US Inflation Is A Scam
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- Опубликовано: 14 май 2024
- US Inflation has gone up to 3.5% and everyone is panicking.
The stock market is tanking, the Fed is saying they will not cut rates, and the media is selling fear.
But is this inflation data actually bad? Why is it high and what's driving the increase in CPI?
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I appreciate the outrage... I certainly feel it. I am tired of being unmercifully gouged on every single thing in my life. Enough is enough already. The system is rigged and corrupt to its core. Im losing hope that there is anything we will ever be able to do in order to fix it. Im beat down.
Welcome to Late Stage Capitalism where by 2035 we gonna have our first Trillionaire, while the rest of us are living in poverty for generations! Isn't that great?
I can only agree with you and don't know what to suggest other than the old adage "Grown Yer Own". Try off grid, avoid the big corporates (McD's etc) put your money such as it is elsewhere and drop the level of spend and increase the level of buying gold and bitcoin. Solar panels - batteries - minimise dependency on the Grid in all its many forms.
wrg
@@ouethojlkjn Solar panels? How about not relying upon PRC-imported materials that will boost their GDP over our own?
i been asking gpt what the bible says about dealing with evil just for a way to handle this exact feeling. "A man's search for meaning", applies to all genders, really helps me have hope. Carry on brotha I got faith you'll make it through
Car insurance in the USA and UK should be very heavily price regulated as it is a mandatory requirement imposed by government.
At the moment car insurance companies know you HAVE to by their product by law, so they can charge what ever they want.
I hate the idea of government interference in the markets, but when it is something that the government is forcing you to buy, the government should control the price of it.
That is happening now in California. Insurance companies are exiting the market for home and vehicle insurance as they cannot charge the true costs of providing cover. Good luck getting insurance in that state. Be careful what you wish for.
Yep. Plenty of other countries have a national car insurance scheme. Let's do that. But then that would break the cartel... Do any insurance company bosses donate to the Tories?
Bad idea. They will just go out of business or leave your state.
"Car insurance in the USA and UK should be very heavily price regulated "
They already ARE heavily regulated and thats exactly why prices are so high.
because government regulations PROHIBIT competition across state lines the insurance companies enjoy a largely monopolistic environment where they can raise prices and the customers cant shop around to find a lower rate from someone else.
so how do you fix a problem that was caused by too much regulation and not enough of a free market?
INCREASE REGULATION OF COURSE! just kidding. thats obviously only going to make it worse.
the true root cause of these problems is overregulation so support the ongoing efforts to increase competition and DECREASE regulation by allowing insurance sales across state lines.
They can't really. It's a competitive market with dozens of players.
Having paid my car insurance recently, it is skyrocketing since the lockdown despite my driving not changing and no accidents or citations (knock on wood) and no filed claims. Local electric utility and GEICO are ripping off customers for literally no reason.
The only argument they might have is the made up inflation figures but I agree, the renewal premiums are ridiculous.
Climate change electric bills 😂
Same.
State farm raised my rate 30 bucks a month on one of my vehicles for no reason. I switched to classic car insurance on that vehicle and pay less than the original rate.
inflation in reality: everything is twice as expensive as it was 10 years ago
inflation in reports: 2%
All it cares about is difference between now and 12 months ago
Nah.
You need 7% inflation to double prices in 10 years 🤔
@@rumfordc You have no idea what you're saying.
@@johnristheanswer I know what I'm saying, you just don't want to hear it.
If you think grocery prices have only gone up 2% in the last year, you haven’t been shopping. It’s ridiculous, and due to greed for sure.
... so they weren't greedy the year before that?
@@rumfordc Urinating on someone's face and telling them it isn't raining will only work for a little while. Stop gaslighting.
@@mixelplik you're just dodging the question. greed has always existed, it's not enough to explain inflation.
I guarantee you that food inflation is nowhere near that low.
@@rumfordcwhen was the last year you saw a deflationary year?
Because you are talking as if inflation was new.
Since the UK is in a similar position when it comes to energy prices and car insurance, my theory is the governments are allowing this to happen so they can tax us through these company earnings without raising taxes.
It doesn't make sense though, corporation tax is lower than an everyday tax for the normal working brit.
I just think they are all incompetent, how the fk can you not notice a massive 20% increase for insurance, also the increase in energy. All of my mates were complaining about insurance prices and housing costs so that tells you something
With the added benefit that these "taxes" are not even wasted on public services! Just profits for their shareholders (probably friends of them)
@@felixpuscasu5625meaning?
