Warren Buffet: We are seeing substantial inflation

[rootcon]

Buffett called out much higher steel costs impacting Berkshire's housing and furniture businesses. "People have money in their pocket, and they pay higher prices... it's almost a buying frenzy," Buffett said, noting that the economy is "red hot."

"We are seeing substantial inflation," Buffett said at the Berkshire Hathaway annual shareholder meeting broadcast exclusively by Yahoo Finance. "We are raising prices. People are raising prices to us, and it's being accepted."

The world's biggest companies are taking action, just like Buffett at Berkshire. Proctor & Gamble said recently it would begin to hike prices on baby care, feminine care and adult incontinence products in the United States. Price increases will range from mid- to high-single digit percentages. The hikes will go into effect in mid-September. Whirlpool CFO Jim Peters recently told Yahoo Finance Live the appliance maker just jacked up prices by 5% to 12% to counteract rising steel costs. Kleenex maker Kimberly-Clark said it will increase prices in the U.S. and Canada on the majority of its consumer products due to "significant" commodity cost inflation. The percentage increases will range from mid- to high-single digits and go into effect in June.

https://finance.yahoo.com/news/warre...220539307.html

[Elias373]

What do you expect when we have a cognitively deficient President

[rootcon]

What do you expect when we have a cognitively deficient President

I dislike Biden as much as the next guy but I think Trump owns some of this. Heck even Rush Limbaugh said last year the country needed an "infusion" (stimulus) and that we could do a "post mortem" later (his words).

[SillieBazzillie]

It's almost like if demand goes up prices rise regardless of who the president is. Trump's inability to ever hit even 4% GDP in even a single quarter during his "normal" years shows just how anemic demand was during his term.

[Polaris]

It's almost like if demand goes up prices rise regardless of who the president is. Trump's inability to ever hit even 4% GDP in even a single quarter during his "normal" years shows just how anemic demand was during his term.

#Biden'sEconomy

[SillieBazzillie]

#Biden'sEconomy

For sure Biden's economy. Gonna help the dems bigly in '22 when unemployment is below 5% and we see 6%+ GDP in '21.

Of course the dems could phuk it up with all their stupid woke bullchit....

[rootcon]

It's almost like if demand goes up prices rise regardless of who the president is. Trump's inability to ever hit even 4% GDP in even a single quarter during his "normal" years shows just how anemic demand was during his term.

The latest demand increase was caused by the $1400 stimulus. The demand spikes last year were for the same reason. Liberal policies are to blame, regardless of who the president is. Free markets work unless govts intervene. Giving people money and taking out loans (govt is in deficit) to do it causes a rapid increase in the money supply not coupled with increased productivity. So supply is garbled up. This is all predicted by basic economics.

[ParsleyTea]

Inflation has taken off. The government stimulus might have been to much. i was just reading this morning that here of late in the past year:

housing prices are up 20.5%.
Use Car prices are up 33%
Food prices are up 24%
Gas prices are up 16%

As many are pointing out, more government stimulus is more likely to cause Americans pain due to inflation.

"Biden's big spending plans have never been less appropriate than they are now"

https://www.washingtonexaminer.com/o...n-they-are-now

[SillieBazzillie]

The latest demand increase was caused by the $1400 stimulus. The demand spikes last year were for the same reason. Liberal policies are to blame, regardless of who the president is. Free markets work unless govts intervene. Giving people money and taking out loans (govt is in deficit) to do it causes a rapid increase in the money supply not coupled with increased productivity. So supply is garbled up. This is all predicted by basic economics.

True that inflation has been caused by stimulus checks and mortgage and rent forbearance, but the economy is also heating up as the country opens up and that will bring inflation as well.

[chaunce54]

This has been happening for months and if you weren't expecting it, then you should probably retake economics 101...

[leafs43]

Steel, among other commodities. are up 60% since December. Forecasts show its not going away either in the short term.

[gachase21]

Many comments I want to make about this, but have limited time. Especially about the more lasting wage inflation the past 8 weeks- that seems to be progressing exponentially every week without a stop. That will stay.

Much of this is exacerbated by the extended unemployment from the stimulus bill- on top of stimulus and re-open surge.


Once the new monthly Eitc payments start in July it will get worse.

Some of these commodity and supply chain disruption items could cool down once the 1st rush back to inventories is completed as stuff gets re-opened.





As I don’t have time for now though, I’ll just leave this here....


https://forum.bodybuilding.com/showt...9608793&page=1

[DeshaunWatson]

For sure Biden's economy. Gonna help the dems bigly in '22 when unemployment is below 5% and we see 6%+ GDP in '21.

Of course the dems could phuk it up with all their stupid woke bullchit....

