Bernstein Posits That A 10 Percent Baseline US Tariff On Raw Semiconductors Is "Not Going To Do All That Much," But PCs, Servers, And Smartphones Are About To Get Pricier By ~40 Percent
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Considering that we're still paying COVID prices for most things, how surprising is this?
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Inflation from the Fed helicoptering money around was probably the most predicted thing that's happened in the last 50 years. It should have surprised literally no one.
It's also no surprise that it hasn't gone away. That's called deflation and every central banker on the planet would rather be eviscerated with a rusty spoon than allow deflation to happen.
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Markets will still consider it a win if Trump does not else good in the next 4 years except for extend the “tax cuts and jobs” billionaire and corporate handouts.
Of the Top 10 most profitable companies in the world 8 of them are American. Those 8 companies lost enough Market Capitalization in the last 24 hours to fund a mid-sized Country. "The Markets" are not fucking happy at all.
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So glad I built my pc last fall. Fuck all this bullshit and everyone that voted for it.
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Or didnt vote against it
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Except that's not what happened, companies used the slowdowns in shipping from Covid shutdowns as an excuse to raise prices, then never lowered them. This isn't inflation, this was intentionally planned, don't belive me? Listen to their fucking earnings calls specifically saying it out loud.
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The internet is about to feel a lot slower for us as more services move offshore to flee the taxes.
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How do you bankrupt a casino while also running a money laundering scheme and still fail? Someone should turn his life into a movie it'd be like anti breaking bad
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Trump is making more enemies in business than the most liberal of democrat presidents could ever do. That's impressive.
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Okay this post reeks of not understanding basic accounting. Bringing back cash doesn’t affect profits for firms. The earnings were already earned. Having money over seas and bringing it on shore does not increase your profits, it just frees it up for investment (or giving to shareholders).
Also cutting R&D does not change profits in the short term. Any amount of R&D doesn’t change profits in the short term (either less or more). R&D is treated as an asset and depreciates over time (which does affect profits) but that’s clearly not what you’re saying here.
The rest of your post I’m not arguing with but your understanding of accounting and how offshore money works is factually incorrect.
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https://www.bea.gov/news/2019/direct-investment-country-and-industry-2018
The TCJA generally eliminated taxes on dividends, or repatriated earnings, to U.S. multinationals from their foreign affiliates. Dividends of $776.5 billion in 2018 exceeded earnings for the year, which led to negative reinvestment of earnings, decreasing the investment position for the first time since 1982. Tables 3 and 4 provide information on the country and industry breakdown of dividends.
By country, nearly half of the dividends in 2018 were repatriated from affiliates in Bermuda ($231.0 billion) and the Netherlands ($138.8 billion). Ireland was the third largest source of dividends, but its value is suppressed due to confidentiality requirements. By industry, U.S. multinationals in chemical manufacturing ($209.1 billion) and computers and electronic products manufacturing ($195.9 billion) repatriated the most in 2018.
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That is an extremely simplified take of what inflation is.
Here's a fun example as to why just saying "inflation means prices go up" doesn't make sense, what happens when a group of companies conspire to raise prices simultaneously? Is that inflation or is that price fixing?
https://www.propublica.org/article/yieldstar-rent-increase-realpage-rent -
In your scenario that’s inflation caused by price fixing. You seem to be saying these things are mutually exclusive but I don’t understand why you would say that.
Presumably price fixing in one industry would have trouble causing general systemic inflation. But simultaneous greed and price fixing through many industries all at once? Sure, that would do it.
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I'm sure corporations aren't going to use this excuse to hike the prices even more, like they did with the energy crisis ...
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I suppose my point is if we put any cause of rising prices under the "inflation" umbrella, it gives people the wrong idea as to the cause. Rather then just specifying what is causing prices to rise, people just say "it's inflation."
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And who is eligible to actually vote in the election
