Fed rate increase = lower hifi prices?


Will the recent rate hike meant to slow down the economy result in lower hifi prices?  Seems everything shot up during Covid. Will we now see some relief?

128x128bigtex22

Similarly 3.4% sounds strong, but in a 6-7% inflation scenario, that is stagflation.

Yeah except 7% inflation is a temporary situation caused by covid. And you’re confusing terms. 3.4% nominal growth IS strong, its real GDP growth that’s weak, but that’s a different concept entirely and doesn’t change the fact that nominal GDP growth is strong. In a few months the CPI comps to last year alone are gonna dramatically reduce inflation, and as supply channels gradually open inflation will fall even further and we’ll still have an economy growing at above 3%. And BTW, this is NOT stagflation — it’s economic growth accompanied by temporarily high inflation. Stagflation is persistent high inflation with high unemployment and stagnant demand , and that is not even close to what we have here. Just sayin’.

“J. P. Morgan tells the story of how he would get his shoes shined every Wednesday at the same shop around the corner from his office. One day the shoe shine attendant asked him if he and his friends could buy some stock through Morgan’s brokerage. The three friends had about $40—a lot of money in 1929. Morgan politely refused, hurried back to his office, and ordered that his company was not to have a single share of stock on its books by the end of the day. Morgan simply asked, “If the shoe shine boys are buying stocks, who else is left?” Of course, the 1929 stock market crash was only a few days away, and Morgan looked like a genius. He was not a genius; he noted that the order flow was likely running out on the buy side. It wasn’t his army of analysts that showed him that. It was a public investor.”

 

Two other great quotes: “Remember, my son, that any man who is a bear on the future of this country will go broke.” and my favorite; “Nothing so undermines your financial judgement as the sight of your neighbor getting rich.”

 

 

 

 

@ghasley @soix

In light of all the things I have mentioned, you have addressed NONE of them, instead putting forth theoretical rhetoric. We live in a real world. in this real world, the gas has either doubled in price or it has not. Hamburger has risen 35-40% or it has not. Coffee, 40% or not. Klaus Schwab and WEF has an agenda are either real or not. Saudi Arabia is either buying Russian oil with Rubles or not. China has either sworn to overtake us or not. Communists have sworn to bury us or not. And these things effect economic outcomes. Yet all I see from you is bluster & arrogance. No answers to my questions. just theory. Yet, when theory collides with reality , REALITY WINS

There is a heirarchy of lies that goes

Lies

Damned Lies

Statistics.

You can make them say whatever you want. And I know you are willing to do so.That said, I also have learned to not waste my time on leftists who think themselves superior. They can never win the debate on the merits of their ideas nor can they teach anything because of their arrogance. Nor will they answer any of the tough truths of life. I’d rather not trade insults and instead have a rational conversation.but I guess its not possible as long as I don’t line up with the left’s ideas. You just have to agree with them or they go nuts and cancel you if they can

Here’s what the GAO says. I’m sure you will find justification for your position no matter who says you are wrong because in your mind that cannot be.

 

GAO warns of ‘unsustainable fiscal future,’ debt reaching over 200% GDP

“The federal government faces an unsustainable fiscal future. If policies don’t change, debt will continue to grow faster than the economy,” said the Government Accountability Office. Hint: Imagine things twice as bad as today.

Over 54 pages, the GAO’s annual federal audit calls for major pullbacks to fix the fiscal health of the government and economy.

But if the predictions included in the report are right, a bigger crash is coming due to nonstop growing debt, now equal to America’s gross domestic product. By 2050, and absent a major (and an unlikely) policy shift, the national debt will more than double to 217% of GDP, said the GAO.

“The federal government faces an unsustainable fiscal future. At the end of fiscal year...

GAO warns of ‘unsustainable fiscal future,’ debt reaching over 200% GDP

And here is the actual GAO report

GAO Report to Congress