And when we see $7 gallon of milk

[BLOATMOGGER]

I agree we are seeing more inflation.

One question to ask yourself...why is inflation bad? The MSM repeatedly emphasizes inflation is bad bad bad.

Ask yourself who has the most to lose from inflation...Is it the ruling classes with enormous amounts of wealth?

Or is it the middle classes who are still earning income with their valuable skills, and who likely have a fixed-rate mortgage, student loan debt, and consumer debt?

Once you ponder this question you will start to overcome your programming.

[Chowboy]

Lumber and building matl's have gone up significantly, too. A sheet of OSB 18 months ago cost around $10. Now it's over $30.


The poster above is correct. Inflation started before Dementia Joe, although it will get worse under his policies.

[Phil9]

What do you expect when we have a cognitively deficient President

“Buffett said, noting that the economy is "red hot."




A red hot economy?

[gachase21]

Scary note

Powell's high-stakes bet: More jobs but only mild inflation

https://www.foxbusiness.com/economy/...mild-inflation









In other news....

and we see 6%+ GDP in '21.
..

6% will be weak


Prior thread discussion....

The title , and then minds cliffs of op

Goldman Sachs believe Biden's bill will herald greatest GDP bump in nearly 100 years

——

By the numbers: A growth of 8% this year would put U.S. GDP at around $22.6 trillion, marking a full recovery after the economy shrank 4.1% in 2020.

U.S. GDP hasn't grown 8% in a year since 1951, when it totaled $356 billion. Of note: Goldman's metric tracks fourth quarter over fourth quarter growth, rather than year over year.

My response

I’m tired tonight so maybe sillie can come correct my maths...



So all these economic numbers are going to be skewed because of Covid- The best way to measures of all of them will be to look at the 2 year spread.


So the GDP of 2019 was $21.43 trillion agi- ($18.78 non agi)

This optimistic view is anticipating $22.6 trillion for 2020- 5.5% 2 year growth, a total of $1.17 trillion.


So we are optimistically anticipating a 2.7% average annual growth ($585 billion annual average) after injecting several trillion dollars in.



Got it.

And that’s with 8%- 6ish% will be very weak.

[OPGenesis]

Warren Buffet:

Bernie Sanders has won, and millennials have no shot at becoming wealthy compared to Boomers.

Just lol.

https://www.zerohedge.com/markets/be...-rich-compared

Capitalism is done. Maybe a decade more.

[Stizzel]

Inflation? No problem! Just print more biden bucks

[Polaris]

Inflation? No problem! Just print more biden bucks

[Seamanbeast]

This is why "cash is trash" has been the investment motto the past year. When you do ungodly amounts of stimulus with interest rates at 0% wtf did people think would happen? At the same time, they could go into negative interest rates and potentially do further stimulus if there was another crisis event. Everyone is assuming it's going to be a straight forward comeback, but no one knows what's around the corner.

[RIKTER]

Lumber and building matl's have gone up significantly, too. A sheet of OSB 18 months ago cost around $10. Now it's over $30.


The poster above is correct. Inflation started before Dementia Joe, although it will get worse under his policies.

$30? Im jelly, closer to $60 where Im at.

I read somewhere that avg cost of new home construction is something like 25K more now simply because of the price of lumber?

[N0rds]

Warren Buffet: We are seeing substantial inflation

[Chowboy]

$30? Im jelly, closer to $60 where Im at.

I read somewhere that avg cost of new home construction is something like 25K more now simply because of the price of lumber?

$60 effin dollars????


I'm sensing a business opportunity...

[GreatOldOne]

Demand rises as money is poured into the economy and states reopen business.

[SaviorSelfJT]

The only saving grace we have right now is that there's still a lot of people that aren't working

If we can them into jobs and get production up, the inflation may not be as bad as it would be otherwise

[SaviorSelfJT]

$60 effin dollars????


I'm sensing a business opportunity...

Old news, 25k was a few weeks ago. Read an article that its now around 35k

https://markets.businessinsider.com/...s/lumber-price

There's the lumber price index. Has literally been getting more expensive by a few percentage points every fukin day

[A-GAME]

But Janet Yellen told me......

[WeBoutDat]

I agree we are seeing more inflation.

One question to ask yourself...why is inflation bad? The MSM repeatedly emphasizes inflation is bad bad bad.

Ask yourself who has the most to lose from inflation...Is it the ruling classes with enormous amounts of wealth?

Or is it the middle classes who are still earning income with their valuable skills, and who likely have a fixed-rate mortgage, student loan debt, and consumer debt?

Once you ponder this question you will start to overcome your programming.

Would make sense if wages would rise with inflation..but they never do.

[xpin2winx]

Inflation will hit me hard when bananas at trader joes are no longer 19cents.