One good thing anout inflation driving up COLA fot social security,
they don't go negative when inflation peaks, so you would keep all of what the check went to and have much more buying power as inflation drops, could take a 10-15 years though.
One good thing anout inflation driving up COLA fot social security,
they don't go negative when inflation peaks, so you would keep all of what the check went to and have much more buying power as inflation drops, could take a 10-15 years though.
Oil did not peak until 1980 at $140.
With this admiistration, it might not peak for many years and probably
$150 per barrel. So, $7 gasoline easy.
Gold has either been putting in a long term bullish cup and handle or it was
driven up to 1980 prices artificially by QE and there is no advancement in gold from here,
that has no bearing on inflation where its going though.
The 70's bear market actually started, topped, in Jan. of 1966 and did not end until the low in 1982. That was not a 4 year bear,
it was 16 years long, nearly twice as long as 2000-2009, and there were no old high retests like in the 2000-2009 market. CPI did not peak until 1982, the social security COLA was 14% that year and Fed funds rate 20%. The COLA was 8% in 1975, they are now estimating next years COLA will be 8.6% at current inflation rate. The bear market of the 70's did not correct the inflation problem, it took 16 years to do that and 20% ultimate Fed funds rate. So, even if we drop 50%, the problem likely will not go away for a decade at least. And if the Fed thinks that inflation will improve with any amount of QE, they are just wrong. Inflation plateaued in 1975 around 8% for years and then skyrocketed again
in 1980-1982.
Whty was inflation ignored when comparing this rate increase cycle to the one in 2014, I expect
now they should go all in long at 4k and take their medicine.
2022 social security COLA was calculated in 3rd qtr of 2021, it was 5.9%, a jump from 1.3% the prior year, this was known well before the March
2022 Fed meeting and hike, 2014 the COLA rate was 1.2% when the rate hikes started. Why was this ignored and just banked on the low will be the first rate hike?
Every time I replybto one of them, their post disappears, I doubt tgey are actively blocking me, seens like it might be the only way admin get alerted and them delete post when someone replies.
It's not a permanent fix though. But if everyone does this, it might reduce them. I even logged out and checked, they were just gone.
I thought the market low was supposed to be the first rate hike, what happened?
Historical patterns worthless I guess, taken outside of economic context.