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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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54293152 No.54293152 [Reply] [Original]

Our target is 2% inflation

>> No.54293374

>>54293152
actually its from 1% to 3%

>> No.54293706

>>54293152
YES KING

>> No.54293758

>pivots
>raise rates a paltry 25bps
>doesnt slam the government for not cutting spending
What a tool. Man refuses to risk his job for doing the right thing. Useless idiot.

>> No.54293794

>>54293152
eventually they'll have to come to grits with reality and come up with some bs narrative that in todays economy actually 5% (15% unofficially - taking the CPI sunglasses off) is the new optimal target for inflation,

>> No.54293847
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54293847

>>54293152
then why is he printing ?

>> No.54293878

>>54293152
>bi-annually

>> No.54293901

Why not 0%?

>> No.54293964

>>54293758
His job is to make npcs believe all this theatre is real

>> No.54293967

>>54293847
still a decline since early 2022

>> No.54294125

>>54293152
This is beyond retarded. We’ve never had 2% inflation. That is a doubling in price every 50 years. 50 years ago basic goods have like 10x since

>> No.54294144

Can someone explain why deflation is bad? I know it actually isn't but please explain in Jewish/normie terms why is negative inflation bad

>> No.54294171

>>54293152
Congratulations on missing the target for 15 months in a row pussy

>> No.54294342

>>54293152
>our target is 10% unemployment
Ftfy

>> No.54294363

>>54294144
Rich people become poorer while poor people become richer.

>> No.54294373

>>54294144
Their assists lose value and wages have more purchasing power which makes Mike’s seethe

>> No.54294381

>our target is to make you poor
whoever thinks inflation can be fixed or "under control" while using the current fiat monetary system is retarded

>> No.54294392

>>54294373
kikes*

>> No.54294405

>>54294144
it's only bad for equities and leverage. The wealthy can't get margin to gamble, equities fall. so they stop profiting. If the wealthy can't profit they'll dp everything o avoid it.

>> No.54294434

>>54294125
Inflation compounds dummy

>> No.54294454

>>54294144
The theory is that people will stop buying things because it will become cheaper in the future. Clearly this is bullshit and doesn't matter.
If anything, deflation is associated with a shrinking economy and thus people think both are bad.

>> No.54294494

>>54294434
Even with compounding daily 2% for 50 years is only a 170% increase in prices, still never ever been this low ever. Shit from 1970s has 10x (1000% increase) or more

>> No.54294496

>>54294144
Deflation is good. Some of the most prosperous periods of American history (industrial revolution) were deflationary.
It literally just means stuff is getting cheaper relative to money. I hate the bankers

>> No.54294528 [DELETED] 

>>54294494
>>54294496
>>54294144
>>54294125
Antisemitism belongs on /pol/, go back now. Putin lost, Trump lost, chuds lost.

>> No.54294694

>>54294528
Chuds in the end are the last real humans. And in 3-4 generations, after people had hard lives and raise their kids differently again, hopefully, there will be more chuds.
T. Not a Chud

>> No.54294753
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54294753

>>54294373
>>54294363
How? Isnt everything worth more when deflation is happening? Only the government would be hurt in this scenario since they cant just make debt disappear into thin hair at the expanse of the average joe
>>54294454
>>54294496
I did some googling and apparently deflation is bad because it makes debt go up for both investors and the government (??? doesnt that happen anyway???) and that may cause a recession (arent we headed that way anyway???)
anyways its bullshit, man

>> No.54295976 [DELETED] 
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54295976

>>54294528

>> No.54296661

>>54294454
>The theory is that people will stop buying things because it will become cheaper in the future. Clearly this is bullshit and doesn't matter.
It makes sense though?

>> No.54296990

>>54294363
wait, i am technically poor but i can put some money into sora and keep waiting to earn more money, this would screw me? i mean, i want to stop being poor but i also don't want to screw my only way to escape this

>> No.54297128
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54297128

>>54294753
The government would have to dramatically scale down in size or ramp up taxes to cover it's expenses. Both of those are politically impossible. They can just pay for it with the hidden tax of inflation though.

>> No.54297140

>>54294125
stop noticing things goy
2%

>> No.54297149

>>54293152
And they'll hit it the first week of June. I don't see what the big deal is.

>> No.54297172

>>54294363
This is exactly why they won't allow a repeat of the great depression. It made rich people more equal to poors.

>> No.54297428

>>54297149
would take a lot of boarded up storefronts for that to be the case

>> No.54297484

>>54294363
>>54297172
kek wat? who the fuck thinks "they" dont want everyone poor? come on.