What wokish nonsense this kind of thinking really is…
The UK energy regulator deliberately removed competition from the energy market to keep prices high. Everyone is forced to pay the same rate for energy. What you say makes sense as the government is effectively able to decide how much tax revenue it would like by controlling the price cap.
Great analysis! Spot on.Thank you for the words of wisdom!
Brilliant work, thank you
Excellent point of view. Thank you
On point! Well said!
Fantastic!
Thank you Sasha!
Love it. Thank you 🤙
Thank you for your work mate 👏
👍
Sorry he's wrong this time. Inflation has become supercore. Houses are 20+percent overvalued. The rate today is already considered low. It's not normal to consider a sub 4 percent rate as "normal". The prime rate should only go that low during emergencies like 2008
@@0my So what’s your argument?
Rates should stay here & let property fall naturally to find its “true value”?
Agreed this would happen, but slowly. The market is frozen with these rates people aren’t buying and selling up, they are downsizing.
The goal is the reduce the excess liquidity and stop prices from running away, that has happened, prices aren’t running away with inflation only insurance is doing this because it’s a cartel.
Rent costs are higher because of the high interest rates, if the interest rates lower so will rents come down the match them, it’s as he says chicken and egg which comes first?
It’s a stand off but the reality is there isn’t spiralling costs anymore.
If they do reduce rates house prices will increase and rents fall similarly and we’ll have a more natural market.
We’re in a position right now is where renting is almost as expensive as buying, which is mental because of rates!
Again to reintegrate the overall message here these moving dials are taken advantage of.
If it’s cost of oil drop petrol price lag and price gouging occurs
Same as rent and housing
Even when rates come down rents will take competitor price reductions to fall lagging, price gouging from land lords
Unfortunately greed is the winner the consumer is ripped off
“All Inflation is a rip off” to the consumer that’s the underlying message of the video, someone go tell Kevin before he has a heart attack
Hopefully, you'll be doing a similar video on UK inflation next week.
Wow, great research and so true
Excellent analysis, thank you.
When i see inflation data today my first thing was ”What would Sasha says”🎉
💯
Me too
When I see inflation data I hear elevator music 😉
Sasha talking nonsense again.
I want to see his shock when UK inflation goes below 2% this year.
Sasha is best. Keep up the truth.
This country is going to shit all due to greedflation and shrinkflation... I went to get a Chicken & Shrimp Hibachi today from a local restaurant, used to be $11 with soup or salad back in 2020, now it's $19 no soup or salad...
inflation is when no salad
@@adhiwicaksono6149 but i love salad with onionsssss!! :D
stop going
@@onionpeeler2023 So is a whopper...it used to be $5 or $6 w/ fries and drink. Now, it's over $10. Back in 1990...i think a whopper is just $0.99cent lol. This is what happened when US keep printing money. There is no turning back now...they have to keep printing to survive. They're piling up debt annually in record number.
@@reptilexcq2 yeah, it sucks...
Brilliant analysis Sasha. Thanks
🙏
Excellent content, Sasha!!! Thanks...
11:07 "Today rent prices are flat year on year." Keep dreaming. No idea where those 'statistics' came from, but this is absolutely not true in my city. They are jacking up rents +10% every year.
dude has to be buggin, my rent went up 3 times in the single year I've been here lol
@@0xx0CoffeeFoam0xx0x multiple times in one year? oh man. that should be highly illegal. unbelievable the govt lets landlords get away with such awful offenses against citizens.
@@0xx0CoffeeFoam0xx0xHe isn’t bugging, he’s adhering to the data. All of us know that CPI data does not truly represent real inflation, but this is data that the Federal Reserve use as guidance for monetary policy, so we have to use it.
@@0xx0CoffeeFoam0xx0x depending on where you are, that is actually illegal and you should absolutely seek out legal advice
@@dumbcat Believe it. I sold my house (Memphis area, Tennessee) that I was paying $1300 a month for a note, 1 month later the corporate buyer of my house relisted it as a rental for $2200 a month. This was 3 years ago. And it was not the only one: every house in my old neighborhood was turned into rental and overnight the rents doubled, literally.
Don't hold back Sasha 🔥🔥🔥
Always looking forward to your videos after CPI reports
Damn, what a well researched post. Thanks for these amazing insights.
Beautifully explained Sasha
🙏
great video as normal , you sir are doing gods work , keep it up !
Thank you!
I know we shouldn’t cherry pick but If Motor Insurance was excluded then inflation would actually be below 3%!
