AGAIN....underestimated,unintended consequences

www.cnbc.com/2021/07/13/consumer-price-i...ercent-estimate.html

4.5 percent BIGGEST increase since 1991......YEP, don't worry,we have your back.

President Biden's solution? Print more money! Keep interest rates low. Reagan's solution to high stagnant inflation? Raise interest rates and tighten the supply of money.

AHEM, printing more money has ALWAYS been the solution...thru many POTUS proclamation/Feds.

homeagain wrote: AHEM, printing more money has ALWAYS been the solution...thru many POTUS proclamation/Feds.

It is sometimes a good idea to print money, prime the pump so to speak when an economy is in the doldrums. Why I don't support requiring a balanced budget. Helped get the US out of the Great Recession. But when inflation is approaching 6%, it is not a good idea.

Unfortunately, there was a GLOBAL pandemic that created a perfect storm of converging factors...the
GLOBAL economy has not recovered and the new norm is just now being felt...."Just in time" supply chain
created a HUGE ugly problem....talked to an electrician,(house going up on parcel sorta next to us,they
can not get toggle switches for the electric panels,back ordered,unclear when available. THAT creates
a stoppage for the finally inspections and C.O. (certificate of occupancy). THE HOUSE IS SITTING THERE
at A STAND STILL. Those scenarios are many and common.

The real question is if the increased demand will just be a temporary surge in prices. Same thing happens after wars. Lots of pent up demand and increased savings spurred inflation. To me it looks like the US has weathered the global pandemic better than the 3rd world who are still losing people to the disease and are way behind in vaccinations.

homeagain wrote: Unfortunately, there was a GLOBAL pandemic that created a perfect storm of converging factors...the
GLOBAL economy has not recovered and the new norm is just now being felt...."Just in time" supply chain
created a HUGE ugly problem....talked to an electrician,(house going up on parcel sorta next to us,they
can not get toggle switches for the electric panels,back ordered,unclear when available. THAT creates
a stoppage for the finally inspections and C.O. (certificate of occupancy). THE HOUSE IS SITTING THERE
at A STAND STILL. Those scenarios are many and common.

www.reuters.com/business/global-supply-c...s-strike-2021-07-23/

AND HERE WE R AGAIN......just a gentle reminder,I stated the end of Q3 into the end of year...FUBARED

www.reuters.com/business/finance/fed-now...s-falter-2021-07-26/

""Things could play out in a way they didn't expect".....WHAT AN UNDERSTATEMENT. (The writing was on
the wall,they just didn't want to read it.)

www.politico.com/news/2021/07/26/federal...conomy-bubble-500683

conundrum....continue QE OR cut it off (gradually)....OH MY, watch what happens...

Housing prices in Denver are up 16%. Even higher elsewhere like Phoenix and Seattle are close to 25% in one year! Time for Biden to slow the spending? Instead he wants to allow four more months for renters to avoid paying.