Anyone Afraid Of Inflation?

That's capitalism. Charge as much as you can for your labor as possible. Our employment numbers are at 65 year highs. The employee has the power right now. Nothing like a good recession to reset the scales.
When a recession hits people will get laid off.
Then it will have a downward spiral the other way because nobody will have any money to buy anything.

The fed's messed up big time last year by not slightly boosting the rates and slowing down the bond purchases.
 

Up In Smoke

Well-Known Member
When a recession hits people will get laid off.
Then it will have a downward spiral the other way because nobody will have any money to buy anything.

The fed's messed up big time last year by not slightly boosting the rates and slowing down the bond purchases.
I agree, but the opportunity was also lost in 2018. Hindsight being 20/20, had the Fed stuck to it's guns in 2018/19 and raised rates and started QT, they could have reversed course in 2020 instead of sending everyone cash. In 2020 the Fed was trying to bail a sinking ship with a teaspoon. Two plus trillion in spending and another 700 billion in subsidies were the only bullets left at the time.
 
I agree, but the opportunity was also lost in 2018. Hindsight being 20/20, had the Fed stuck to it's guns in 2018/19 and raised rates and started QT, they could have reversed course in 2020 instead of sending everyone cash. In 2020 the Fed was trying to bail a sinking ship with a teaspoon. Two plus trillion in spending and another 700 billion in subsidies were the only bullets left at the time.
Now they don't have any tools to work with
 

Up In Smoke

Well-Known Member
And put us into hyperinflation?
As a business owner, I have more flexibility when capital is a fixed cost. Companies not knowing how many rates hikes and how big each will be stresses their free cash flow and sends panic through the system. I think hyperinflation becomes an issue if we raise too fast or too often. Maintain a raise and monitor pace until the desired outcome is achieved. IMO
 
As a business owner, I have more flexibility when capital is a fixed cost. Companies not knowing how many rates hikes and how big each will be stresses their free cash flow and sends panic through the system. I think hyperinflation becomes an issue if we raise too fast or too often. Maintain a raise and monitor pace until the desired outcome is achieved. IMO
There are no more fixed costs. Look at the price of fuel utilities and paying your employees not counting the increases in your inventory prices
 

Up In Smoke

Well-Known Member
There are no more fixed costs. Look at the price of fuel utilities and paying your employees not counting the increases in your inventory prices
Most companies, large and small contract most of their costs. We get 90 to 120 day billing on most account payable line items. This allows us to eat some of the costs when we've under budgeted. We do the same for some of our clients. They prepay when profits allow and run on credit when business dictates.
 
Most companies, large and small contract most of their costs. We get 90 to 120 day billing on most account payable line items. This allows us to eat some of the costs when we've under budgeted. We do the same for some of our clients. They prepay when profits allow and run on credit when business dictates.
Oh I see lots of my business customers slowing down because their customers can't afford the jobs right now at the inflated prices
 
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