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Business, Economics & Tax Policy 7: Workers of the world unite!
- Thread starter Kepler
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ScoobyDoo
NPC
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
500,000 is off by a factor of 6.
500,000 is off by a factor of 6.
Kepler
Si certus es dubita
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
I'm sending him my thoughts and prayers.
I'm sending him my thoughts and prayers.
rufus
rock and roller
ScoobyDoo
NPC
dxmnkd316
Lucia Apologist
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Are you just responding to the Harley and nail company stories or was there another report out that I'm not seeing?
Are you just responding to the Harley and nail company stories or was there another report out that I'm not seeing?
St. Clown
Liberal Rebel Scum, apparently
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
All of these various manufacturing companies keep reported that they are seeing increased prices for their input costs - the raw materials, or pieces used to make their end product. That's what's measured in the PPI - Producer Pricing Index. They then say that they need to then charge more for their end product that gets sold to Joe Blow at the Home Depot - the CPI effect.
These latest two reports are just adding to the long line of exactly what anybody who's had more than just an Econ 101 course could tell you - tariffs create inflation. They're usually put in place to save some specific count of jobs, most often under 600,000 net, but then they have deleterious impact on everybody else. The government is robbing Peter to pay Paul, and it's not small amount of money.
Just watch what happens to the prices for automobiles, recreational vehicles, lawn and garden equipment, new houses, supplies for fixing houses, HVAC equipment, and so on, and so on. We all get a very large one-time dose of inflation, producers have their profit margins thinned, and a few people stayed employed, but never nearly the count of people that were sold to the government by the lobbyists because of the negative pressures this will put on rGDP.
All of these various manufacturing companies keep reported that they are seeing increased prices for their input costs - the raw materials, or pieces used to make their end product. That's what's measured in the PPI - Producer Pricing Index. They then say that they need to then charge more for their end product that gets sold to Joe Blow at the Home Depot - the CPI effect.
These latest two reports are just adding to the long line of exactly what anybody who's had more than just an Econ 101 course could tell you - tariffs create inflation. They're usually put in place to save some specific count of jobs, most often under 600,000 net, but then they have deleterious impact on everybody else. The government is robbing Peter to pay Paul, and it's not small amount of money.
Just watch what happens to the prices for automobiles, recreational vehicles, lawn and garden equipment, new houses, supplies for fixing houses, HVAC equipment, and so on, and so on. We all get a very large one-time dose of inflation, producers have their profit margins thinned, and a few people stayed employed, but never nearly the count of people that were sold to the government by the lobbyists because of the negative pressures this will put on rGDP.
Kepler
Si certus es dubita
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
What in the f-ck happened in 1987?!
<img src="http://www.macroption.com/images/vix/vxo-chart-1986-2013.png" height="300" />
What in the f-ck happened in 1987?!
<img src="http://www.macroption.com/images/vix/vxo-chart-1986-2013.png" height="300" />
unofan
Well-known member
That was Black Monday, right? When the DJIA fell by what, 25% in a single day?
Kepler
Si certus es dubita
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Looks that way. October 19, 1987.
Looks that way. October 19, 1987.
rufus
rock and roller
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Not even taking into consideration the retaliatory tariffs, but just anything that has steel or aluminum in its makeup.
Not even taking into consideration the retaliatory tariffs, but just anything that has steel or aluminum in its makeup.
St. Clown
Liberal Rebel Scum, apparently
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Right. Those retaliatory tariffs are going to do some different things. Exports will suffer, which means this year's crop yields will be in excess of demand. Prices will drop on many ag-commodities, which might translate into a slight price drop at the grocery stores for a few products until the farmers are able to adjust to the new market conditions. In the meantime, those Trumped-up farmers better hope they have enough capital to make it through this year, or they're going to either need to take out some new loans or sell some property. Either way, they're not going to be living high on the hog for a number of years - until we have a change in POTUS, perhaps even party.
The problem for CPI calcs is that the retaliatory tariffs against the US are in products that we exempt from CPI calculations. So you and I might see a lot of net offsets in our overall consumption needs, but the CPI will not look good. Oddly enough, that could be a good thing for SSA and SSI beneficiaries next year with their COLA adjustments.
Right. Those retaliatory tariffs are going to do some different things. Exports will suffer, which means this year's crop yields will be in excess of demand. Prices will drop on many ag-commodities, which might translate into a slight price drop at the grocery stores for a few products until the farmers are able to adjust to the new market conditions. In the meantime, those Trumped-up farmers better hope they have enough capital to make it through this year, or they're going to either need to take out some new loans or sell some property. Either way, they're not going to be living high on the hog for a number of years - until we have a change in POTUS, perhaps even party.
The problem for CPI calcs is that the retaliatory tariffs against the US are in products that we exempt from CPI calculations. So you and I might see a lot of net offsets in our overall consumption needs, but the CPI will not look good. Oddly enough, that could be a good thing for SSA and SSI beneficiaries next year with their COLA adjustments.
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
The yield curve has Wall Street's attention.
Every recession of the past 60 years has been preceded by an inverted yield curve, according to research from the San Francisco Fed. Curve inversions have “correctly signaled all nine recessions since 1955 and had only one false positive, in the mid-1960s, when an inversion was followed by an economic slowdown but not an official recession,” the bank’s researchers wrote in March.
https://www.nytimes.com/2018/06/25/business/what-is-yield-curve-recession-prediction.html
Tariffs, threatened cuts to government, and factors like the above may be enough to overcome juicing the economy. While the world might have blinked on tariffs in '90 - its quite unlikely in '18 and with with a bully like Trump.
The yield curve has Wall Street's attention.
Every recession of the past 60 years has been preceded by an inverted yield curve, according to research from the San Francisco Fed. Curve inversions have “correctly signaled all nine recessions since 1955 and had only one false positive, in the mid-1960s, when an inversion was followed by an economic slowdown but not an official recession,” the bank’s researchers wrote in March.
https://www.nytimes.com/2018/06/25/business/what-is-yield-curve-recession-prediction.html
Tariffs, threatened cuts to government, and factors like the above may be enough to overcome juicing the economy. While the world might have blinked on tariffs in '90 - its quite unlikely in '18 and with with a bully like Trump.
rufus
rock and roller
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Going unsaid in all of this is since Trumpy's announcement of tariffs on China, China has signed something like an $800 million contract with Russia for soybeans. A huge sum of money flowing in to Russian coffers that aren't exactly overflowing these days.
Trumpy couldn't be helping Russia become more sound economically if he tried.
Going unsaid in all of this is since Trumpy's announcement of tariffs on China, China has signed something like an $800 million contract with Russia for soybeans. A huge sum of money flowing in to Russian coffers that aren't exactly overflowing these days.
Trumpy couldn't be helping Russia become more sound economically if he tried.
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Good call. And Trumps been warming up to Putin for some time. It appears Russia's manipulation of the US election will be one of the best investments that country has ever made.
Going unsaid in all of this is since Trumpy's announcement of tariffs on China, China has signed something like an $800 million contract with Russia for soybeans. A huge sum of money flowing in to Russian coffers that aren't exactly overflowing these days.
Trumpy couldn't be helping Russia become more sound economically if he tried.
Good call. And Trumps been warming up to Putin for some time. It appears Russia's manipulation of the US election will be one of the best investments that country has ever made.
Kepler
Si certus es dubita
Re: Business, Economics & Tax Policy 7: Workers of the world unite!
Dump is their Trojan horse's as-s.
Dump is their Trojan horse's as-s.
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