Global Depression 2022 - Time to do the Breadline Boogaloo!

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Price caps, of course, only work if they can somehow force Russia to adhere to them. If they can't, then all they're doing is cutting supply to 0.

 

[Irrational Exuberance]

Price caps, of course, only work if they can somehow force Russia to adhere to them. If they can't, then all they're cutting is their own throats.

Fixed that for you.

 

[Kujo Jotaro]

They already are, with certain things. Housing, for example. Every boomer I know literally cannot grasp the concept that a family with a single, or even two, full time jobs simply cannot afford to buy a house in 2022. "Just buy one, it's not hard!" Yeah they uh, want $300,000 for a 1 bedroom shack. "That's bullshit and stupid that house isn't worth more than $45,000, tell them that's what you'll pay and once they can't sell it in a month they'll come talk to you." They already got an offer for $335,000 cash. Next week they're gonna have contractors replace the carpet and add a Gazebo, then they'll be asking for $400k. "Well that's just... stupid."

Watching this shit collapse around them is going to be a treat. For other, non financial, examples of this, watch any normie boomer trying to deal with politics or culture shit that has changed since oh, 1980 or 1990. They literally can't grasp that things are different now, that the things they were into aren't the things modern young adults or children are into. Worse, they have a death grip on all this stuff and when they finally lose it it's going to be weird as shit in media and entertainment and the like for a few decades.

The mentality that needless home renovations some how add value to a house has infected the younger generations as well. When I hear this logic floated out my blood boils, it's so flawed and disconnected from reality that I can't help but seethe. Mostly because its ensured I'll never be able to buy a home in the current system; I could do so and could've done so in the past, but only the recent past as I graduated from college only 3 years ago, but I know if I buy a house now theres a high likelyhood I lose it if and when I lose my job because of economic collapse. Also I hate debt, and always have so I refuse to indebt myself for a decade plus to buy some shitty boomers investment home.

 

[FatalTater]

The mentality that needless home renovations some how add value to a house has infected the younger generations as well.

But how can a house even stand without travertine tile on the floors and gray paint on the walls? Surely it would collapse in a strong breeze without them!

 

[Vyse Inglebard]

Any econ Kiwis know what this means? I assume it's a bad sign among many bad signs?

 

[The Ugly One]

Pretty homes sell more easily than ugly ones. $5K in renovations = $10K-$15K in selling price. Don't ask me why retards prefer to pay the seller 3x what they would pay a contractor.

 

[DavidS877]

Pretty homes sell more easily than ugly ones. $5K in renovations = $10K-$15K in selling price. Don't ask me why retards prefer to pay the seller 3x what they would pay a contractor.

My mom inherited my Aunt's house. Sure enough $75k brought the selling price up like 200k. And, of course, it was all cosmetic crap, you'd still need to upgrade all the electrical and do a bunch of other stuff to make it modern/usable.

 

[Meat Target]

Don't ask me why retards prefer to pay the seller 3x what they would pay a contractor.

They probably just don't wanna deal with a contractor directly.

 

[Kujo Jotaro]

Worth the 2 minute watch time

 

[F13 Key]

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Any econ Kiwis know what this means? I assume it's a bad sign among many bad signs?

The US Fed sets the borrowing rate which banks lend money to one another by, which is currently up to 3.25%.

It uses short term secured loans called "repos" or "reverse repos" to add or reduce liquidity in the economy by providing them cash to inject it, or borrowing cash from them to remove it, respectively

Given the choice of lending money between themselves, or lending it to the Federal Reserve, they will usually choose the Fed's slightly lower interest rate (3.05% for reverse repos) because it's less likely to collapse than a bank is.

Essentially, the Federal Reserve has borrowed $2.426 trillion in cash from the banks in the form of reverse repos - short term secured loans at a 3.05% rate - to remove that cash from the economy. So they are paying banks something like $250 million a day in interest to stuff the banks' cash - the cash the Fed itself created when it went all MONEY PRINTER GO BRRR during 2020/2021 - in a mattress to reduce inflation caused by overabundant liquidity.

TLDR the Fed printed too much fucking money during covid and since this is clown world, is now paying $250 million a day to banks so it can do nothing with it.

 

[Kujo Jotaro]

 

[Pro. Memer]

This economy is a clown on dancing on stilts climbing up a ladder propped up on another ladder and somehow hasn't fallen over yet. It's insane how long it's kept going.