I think🤔 happy to be corrected
@@InvestingwithDan Considering that CPI is about a basket of goods and uses weights based on how much the average consumer will spend in each sector, removing something as significant in the regular budget would make for even more skewed data than we currently have.
The weight of motor vehicle insurance is arguably underweight at 2.854%. YoY is 22.2% inf.
Simply removing it would reduce YoY total inflation to ~ 2.9%.
You would then gross up that number to account for the removal of that category which would take you to ~2.95%
I previously used the incorrect YoY number.
I am crap with weightings but if Insurance is c3% weight and is up 20%. Then, 3%*100/3 = roughly 100% do the inverse to the 20% increase /100*3 = 0.6% which if taking off yesterday's interest rate is c2.9% current interest rate excluding motor insurance?? I did have a reply which stated i was wrong but this seems to have been deleted...
@@InvestingwithDan The way to work it out is this (Inflation without motor insurance):
[Inflation - (weight of Insurance) * (insurance inflation) ] / (100% - weight of Insurance)
So: [3.475 - (.02854 * 22.2)]/(1-.02854) = 2.92%
Amazing video, thank you so much for all this information!
Thanks for the actual data, Sasha. Good sense 🙂
100% Spot-on analysis. Can offer three (3) other anecdotal data points: Here in FL, the main power company (FPL) has been absolutely raising rates in-line with the estimates mentioned, and paying for elderly parent on fixed income have been tracking that. Also, the car insurance rates and housing costs (rental leases), in the same area that we've been carefully watching are really notable, especially Year-on-Year, and would have to say that exactly matches the Fed data tables shown.
Property insurance is skyrocketing in FL. My insurer wanted double since last year so I had to go with Citizen’s, so my premiums only increased by 25%. Still more than double what I was paying a few years ago.
Car insurance is rocketing up too, though Florida generally is by far the most expensive car insurance market I’ve been in.
Go sasha! 😊we love ya x
The voice of reason...
🙏
Amazing video, well detailed and data driven. Thank you
More power to you!
Spot on as usual! Thanks for the review of the CPI report!
Been waiting for your take thank you so much for the great explanation as always
Took me a while to put it together! :)
Thank you for the refreshing truth ❤
Very well explanation!
I have been waiting for your commentary all day Sasha as you are the only one that spits the truth on this BS!!
Damn straight - only dude on RUclips calling it like it is
No he isn’t lol Guess you don’t watch many others.
Couldn’t agree more!
Good stuff, Sasha! Well played!
Probably one of your better videos. Well explained :)
Government deficit spending, high taxes and regulation are what make prices high.
This is exactly what I was thinking. Australia is in the same boat. The media states everything is ok but people are losing jobs, wages are falling rapidly, employers a SUPER picky, businesses are failing, and every one is broke and full of debt. What could go wrong?
Employers are absolutely not picky, at least in the UK/US. There are still large labour shortages. Although there seems to be less liquidity in the overall economy, business investment is still strong and businesses are still making large spending commitments (all of these are inflationary) Sure energy prices are volatile, but if energy prices stay high for long enough we will see more inflationary movement as it will filter through to other commodities, which then result in greater spending on labour which then becomes sticky. The next few months will be critical.
Feels like we're back to 08 in some ways.
I remember reading in 09 about Australia looming recession that nobody was talking about. Ireland was already full swing in the recession where anyone under the age of 25 had a 25 percent chance of being unemployed. As people were setting their sights to Canada and Australia to piss off for a couple of years to work until things changed here, the newspaper sent a reporter to aus and made a mention that Australia was going through the same denial that we had been going through the two years prior.
The radio show would be taking callers, one would ring in and mention how tight everything was getting and the call would be quickly ended and the beach boys would be played to change the mood keeping up appearances.
The media is evil. Nothing but propaganda for the radical left.
@@DK12_ what u talking, it is horrible out here.
i am from IT, seeing many companies new projects laying people off and keeping a tight lid on budgets(usually they throw heavily in development of new things)
Love this video! Everyone needs to hear it.
Great expectation in a video ❤
You are correct and this is so messed up for the people.
I spoke to someone that works at a huge electrical company here in the USA and he said they are getting killed having to build out new infrastructure and capacity to produce much more electricity for EVs.
This is correct, I'm in the industry as well on the construction side. Although EV is not entirely to blame. Nat Gas infrastructure is being built through the roof and is what your high bills are paying
I thought something was fishy when he briefly covered to operating loss of that electric company. I think he quickly mentioned that increased.
Operating income went up by 54%. They didn't make a loss.
