Inflation is racist

SFGbob

“Since 2004, which is the earliest point where we have some data available on, we have found that inflation inequality has increased in that low-income households have paid higher inflation than high-income households,” said David Argente, a Penn State economics professor who published a paper on the topic earlier this year. “This was even more pronounced during the Great Recession.”


And because workers with low incomes are more likely to be Black and Hispanic — their median weekly earnings for full-time jobs were significantly lower than those of white and Asian Americans in the most recent quarter of 2021, according to the Bureau of Labor Statistics — they are also more likely to take the brunt of inflation.

https://www.politico.com/news/2021/12/11/soaring-inflation-wealth-racial-disparities-524111

Since Biden's policies are responsible for much of the inflation can we conclude that Biden is a racist? Kobe, what say you?

PurpleThrobber

SFGbob said:

“Since 2004, which is the earliest point where we have some data available on, we have found that inflation inequality has increased in that low-income households have paid higher inflation than high-income households,” said David Argente, a Penn State economics professor who published a paper on the topic earlier this year. “This was even more pronounced during the Great Recession.”


And because workers with low incomes are more likely to be Black and Hispanic — their median weekly earnings for full-time jobs were significantly lower than those of white and Asian Americans in the most recent quarter of 2021, according to the Bureau of Labor Statistics — they are also more likely to take the brunt of inflation.

https://www.politico.com/news/2021/12/11/soaring-inflation-wealth-racial-disparities-524111

Since Biden's policies are responsible for much of the inflation can we conclude that Biden is a racist? Kobe, what say you?

Biden has exceeded Kobe’s expectations.

WestlinnDuck

The single biggest hard asset owned by Americans is a family home. That provides some protection from inflation for those homeowners whose homes are in a desirable area. Poor people don't generally own homes and if they do, they are in a poor area with bad schools, drug and crime issues. Inflation absolutely hammers renters and commuters whose cost of vehicles explodes along with gas prices and electricity and natural gas. So, the dem policies which helped destroyed/destroy thousands and thousands of small businesses and the fed printing money has led to record inflation. Using the old CPI index which more accurately tracks what the average American is buying has would have the 6.8% official inflation rate at a much higher rate.

SFGbob

WestlinnDuck said:

The single biggest hard asset owned by Americans is a family home. That provides some protection from inflation for those homeowners whose homes are in a desirable area. Poor people don't generally own homes and if they do, they are in a poor area with bad schools, drug and crime issues. Inflation absolutely hammers renters and commuters whose cost of vehicles explodes along with gas prices and electricity and natural gas. So, the dem policies which helped destroyed/destroy thousands and thousands of small businesses and the fed printing money has led to record inflation. Using the old CPI index which more accurately tracks what the average American is buying has would have the 6.8% official inflation rate at a much higher rate.

All the more reason we should provide people with "free" housing. Housing is a human right!!!

MikeDamone

Nope. It’s actually good for regular people and hurts the rich. Need poof? It’s al right here.

https://www.cnn.com/2021/12/01/economy/inflation-good-bad-winners-losers/index.html

https://wisconsinexaminer.com/2021/04/27/inflation-boogeyman-scares-only-the-extremely-wealthy/

WestlinnDuck

George Soros who is extremely wealthy made a lot of his money betting against bad currency. The "experts" would say everything was fine, but it wasn't. Short the English pound or the Thai baht and voila - billions in profits. If the dollar goes tits up, lots of extremely wealthy people will do just fine. Bitcoin, gold and shorting the dollar will be the go to move. Most of the 2021 run up in the S&P 500 have been in just a few stocks (the FANG group and Nvidia). This isn't a broad based rally based on across the board earning increases. Sooner or later it comes down to cash flow and reasonable PE ratios.

https://www.businessinsider.com/how-george-soros-broke-the-bank-of-thailand-2016-9

George Soros is one of the most successful hedge fund managers ever. While at the helm of the Quantum Fund (founded by Soros and Jim Rogers in the 70s), he generated an average annual return for investors of 30%.

The Quantum Fund’s bet against the Bank of England in 1992 is probably the fund’s most famous trade. But this only one trade in the story and the Quantum Fund recorded many other successful trades over its life. One of the more controversial trades (or group of trades) put on by the fund was against a basket of Asian currencies, specifically the currencies of Thailand and Malaysia just before 1997 to 1998 Asian Financial Crisis.

The Asian Financial Crisis started as a localized currency and financial crisis in Thailand, but tremors soon spread to other Southeast Asian countries–including Malaysia, Indonesia and the Philippines. By the fall of 1997, the contagion extended its reach to South Korea, Hong Kong and China, the year after Russia and Brazil saw their economies enter a free-fall, Japan fell into
recession
at the end of 1998 and the US financial system balked at the possible bankruptcy of the infamous Long Term Capital Management.


The Asian Crisis started in August 1997, only a month after Thai authorities abandoned the US dollar Thai baht peg. The baht had been pegged to the dollar for more than a decade, and the Thai authorities had been encouraging banks and big corporates to borrow US dollars unhedged to fuel domestic lending for much of this period. However, as the US dollar got stronger in the mid-90s, Thailand’s trade and capital accounts deteriorated, firm’s found it difficult to meet dollar debt obligations and it became apparent the peg was unsustainable.

As soon as the peg was abandoned, it quickly became clear how bad the situation had deteriorated. Thai authorities left the peg on July 2, 1997, and by October 24 the free floating baht had depreciated by 60% against the dollar. Thailand’s troubles triggered a wave of speculation against other Asian currencies and over the same period the Indonesian rupiah, Malaysian ringgit, and Philippine peso depreciated by 47%, 35%, and 34%, respectively.

Did Soros start the crisis?
According to sources who had knowledge of the Quantum Fund’s positioning at the time, Soros bet just under $1 billion of his total war chest of $12 billion against the baht. There’s plenty of speculation that because he placed such a large bet on baht, Soros helped engineer the Asian crisis via his political connections. Yet Soros wasn’t the biggest single speculator to hold a position against the currency. Julian Robertson’s Tiger Fund had three times the exposure of Soros with almost $3 billion bet against the baht. If anything, Julian Robertson would have been more motivated to engineer Thailand's decline.

Soros has argued that hedge funds did not start the crisis it was, in fact, the reaction of Thailand’s central bank to the knowledge of hedge fund positioning that exacerbated the problems.