even higher
The world's largest food and beverage company is introducing even bigger price hikes as commodity and transportation costs surge.
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Look at the dummy who once again didn’t read the article.Nestle - the largest food producer in the world - is raising prices from inflation.
B-B-but it's just temporary!!1;one!1!
Keep dreaming, morons.
The world's biggest food company says prices are going even higher
The world's largest food and beverage company is introducing even bigger price hikes as commodity and transportation costs surge.
K1052
Elite Member
- Aug 21, 2003
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Our vendors have raised prices mostly because of transportation. The logistics industry went into this thing already short of truck drivers and now its a lot worse. Anything coming from Asia also has a premium due to the drastic in crease in ocean freight costs.
Fiscal policy didn't make people not want to drive trucks in say 2017 and even fewer want to drive them now. Low pay and long hours have plagued the industry for decades. Big retailers that run their own distro chains will pay whatever it takes to get drivers because it costs more to have empty shelves.
Fiscal policy didn't make people not want to drive trucks in say 2017 and even fewer want to drive them now. Low pay and long hours have plagued the industry for decades. Big retailers that run their own distro chains will pay whatever it takes to get drivers because it costs more to have empty shelves.
FelixDeCat
Lifer
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ivwshane
Lifer
- May 15, 2000
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Is that what your feels tell you? Because it certainly isn’t based on reality.
Java:
ERROR: @java.io.FileReader : "File named 'We are currently in an never edning inflation' not found. "
bbhaag
Diamond Member
- Jul 2, 2011
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Overseas freight is insane right now. OTR freight here in the US has increased by about 25-30% but nothing compared to containers coming from oversees. I posted this at the beginning of the the thread but I'll post it again just to reiterate to everyone just how CRAZY 40' container pricing is right now. I've received several emails and phone calls from our vendors and distributors echoing the same thing over and over again.
K1052
Elite Member
- Aug 21, 2003
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Going to take till sometime next year to clear the jams, loose fiscal policy or no.
K1052
Elite Member
- Aug 21, 2003
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Quite a bit from what I’ve read. Basically nil international travel has cut capacity dramatically. Passenger airliners carried a lot of freight (something like 40%) in their bellies. Cargo airlines can’t keep up.
bbhaag
Diamond Member
- Jul 2, 2011
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I'm sure it's insane to but I don't have any insight into how much. I own a retail store so most of the items I purchase are shipped ocean freight to help keep costs down. A lot of the stuff I sell can't be shipped air anyway at least not economically.
For example I buy between 15 and 20 pallets of ceramic pottery every year. Each pallet contains between 100 to 144 pieces making each pallet extremely heavy and cumbersome. Not an ideal situation for airplanes.
bbhaag
Diamond Member
- Jul 2, 2011
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I hope so. I thought last year when the State of Illinois deemed us non-essential and forced us to close was going to be the biggest challenge I would ever face as a small business owner. I was wrong....this year was even worse due to high demand for our products but the inability to get them on my stores shelves. It has been a frustrating year for me because the demand is there I just can't get the product......
FelixDeCat
Lifer
- Aug 4, 2000
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Vic
Elite Member
- Jun 12, 2001
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Remember during Obama 1st term when conservatives cried that the dollar was going to collapse and the housing market would never recover? And so all the loyal conservatives stopped making their mortgage payments so they could buy gold at record highs?
This OMG inflation panic is really no different. And just like back then, it's really kinda funny how easily they are deceived by the most idiotic financial advice.
This OMG inflation panic is really no different. And just like back then, it's really kinda funny how easily they are deceived by the most idiotic financial advice.
He’s comparing the two by saying dishonest people are taking advantage of stupid people in a similar way.
Vic
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Exactly. The problem with being reactionary is that it causes people to have no memory of the past, and no vision for the future, and so they end up believing that the present state is forever. Which leads them to being highly susceptible to grifters and con artists.
Case in point: the economic crisis of 2008, of which the housing bust was a part, was global in scale and in fact larger and more devastating than the economic crisis of 2020. And Hannity did tell people to stop making their mortgage payments because "the housing market would never recover, not in 20 years," while Beck did tell people to buy gold because the dollar was going to collapse. And they both made those astonishingly inaccurate predictions because they were paid handsomely to do (IIRC: Hannity made like a billion dollars buying up the homes he told his viewers to let go to foreclosure... and they still listen to him even after he financially ruined them!)
But back to the topic at hand: suppose high inflation is real and here to stay. And yet right now you can get a 30 year fixed mortgage for 2.5%. It shouldn't take a degree in finance to figure out how to make money in such an environment. And yet all the conservatives, the very same people who love to brag ceaselessly about their economic prowess, are trying to tell us that would be a disaster, just because Hannity told them so.
Vic
Elite Member
- Jun 12, 2001
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