How are they making so much more income if "they are getting killed" by whatever fake argument you've just come up with
@@andygray9429
Sasha is only showing one quarter of one segment of Duke Energy to make his case. The overall corporation made normal profits. Go to Yahoo Finance and look it up for yourself.
2021 NOI was 5,841,000. 2022 was 6,424,000 and 2023 was 7,103,000. These numbers are in 000s.
Therefore, NOI increased by 9% in 2022 and 9.5% in 2023 which are both very reasonable.
I was thinking of this too. Is the electricity part only the production of electricity? Or is it the delivery too? Because here in Sweden the electrical infrastructure companies have been hiking rates by a ton in the last five years. They have done so with regulators approval as long as they use the money to build out infrastructure for electrical cars and the extra capacity required in a system where electricity production goes up and down with the sun and wind.
Excellent analysis!
this is the first one of your videos I have seen, great analysis, subscribed!
Was waiting for your breakdown 👊🏻
Thank you! Keep informing us! ☺️
Excellent explanation
Excellent report! I only hope someone with ability is able to see and change this. Prime example of greed.
The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
In fact, I had no prior experience or understanding when I began investing in 2020, but by the end of 2023, I had made a profit of almost $850k. All I had been doing was going by what my financial advisor had told me. This demonstrates that all you truly need is a professional to assist you; you don't even need to be a great investor or put in a lot of work.
@@noah-greenewho is your advisor please, if you don't mind me asking?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insurance Premiums in Australia have gone through the roof, both our Vehicle and house insurance has doubled in the past 2yrs.
Great analysis, FED is keeping the cuts for later part of this year. Good dips to buy.
Fantastic video, following you now
Everything we NEED to live and survive is going up... and that is everywhere! Seems strange.
Right now, we stand at a crossroad of possibilities in the market where the boundaries on what we can achieve is not just dictated by the Fed, or the world around us(war, inflation). There's always going to be recession for some people while others amass wealth, think about it.
I think this is a time where financial advisors may come in handy for everyone, not just newbies
IMO, financial advisors are the most sought-after professionals after doctors. My portfolio is well-matched for every market season and just yielded 85% from early last year to date. I and my advisor are working on a 7 figure ballpark goal, though this could take another year.
*@Buffet-walton22* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Brilliant Detective work and always a fun angle of sarcasm to tell the story! It would be interesting to plug in near Zero numbers for Insurance, Shelter, and Trans Services as if those items were Zero for the month, and see what the actual inflation WOULD be without the hikes in those categories.
Brilliant as ever.
You need to do one of these for the UK please!
Unfortunately it kinda doesn’t matter. UK is a sideshow even for residents. And whilst inflation matters to me as an individual it is my individual rate not a national average that I care about. US inflation impacts my investments UK not so much. All of this is imo😂
Excellent breakdown. This is why when I was looking at Trueflation, they have a number at 1.78..... complete disconnect from the CPI. They had inflation at over 11% when the fed was saying there is no inflation.... so the FED / CPI is lagging again....
FED is lagging again, thanks God we have Sasha to figure it out.
Trueflation is totally wrong. In reality inflation is still over 10%
It is the old story - look out the rear view mirror to where we have been, and not see the brick wall in front of us.
Very good video thanks
🙏
what about the recent rally in brent and what impact could it have on electricity prices?
You keep me level headed, thanks Sasha!
Thanks Sasha...excellent as ever. Great work!
Excellent Video-Thanks Sasha for the reality check on today’s inflation numbers.
Great work, and yeah id bet money rates come down at the end of the year like you said, makes perfect sence.
* sense
Ok Sasha- you need to understand regulatory lag. Electricity is going up now instead of last year because utilities need to ask for rate increases. They absorbed all the higher inflationary costs for 2 years and now are asking to be made whole. Rates will be shooting up this year by 10-20% to make up for cost increases. Which will make businesses charge more as well
It is a cycle. You cannot break cycle without recession. Soft landing is a fallacy- which we will see
On point my man!!!
Sorry he's wrong this time. Inflation has become supercore. Houses are 20+percent overvalued. The rate today is already considered low. It's not normal to consider a sub 4 percent rate as "normal". The prime rate should only go that low during emergencies like 2008
Damnit you did it again Sasha
brilliant
Sasha,
You explain things so well! I really appreciate it. Other RUclipsrs talk so fast and confusingly I just feel palpitations (e.g. MK). Thanks!
Wow, excellent research and no BS here. Thanks so much for this.
Good analysis
Got my sub.
