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2022 inflation report thread

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  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    @taxmad said:

    @cohodk said:

    @bigjpst said:

    @cohodk said:
    1 out of 11 households in America has a $1 million net worth.

    Does this number take into account the home?

    Excluding home.

    Source? Excluding home equity that seems high.

    https://www.ramseysolutions.com/retirement/how-many-millionaires-in-us

    https://www.statista.com/statistics/617390/us-millionaire-households/

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • DrBusterDrBuster Posts: 5,409 ✭✭✭✭✭

    @Icollecteverything said:
    Soda? The definition of non-essential.

    All the bars and restaurants would beg to differ.

  • taxmadtaxmad Posts: 980 ✭✭✭✭
    edited January 24, 2022 6:05AM

    @cohodk said:

    @taxmad said:

    @cohodk said:

    @bigjpst said:

    @cohodk said:
    1 out of 11 households in America has a $1 million net worth.

    Does this number take into account the home?

    Excluding home.

    Source? Excluding home equity that seems high.

    https://www.ramseysolutions.com/retirement/how-many-millionaires-in-us

    https://www.statista.com/statistics/617390/us-millionaire-households/

    Couldn't get the Statista article to load. The Ramsey article is interesting - and it does support your 1 in 11 number/no home equity statement. It does raise a lot of questions, especially when you look at the age of those millionaires and the wage gap over the last 15 years. It would be interesting to develop a net worth by age graph

    edit to add: Will be interesting to see the results at the end of this year if the stock market continues its correction...

  • bigjpstbigjpst Posts: 3,108 ✭✭✭✭✭

    @taxmad said:

    @cohodk said:

    @taxmad said:

    @cohodk said:

    @bigjpst said:

    @cohodk said:
    1 out of 11 households in America has a $1 million net worth.

    Does this number take into account the home?

    Excluding home.

    Source? Excluding home equity that seems high.

    https://www.ramseysolutions.com/retirement/how-many-millionaires-in-us

    https://www.statista.com/statistics/617390/us-millionaire-households/

    Couldn't get the Statista article to load. The Ramsey article is interesting - and it does support your 1 in 11 number/no home equity statement. It does raise a lot of questions, especially when you look at the age of those millionaires and the wage gap over the last 15 years. It would be interesting to develop a net worth by age graph

    edit to add: Will be interesting to see the results at the end of this year if the stock market continues its correction...

    Ramsey uses home equity in the calculation so according to them, there is an even higher number of millionaires. Interesting.

  • taxmadtaxmad Posts: 980 ✭✭✭✭

    @bigjpst said:

    Ramsey uses home equity in the calculation so according to them, there is an even higher number of millionaires. Interesting.

    It is and unless you are willing to move to a cheaper house/area it really not a easily tapped source of funds. My house has damned near made me a millionaire, but if CA ever gets their shat together and their residents quit fleeing here - or a more likely scenario mortgage interest rates increase - my house will lose 30% or more. I don't want to leave the area even when I retire, so sell high/buy high is the only way I could 'cash out' the equity in my house

  • JimTylerJimTyler Posts: 3,433 ✭✭✭✭✭
    edited January 24, 2022 8:13AM

    My house would sell for more now than I ever imagined. My dog won’t let me sell. She likes being in charge but if we’re ever abducted by aliens and they want to anal probe the one in charge we’ll see how much she likes it then.

  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited January 24, 2022 8:27AM

    Everyone in Zimbabawee is a millionaire.

    The local dollar store is now the 'Buck & a Quarter' store

    For a proper reference to reality, maybe wealth should be measured in ounces of gold.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    @taxmad said:

    @cohodk said:

    @taxmad said:

    @cohodk said:

    @bigjpst said:

    @cohodk said:
    1 out of 11 households in America has a $1 million net worth.

    Does this number take into account the home?

    Excluding home.

    Source? Excluding home equity that seems high.

    https://www.ramseysolutions.com/retirement/how-many-millionaires-in-us

    https://www.statista.com/statistics/617390/us-millionaire-households/

    Couldn't get the Statista article to load. The Ramsey article is interesting - and it does support your 1 in 11 number/no home equity statement. It does raise a lot of questions, especially when you look at the age of those millionaires and the wage gap over the last 15 years. It would be interesting to develop a net worth by age graph

    edit to add: Will be interesting to see the results at the end of this year if the stock market continues its correction...

    There will be a.massive transfer of wealth from.the silent generation and boomers to gen x and millenioals.over the next 15-25 years.

    Your home wont drop much in value......tis a benefit of owning an asset during inflation.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • taxmadtaxmad Posts: 980 ✭✭✭✭

    @cohodk said:

    Your home wont drop much in value......tis a benefit of owning an asset during inflation.

    I disagree, not for the reason in your post. Once interest rates increase, home values will have to reset to match wages in the market. Treasure Valley wages cannot support $700K/2000 sq. ft homes on tiny lots - which is what the house down the street just sold for.