 

[F13 Key]

To be fair to the USA and Fed, they are doing more to combat high inflation right now than I expected them to. The everything bubble really is being popped by them. That's why every major currency has lost ground against USD, most other countries are still struggling with that "soft landing" shit to avoid recession which both the US and Canadian Fed have largely given up on. It's nearly guaranteed there will be a moderate recession now starting in Q1 2023 or possibly Q4 of this year.

This actually does have some benefits. Stockbrokers don't actually care much about recessions, they care about predictability. Knowing it's coming means they factor it in to their outlooks and adjust their buys around it. The US derivatives market is tens of trillions of dollars in net value. and that market is one unaffected much by which way the economy is going. Money to be made on a rise, and a fall.

 

[Angry Alt Right Nerd]

To be fair to the USA and Fed, they are doing more to combat high inflation right now than I expected them to. The everything bubble really is being popped by them. That's why every major currency has lost ground against USD, most other countries are still struggling with that "soft landing" shit to avoid recession which both the US and Canadian Fed have largely given up on. It's nearly guaranteed there will be a moderate recession now starting in Q1 2023 or possibly Q4 of this year.

This actually does have some benefits. Stockbrokers don't actually care much about recessions, they care about predictability. Knowing it's coming means they factor it in to their outlooks and adjust their buys around it. The US derivatives market is tens of trillions of dollars in net value. and that market is one unaffected much by which way the economy is going. Money to be made on a rise, and a fall.

How long is this recession going to last and are they going to cancel it again?

 

[Socrates]

How long is this recession going to last and are they going to cancel it again?

It's all such a joke. I still keep seeing these journo morons using the terms "chance of recession" "possible recession". Like no you retards the recession began back in July when GDP numbers came out negative for the second quarter in a row (Well, technically I guess it began Q1 2022 but you know what I mean.) It's such a farce, they are 100% stalling on calling it a recession until the midterms are over, I am totally convinced that's when they lift the curtain to reveal the wheels fell of this bitch months ago.

 

[Tsukasa Kadoya]

This economy is a clown on dancing on stilts climbing up a ladder propped up on another ladder and somehow hasn't fallen over yet. It's insane how long it's kept going.

Its on life support. If the red wave does happen expect the cord to be ripped out in a nano-second, leaving the "filthy evil nazi" republicans with a dead economy.

 

[The Grognard]

It's all such a joke. I still keep seeing these journo morons using the terms "chance of recession" "possible recession". Like no you retards the recession began back in July when GDP numbers came out negative for the second quarter in a row (Well, technically I guess it began Q1 2022 but you know what I mean.) It's such a farce, they are 100% stalling on calling it a recession until the midterms are over, I am totally convinced that's when they lift the curtain to reveal the wheels fell of this bitch months ago.

The reason they keep being this vague are solely so the numbers can be artificially propped up to be better than they actually are. The moment someone of real power says the real extent of the current situation; that being stagflation, the stock markets would crash hard.

 

[Rome's rightful successor]

Sorry Scandinavians you can't have your pickles.

 

[kurosawa]

What is likely going to happen in the US is what happened in England and will likely happen to the ECB this week. Wall Street dumps bonds to drive yields up, which the government can't afford to pay. Wall street is trying to force the government to go back to money printing and halt rate hikes/lower the fund rate. And right on time the UN is calling for the Fed to do exactly that.

That is why the Fed is trying to force everyone into the dollar and bonds. You have to suffer with us.

I found someone who eloquently lays out what the overlords have in store for us - Dan Tubb.

Interview with a podcast:

Twitter thread on many of those points (archive)

They're going to take option 3 - try to contain inflation while printing money. Japan already has, England already has. There's also the reality that the Fed wants inflation - it shrinks the debt. They can live with a 7-9% CPLie annually for several years, even if we can't because its really at 15-20%.

 

[Polarity]

They're going to take option 3 - try to contain inflation while printing money. Japan already has, England already has. There's also the reality that the Fed wants inflation - it shrinks the debt. They can live with a 7-9% CPLie annually for several years, even if we can't because its really at 15-20%.

Zerohedge mentions that the Fed will change its inflation target from 2-3% to something like 4-5% in the future so that it doesn't have to keep raising interest rates.

Expect a wave of propaganda in the near future that this is good.