Re: Economic report

On Fri, 31 Jul 2026 12:09:47 -0400, Wilson <[email protected]>
wrote:

>On 7/31/2026 10:59 AM, Noah Sombrero wrote:
>> On Fri, 31 Jul 2026 10:28:40 -0400, Wilson <[email protected]>
>> wrote:
>> 
>>> On 7/22/2026 9:45 AM, Wilson wrote:
>>>> "Inflation is caused by more money chasing the same amount of goods and
>>>> services in the economy. The correlation between the money supply (M2)
>>>> and CPI [Consumer Price Index] has historically run with a 12 to 18-
>>>> month lag.
>>>>
>>>> M2 is up 5%+ over this past year, and even though June’s CPI and PPI
>>>> [Producer Price Index] numbers were both cooler, that would
>>>> theoretically point to some revival in CPI over the coming year. Now,
>>>> there isn’t anything precise in tea leaves like this, but keep it in
>>>> mind when framing the debate within the Fed as to the timing and
>>>> direction of the next change in monetary policy. Also keep in mind that
>>>> we are at full employment, and that the re-escalation in the Middle East
>>>> and the move higher in oil prices puts additional pressure on rates to
>>>> rise too."
>>>>
>>>> https://postimg.cc/YGHjrmtJ
>>>>
>>>> - Brian Szytel, The Bahnsen Group
>>>
>>> "You described inflation as too much money chasing too few goods or
>>> services, causing a rise in prices. Isn’t there more to it, though -
>>> like tariffs playing a role, or oil supply shocks with the war? How do
>>> those factor in, or is it all baked into that description?"
>>> ~ R.S.
>>>
>>> "Most of what you’re describing are relative price changes, not
>>> inflation in the monetary sense. A tariff or a shipping disruption
>>> raises the price of a specific good, but with the money supply fixed, a
>>> dollar spent more there is a dollar spent less somewhere else — one
>>> price rises, another gives way.
>>>
>>> What sets the overall price level, which is what inflation actually
>>> measures, is the quantity of money and the velocity at which it moves.
>>> Tariffs and oil shocks determine the composition of prices; money
>>> determines the trend, in other words.
>>>
>>> That doesn’t make them irrelevant. A supply shock becomes true inflation
>>> if it feeds wages and expectations, and several of these factors push on
>>> velocity, which is anything but constant. Pricing power only sticks when
>>> monetary conditions let demand absorb it. So the shorthand definition is
>>> meant to encompass all of it — demand-pull, cost-push, and money supply
>>> alike."
>>>
>>> ~ Brian T. Szytel
>> 
>> In other words inflation is beyond your understanding, so stop being
>> upset about it.  Certainly it has nothing to do with things like
>> greed.  Oh, no, certainly not.  Don't look that way, look this way.
>
>It's very easy to understand. At least as long as you don't let your 
>ideology get in the way.

Or easy to imagine that you understand.

You are the one with restrictive ideology, remember?
-- 
Noah Sombrero mustachioed villain
Don't get political with me young man
or I'll tie you to a railroad track and
<<<talk>>> to <<<YOOooooo>>>
Who dares to talk to El Sombrero?
dares: Ned
does not dare: Julian  shrinks in horror and warns others away