  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    @taxmad said:

    @cohodk said:

    Your home wont drop much in value......tis a benefit of owning an asset during inflation.

    I disagree, not for the reason in your post. Once interest rates increase, home values will have to reset to match wages in the market. Treasure Valley wages cannot support $700K/2000 sq. ft homes on tiny lots - which is what the house down the street just sold for.

    I hear ya, but i dont think that will happen. Homes values in CA are still higher than where you are and there is limited supply so there is a multiple of demand over availability.

    And a 1% rise in mortgage rate from 4% to 5% is about $300 per month extra. At 6% it costs $600 more....that just isnt enough to cause a big decline in home values.

    Wages will not stagnate or decline.

    Can that 700k house drop to 650? Surely. Will it drop back to 400k. No way.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • taxmadtaxmad Posts: 980 ✭✭✭✭

    @cohodk From your lips to god's ears! The '08 crash was painful and I don't have the years left that I did back then...

  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    @taxmad said:
    @cohodk From your lips to god's ears! The '08 crash was painful and I don't have the years left that I did back then...

    We overbuilt in the mid 2000s. Way too much inventory and folk had more debt and less assets. Much different story today

    In 2018, the aversge mortage rate was about 4.6% and there were still 6 million homes sold. Today there are only 5 million homes on the market.

    I wish there was more available as im looking to buy, but there just isnt much out there.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • blitzdudeblitzdude Posts: 5,952 ✭✭✭✭✭

    I'm done buying overpriced wooden boxes (minus a small winter condo down in the keys). Straight farmland from here on out. RGDS!

    The whole worlds off its rocker, buy Gold™.
    BOOMIN!™

  • TwoSides2aCoinTwoSides2aCoin Posts: 44,363 ✭✭✭✭✭
    edited January 25, 2022 8:02AM

    People who think they're rich in a place where we are so deep in the hole, we call it " raising the debt ceiling" are neither rich, or smart.

  • ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭

    Fed countdown ....

  • derrybderryb Posts: 36,937 ✭✭✭✭✭

    Cryptos like FEDday. :)

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • MsMorrisineMsMorrisine Posts: 33,238 ✭✭✭✭✭

    And gold had little reaction

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited January 26, 2022 11:45AM

    @ErrorsOnCoins said:
    Fed countdown ....

    rescue the poor from soaring inflation... or rescue the rich from asset-wealth-destruction?

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭

    @derryb said:
    Cryptos like FEDday. :)

    I had the buy all ready to go last night on ADA at 1.03 but my trigger finger ain't working.

    May redeem an ETF today to buy COST?

  • MsMorrisineMsMorrisine Posts: 33,238 ✭✭✭✭✭

    Looks like gold is now throwing up blood

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • derrybderryb Posts: 36,937 ✭✭✭✭✭

    @derryb said:
    Cryptos like FEDday. :)

    . . . and now they don't.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • ctf_error_coinsctf_error_coins Posts: 15,433 ✭✭✭✭✭
    edited January 26, 2022 1:17PM

    @derryb said:

    @derryb said:
    Cryptos like FEDday. :)

    . . . and now they don't.

    I want them to not like them a little more ;)

  • blitzdudeblitzdude Posts: 5,952 ✭✭✭✭✭

    @TwoSides2aCoin said:
    People who think they're rich in a place where we are so deep in the hole, we call it " raising the debt ceiling" are neither rich, or smart.

    Debt ceiling....Did someone say debt ceiling?

    Holy Moley, almost $30T. Oh well it's just an imaginary fiat number anyways. lol

    The whole worlds off its rocker, buy Gold™.
    BOOMIN!™

  • MsMorrisineMsMorrisine Posts: 33,238 ✭✭✭✭✭

    you guys write your checks to the treasury for $250,000 this tax season

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • TwoSides2aCoinTwoSides2aCoin Posts: 44,363 ✭✭✭✭✭

    Notice how the individual taxpayers' liability (in blitzdude's chart) is about equal to the annual wages of senators and congressmen ? A freak coincidence.

  • RobMRobM Posts: 558 ✭✭✭

    @MsMorrisine said:
    you guys write your checks to the treasury for $250,000 this tax season

    Not yet, But the "debt per taxpayer" figure is a bit deceiving when more than half the filers (61% in 2020) pay zero federal income tax (though many do pay some payroll taxes). So if you routinely owe income taxes, your share may be well over $250K.

  • RobMRobM Posts: 558 ✭✭✭

    @TwoSides2aCoin said:
    Notice how the individual taxpayers' liability (in blitzdude's chart) is about equal to the annual wages of senators and congressmen ? A freak coincidence.

    Coincidental, since US Senate and Congress salaries have remained the same over the past 14 years at $174K. During that timeframe though, the debt has increased nearly 2.5X.

