[FollowingTheDao]

Now we have high oil prices (not yet at the high) also with general (corporate induced) inflation, combined with an even greater separation of wealth. All things that point to a a recession again. But war is the variable here.

[ejb999]

I don't have the figures handy, but based on what I am seeing I suspect we are entering a period of the biggest wealth gap in recent history between the rich and everybody else.

Massive, massive asset inflation, for those that own things - and the bigger and more you own, the more you have benefited, and then massive inflation in consumer/everyday products like food, energy and clothing and for those seeking to buy their first house, as well as renters finding out the rent is being jacked up rapidly - i.e. the people who can afford inflation, are seeing massive gains in their asset portfolios, and the people who can least afford it - are on the verge, if not already at, a disaster in the personal economic situation.

We are heading for a train wreck of massive proportions imo, best to get prepared if you can.

[ryanSrich]

I feel this. 2021-2022 has been insane as a person looking to buy a new house, car, and get kids into daycare. Luckily we already own a house with good equity, have a good car, and have childcare. But we’re looking at moving and upgrading a few of these things, and let me tell you. The demand for housing and vehicles is beyond anything I could have imagined. Houses routinely selling for 30-50% over list. Car dealerships selling new cars at $10k over MSRP because the two year old version of that car is selling for the price of a new one used.

If we didn’t have existing assets like a house or quality cars we could trade in I don’t know what we would do. Just having two good salaries, a lot of cash, and high credit isn’t cutting. You need assets.

[willcipriano]

> (corporate induced) inflation

Why did the corporations wait for the government to print tons of money to decide collectively to raise prices?

[FollowingTheDao]

You say "government prints tons of money" like that goes to the people and not to the corporations.

See, inflation would not be a problem if wages kept up with rising prices. But they do not? Why? Because profit and stock buybacks. Corporation are not paying you a fair wage based on the cheapness of the money they can get from the fed. Instead of keeping profit stable they aim at not raising your salary and keeping that profit so their company looks better and their stock price goes up.

I guess you still believe in trickle down economics?

[pavlov]

Did you notice there was a multi-year pandemic that destroyed supply chains and greatly increased labor costs?

The causality is not as simple as “governments printing money -> inflation”.

[HarryHirsch]

Yes, this time it's a stuff shortage, not an oversupply of money. But the central bank still wants to raise rates, which is silly. The current prices and shortages are a result of longstanding policy, just not monetary policy.

[long_time_gone]

When did the governments stop printing tons of money?

[ejb999]

we are not seeing 'corporate induced inflation' we are seeing government policy induced inflation - very big difference.

[mirntyfirty]

I’d claim inflation responsibility is on both sides. I forget the number off the top of my head, but a rather large proportion of the price increased were collected as profits. Given that a number of industries are dominated by a handful of large conglomerates, the incentive to price products competitively seems rather low.

However, this is also correlated and reinforced with the actions of the federal reserve for a number of reasons.....

[FollowingTheDao]

This is from BUSINESS INSIDER:

https://www.businessinsider.com/corporations-using-inflation...

"Corporations are using the excuse of inflation to raise prices and make fatter profits," he said.