>> No.54297490

Is Powell based

>> No.54297629
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54297629

>>54293152
>month over month

>> No.54297914

>>54293847
another $100 bil Brrrrr

>> No.54297957
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54297957

>>54297629

>> No.54297998

>>54296661
Do people never purchase TVs or computer parts because they get cheaper? The whole theory is fake and gay, just like you.

>> No.54299355
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54299355

The Federal Reserve is some of the most Jewish shit in the history of mankind, which means that Americans worship and serve it, and are proud of doing so.

>> No.54299384

>>54294753
Inflation is great if you have a lot of assets (the elite). They love inflation. However, they have to control it to some extent so the plebs don't revolt. They will never allow deflation to occur as it decreases their wealth.

>> No.54299469

But there's deflation in Japan? For decades? And people still buy things.

>> No.54299499
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54299499

>> No.54299540
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54299540

>>54293152
if npcs actually understood how inflation is making the working class more poor with every passing second and decreasing the value of their labor they might actually burn it all down. unfortunately they'll never wake up

>> No.54299568

>>54294125
>That is a doubling in price every 50 years.

Retard_alert.jpg

>> No.54299592

>>54293847
Pic makes me rage
>>54293967
Bet on it trending upwards. JPow is a faggot

>> No.54299608

>>54296661
If you want something you buy it now. Normies don't wait to consume just because it costs 2% less in 6 months.

>> No.54299931

>>54294528
>Putin lost
??????????????????

>> No.54299992

>>54299540
Npcs never did anything. It was either autists or psychos riling them up

>> No.54300099
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54300099

>>54294125
>We’ve never had 2% inflation. That is a doubling in price every 50 years.
checks out

>> No.54300701

>>54293847
He printed to back deposits for failed banks. Fdic hadn’t planned to gaurentee depositors above the 250 deposit line. Powell Printed to shore up the difference. Svb had about 2-300 billion in assets, silvergate was smaller. They printed to cover all the deposits.

>> No.54300719

>>54294144
People will save their dollars in their mattresses instead of spending or investing them, or loaning their money to banks.

>> No.54300732

>>54293374
Close, it’s from 0% to 4%. They may target higher since it was too low for too long.

>> No.54300759

>>54293374
It's actually between -3% and 7% so we're in the accepted range

>> No.54300778

>>54300719
And since we have 0% reserve requirement banking, we don’t actually need savings to lend out money for investments. The Federal Reserve can just make the money and give it out. The healthy strong banking sector and stock market are a testimony to this.

>> No.54300869

>>54294144
If a bank ir enterprise or even you own debt and deflation kicks in, suddenly your debt increases since the money you own becomes more valuable.

That means more people default on their debts meaning banks have a higher chance of getting illiquid meaning more bank runs. More bank runs mean less people have money and less people having money means they buy less, which means companies need to kick people just to keep a float, which means even more people not buying shit (because they are unemployed), which means even mire debt default and so on.

>> No.54300895

>>54300869
Almost as if bad choices have consequences. Bad bad need go bye bye, amirite? Spend more, take on more debt, save nothing. Surely, nothing bad will come from it.

>> No.54300982

>>54300895
Problem as usual is with degenerate gamblers. If most loans and credits end up in speculative assets like stocks with margin calls, which tends to be the case during bullruns, the moment the market goes down suddenly people get rekt because they cant pay the margins. They lose all the money they had but the debt is still there. Then the bankman comes coming for his pay, but you have no money so they liquidate all your shit.

The money contraction due to all that fake credit money is gone and suddenly prices fall. Rekt people from the first margin call fiasco are not buying shit, meaning enterprises must kick retards so they can keep up and the cycle just reinforces

>> No.54301239

>>54294144
unemployment goes from 5% to 35%

>> No.54301448

>>54293152
>hikes by 0.0000001%
We'll get there - anyday now!

>> No.54301639

>>54293152
The only thing special about 2% is that's the level where they determined the average normie wouldn't notice

>> No.54301835

>>54293847
well, he didn't print to cover failed bank shareholders, did he?

>> No.54301872

>>54294373
ITS DA IRIIIIIIIIISH

>> No.54301952

>>54294125
Imagine you eat 100 cookie daily to survive. Let's say your tapeworm (inflation) requires 10% more cookie, but tapeworm gets stronger
First day you now need 110 cookie to survive. But damn tape worm very hungry now
Your old limit was 110, but the next day requires 121 cookie. Woah tapeworm just stole another cookie from you
1st day yo

>> No.54302558

>>54293758
Reducing inflation expectations is half the job of reducing inflation
He can't slam fiscal policy without wrecking public expectations for lowered inflation