This is what I keep telling my wife. Once rates go down housing will free moving but housing will go up not down. People who had low rates don’t want to sell. And cannot buy now bc rates are so high.
the main reason housing prices have been going up so much is the extremely low rates we had for a decade though. Yes now you’re in a scenario where nobody wants to sell because they’re on low rates, but that’s no reason to go ahead and lower rates back to levels that are unreasonably low.
The level they’re at right now is historically a pretty normal level.
@@TimvanHelsdingen- then we're not selling for 30 years
Good way to grow your company though... Look shareholders our income has increased by 30%... To the moon then the rug gets pulled from underneath them when they are ready.
Never understood why energy production is in the hands of private companies. Like you say energy is needed for everything and it's probably the most important part of our lives but we let greed dictate price and not the actual cost of production?? I'd rather give my energy bill money to the government if they promise to give me energy at cost.
I appreciated this video and the data.
I would be curious as to how labor costs would have an affect, seeing how payroll is the largest expense for a company.
And on this side of the pond Tesco announce a close to 200% yoy rise in profits.. Like the power companies, not dropping their prices inline with their reduction in costs.
Preach Sasha.... Greedflation is a thing. And the Fed and media are doing a crap job being transparent about this.
Yeah, its not like government officials don't have stocks in most of the SP500 companies that are creating the current greedflationary climate. They don't have anything to lose if said companies were to take an L. Nope, never.
They have to do their best to help Sleepy Joe get reelected so they can keep ripping everyone off.
It’s government spending. Debt to gdp is 130%. The fed loves inflation as it’s more revenue aka more expensive, more taxation. 1 trillion on interest of government debt yearly…..end social programs and 2 trillion in green agenda. Oil is going up, transporting goods going up….higher prices. Accumulative inflation since Biden took office is 19%….just keep borrowing🙄
Welcome to Late Stage Capitalism where by 2035 we gonna have our first Trillionaire, while the rest of us are living in poverty for generations! Isn't that great?
Your the No1 favourite financial analyst on YT ✊🏻
Thank you so much!
Excellent video deflation is on the way
As solar becomes cheaper I wonder if energy companies start to charge more to offset their losses.
Also? Atleast in CAc energy companies have to get approval to increase rates but from what I’ve read they’ve never been told no by the state lol
Here for the Meet Kevin fight 👊🏼 🍿
Simple, elegant, precise thank you and keep up the good work.
🙏
Since when is 16 minutes of waffle "elegant" ?
Great information
Great video! The analysis is based around the published data, I just wonder how much the war is affecting all of this? Can you do a video explaining the war’s impact please?
Its f'in ridiculous that this is the second month in a row you can make the same argument supported by the same data.
Well - a bit more data this month :) But that’s all I ever do. Just go through the actual numbers. :)
@@SashaYanshin honestly it's just sad, I look at the thumbnail and I think it's clickbait when in actual fact you are right everytime
@@SashaYanshinyes. The economy is more than just numbers unfortunately Sasha
@@maksimso5300Same lol
Dude, if his theory of inflation was true (ie inflation is already under control) then that would mean, the correct action is to make NO rate adjustments! This theory of "the rate should go down" is nuts. Why should it go down? Where does that come from? His age? I've been in the workforce since the early 90s. Do people not remember the GFC? The overall goal is to get it closer to 6 or 7 without jacking up the economy. 6 or 7 is the goal because from there it can be adjusted up or down depending on the current state of the economy. 0 to 1 percent could kill an economy. I recommend reading "The Age of Turbulence"
Meet kevin made a video about this one. Get em back!
Thanks!
Excellent investigatory skills! So in depth. Thanks for doing the detective work for us Sasha.
Are we being fleeced the same in the UK with the "cost of living crisis" which seems to follow similar patterns with the US?
Dropping truths 🔥🚒
At this point we could create a montage of Sasha's slow decent into insanity as the Fed refuse to act.
* descent
The market can remain insane longer than you can remain sane, or something
He's always been this insane thou so the montage would just be the same thing from start to end lol
Fantastic Analysis
thank you.
I hear you on most of this, but to say food prices do not play a significant role is a joke. I bought a pack of gum and a gatorade yesterday, and it was $175.00.
😂😂😂
I bought a packet of crisps for £90 and all that was in it was air.
Sasha, honestly this sounds like a bunch of excuses as to why you are wrong so far about inflation, and in turn interest rates staying higher (for longer). Inflation can be really sticky, as history proves. As I’ve said before, don’t try and predict the macro, including inflation and interest rate movements, it’s a fool’s game. Warren Buffett has often said this.
It gets the clicks, though, and midwits love this stuff
Thanks
Well, that was pure gold.