Rising Prices, More Gov Borrowing, Illusory Growth, Inadequate Cost of Living Adjustments. And So It Goes!
“The last 50 years is the first time we’ve seen such a broad upswing in the global price level across multiple countries.”
Jim Reid, Chief Credit Strategist, Deutsche Bank
“A new CNN poll finds that 74% of U.S. adults now say they are ‘very or somewhat angry’ about the way things are going in the U.S. today — that includes 88% of Republicans, 70% of independents and even 67% of Democrats. But wait, there’s more.
“Another 69% of U.S. adults now say that things are going ‘pretty or very badly’ in the country these days — that includes 91% of Republicans, 72% of independents and 49% of Democrats.”
“Prices of goods online have now risen for an unprecedented 15 consecutive months, following what was a historical period of declines, according to a new report from Adobe Digital Insights.
“Inflation is hitting categories including pet products, nonprescription drugs, apparel, furniture and flower arrangements, the report said….
“The price gains are happening during a period that normally sees prices drop, Adobe pointed out in its report. Retailers tend to use heavy promotions to clear out excess merchandise at the end of the summer and to win customer loyalty as they complete their back-to-school shopping.
“Not this year.”
“Global food prices were up 33% in August from a year earlier with vegetable oil, grains and meat on the rise, data from the United Nations Food and Agriculture Organization show. And it’s not likely to get better as extreme weather, soaring freight and fertilizer costs, shipping bottlenecks and labor shortages compound the problem. Dwindling foreign currency reserves are also hampering the ability of some nations to import food.
“Adjusted for inflation and annualized, costs are already higher now than for almost anytime in the past six decades….”
“[Any]economic growth we’re seeing isn’t really economic growth. It’s just spending funded by massive amounts of tools and devices The Fed has used.
“I don’t think the history book will say inflation was transitory.”
Jeffrey Gundlach, DoubleLine Founder
“The United States borrowed over $2.7 trillion in the first 11 months of fiscal year 2021, including $173 billion in August….
“’We’ve borrowed $247 billion per month so far this year,’ said Maya MacGuineas, president of the Committee for a Responsible Federal Budget, ‘a staggering amount that would have previously been unthinkable.’”
‘Social Security Cost of Living Allowance for 2022 to be Near 5.8%, Could Match 2009, Biggest since 1982.
“While this type of COLA will provide some relief from the price increases that have been gnawing away at fixed incomes, it will still be insufficient to compensate for the surging costs that individuals may face in housing and other major expenses, depending on their situation and location.”