  • jmski52jmski52 Posts: 22,897 ✭✭✭✭✭

    it's a symbolic paycheck. The real money is in the corruption and insider trading.

    True. But consider that the real money is quite a bit less than $29.8 trillion. We are so screwed.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • HigashiyamaHigashiyama Posts: 2,192 ✭✭✭✭✭

    We could trade our gold for the debt at roughly $100,000 per ounce. :o

    Higashiyama
  • jmski52jmski52 Posts: 22,897 ✭✭✭✭✭

    We could trade our gold for the debt at roughly $100,000 per ounce. :open_mouth:

    I'd be willing to risk selling a few ounces at that price. B)

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    @TwoSides2aCoin said:
    Notice how the individual taxpayers' liability (in blitzdude's chart) is about equal to the annual wages of senators and congressmen ? A freak coincidence.

    It is also about equal to the average 401k for someone over the age of 65.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • Just paid $3.399/gallon for a special delivery of fuel oil. Not cheap for recent prices but I know about 10 years ago it was $4.00+ Just glad to have it with tomorrow High temperature around 10 and 50 MPH winds.

    Successful BST deals with mustangt and jesbroken. Now EVERYTHING is for sale.

  • shorecollshorecoll Posts: 5,445 ✭✭✭✭✭

    Remember in those numbers that the $9T in debt at the Fed is NOT included. That's one area of uncertainty...the Fed now owns most of the mortgages in the US (excluding those held by banks in their own accounts) and no one knows the effect if the Fed stops buying those. Expectation is a drop, but by how much? BTW that ownership is directly due to 2008 emergency measures that they've never been allowed to stop.

    ANA-LM, NBS, EAC
  • derrybderryb Posts: 36,937 ✭✭✭✭✭

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • RobMRobM Posts: 558 ✭✭✭

    My personal umbrella insurance bill... annual premium up 22% over the previous year. One of the more egregious examples of price increases I've personally experienced recently. Not to worry, this type of insurance doesn't contribute to CPI calculations. Balances out the cheap tenderloin steaks I've been buying. Thinking of just not renewing the policy and self-insuring with PMs.

  • DrBusterDrBuster Posts: 5,409 ✭✭✭✭✭

    Our county water bill went up a good chunk for 2022, like ~35-40% if I'm reading our rate numbers right.

  • MsMorrisineMsMorrisine Posts: 33,238 ✭✭✭✭✭

    fed holdings of Treasuries is included in us debt clock

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • cohodkcohodk Posts: 19,184 ✭✭✭✭✭

    Furniture up 13.8%. Who wishes they had lawnchairs now??!! Haha

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • HigashiyamaHigashiyama Posts: 2,192 ✭✭✭✭✭

    I guess a lawn chair is an armchair. We could all use at least one of them.

    Higashiyama
  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited February 1, 2022 12:43PM

    he looks "freshly" homeless; his ex wife got everything else.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • blitzdudeblitzdude Posts: 5,952 ✭✭✭✭✭

    @MsMorrisine said:
    fed holdings of Treasuries is included in us debt clock

    Happy New Year!

    The whole worlds off its rocker, buy Gold™.
    BOOMIN!™

  • derrybderryb Posts: 36,937 ✭✭✭✭✭

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • MsMorrisineMsMorrisine Posts: 33,238 ✭✭✭✭✭

    USA - leading the way in national debt

    Current maintainer of Stone's Master List of Favorite Websites // My BST transactions
  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited February 3, 2022 2:49AM

    one could start the inflation blame game with the major shipping companies who apparently are not suffering from supply chain issues:

    Denmark-based carrier Maersk expects to report $24 billion in 2021 earnings before taxes and depreciation, triple its 2020 haul. Shanghai-based Cosco Shipping reported $14 billion in annual profits, nine times its 2020 earnings. Germany’s Hapag-Lloyd AG said Tuesday that its pre-tax income more than quadrupled to $12.8 billion last year.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited February 3, 2022 2:53AM

    what shortages? lol

    riot when Golden Corral runs out of steak:

    Brawl at the Buffet.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • blitzdudeblitzdude Posts: 5,952 ✭✭✭✭✭

    @derryb said:
    what shortages? lol

    riot when Golden Corral runs out of steak:

    Brawl at the Buffet.

    Only in 'Merica, trash getting fatter and dumber by the day. Darwin's natural selection will no doubt win out.

    The whole worlds off its rocker, buy Gold™.
    BOOMIN!™

  • derrybderryb Posts: 36,937 ✭✭✭✭✭
    edited February 5, 2022 4:10PM

    Rate increases and QE reductions will prove to be transitory. Wall St. will not stand for the fallout and the FED will backtrack its BS.

    The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong

  • meluaufeetmeluaufeet Posts: 764 ✭✭✭

    @derryb I think you meant to say Rate Increases and QE reductions, to which I agree.

This discussion has been closed.