Posted on 06/02/2022 2:40:54 PM PDT by American Number 181269513
BlackRock Inc. Chief Executive Officer Larry Fink said that investors may be underestimating the potential for a spike in inflation.
“Most people haven’t had a forty-plus year career, and they’ve only seen declining inflation over the last 30-plus years,” Fink said at a virtual event hosted by Deutsche Bank AG on Wednesday. “So this is going to be a pretty big shock.”
Concern about higher inflation has already seeped into U.S. markets with the cost of goods including lumber and steel rising this year. Fink began his career at First Boston Corp. in 1976, in a period of elevated inflation. The U.S. Consumer Price Index touched a high of 14.8% in March 1980.
Fink, who now runs the world’s biggest asset manager, added that central banks may have to reassess their policies if higher prices become a concern. The Federal Reserve has committed to keep rates near zero in the near term and has indicated it will tolerate inflation above its 2% target to make up for the period where it dipped below that level.
If the Fed were to reconsider that, it could seem discordant with separate fiscal stimulus, Fink said. President Joe Biden has proposed additional measures to stimulate the U.S. economy, including a $1.7 trillion infrastructure spending plan.
“That would be pretty odd, raising interest rates at the same time we do this giant fiscal stimulus,” Fink said.
Prices may also rise as companies adapt to the realities of climate change, he said. New York-based BlackRock has advocated for companies disclosing how they plan to adapt to a net zero greenhouse gas emissions economy by 2050.
“If our solution is entirely just to get a green world, we’re going to have much higher inflation,...
(Excerpt) Read more at thinkadvisor.com ...
“big shock”
No schiff!!!
70s stagflation/malaise is nothing compared to what the Left has on the drawing board.
The fundamental transformation of America continues.
Hail Hydra.
Until mortgage rates hit 15%-20%, the pain will only get worse.
“That would be pretty odd, raising interest rates at the same time we do this giant fiscal stimulus,” Fink said.
—
“You know what we need to cure this hangover? A larger martini glass.”
I was going to treat myself to a kind of deluxe hamburger you can get in my town that used to cost about 12 bucks, all In. I had not been there in, I guess, 2 years. I stopped at the front of the restaurant and looked at the menu and that same Burger was $18.45.
Sorry, I can’t pay $20 (w/tax) for a frickin’ hamburger. Can’t do it. Just can’t.
“Most people haven’t had a forty-plus year career, and they’ve only seen declining inflation over the last 30-plus years.”
Huh? I’ve never seen “declining inflation” for my entire life. Well I guess if you mean “there was still inflation every year but not as much as in the 70s” you could say it declined.
The Utility I work for is considering sending out a warning to our customers about the price of Natural Gas heating for next Winter.
Exactly one year later.
Master of the obvious!
“The Utility I work for is considering sending out a warning to our customers about the price of Natural Gas heating for next Winter.”
Summit Natural Gas in Southern Maine is proposing a 200% (not a typo) rate increase over the next 7 years. Initially, they wanted to do it over the next 3 years, but even the moronic leftists up here took issue with that. Supposedly, there’s a lot of pressure on the PUC (Public Utilities Commission....we’re from the government, and we’re here to help) to shoot it down. We’ll see. Thankfully, that’s in the other end of the state, and doesn’t affect me. (At least until Comrade Mills starts subsidizing the industry when people can no longer afford to heat their homes).
Check out this old Jimmy Carter speech.
https://www.americanrhetoric.com/speeches/jimmycartercrisisofconfidence.htm
It includes this gem:
“I’m asking Congress to mandate, to require as a matter of law, that our nation’s utility companies cut their massive use of oil by fifty percent within the next decade and switch to other fuels, especially coal, our most abundant energy source.”
and this:
“We will protect our environment. But when this nation critically needs a refinery or a pipeline, we will build it.”
The current Democratic Party policy is no coal and no building of refineries and pipelines.
If you think that’s problematic, go to climatepresident.org and click on “The Ten Actions”. It’s a list of ten “model executive orders” that was given to “Brandon” prior to his inauguration. Scroll down/start with number 10, work your way back up to one, and let me know if anything looks familiar. /sarc
It’s sponsored by (obviously) a leftist/tree hugging outfit whose name escapes me. I have it written down out in the garage, and will post it shortly, after my after dinner cig. ;)
“It’s sponsored by (obviously) a leftist/tree hugging outfit whose name escapes me. I have it written down out in the garage, and will post it shortly, after my after dinner cig. ;)”
Ahh...yes. “The Center for Biological Diversity”, and their paper is entitled “10 Essential Climate Actions Biden Can Take Without Congress”. They have a list of some 500+ organizations that have donated to their cause.
I AM STILL WAITING TO FIND OUT WHAT AIRLINES WILL FLY ON.
Blackrock’s Brian Deese runs the economy out of the oval office. Everything woke, ruin fossil fuels and production. The guy has no business being anywhere near government policy.
Well duh
Captain Obvious
“ https://nypost.com/2022/06/01/jpmorgan-ceo-jamie-dimon-warns-an-economic-hurricane-is-coming/”
“It’s a hurricane. Right now, it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle this,” Dimon said during a conference sponsored by AllianceBernstein, according to Bloomberg.
That hurricane is right out there, down the road, coming our way,” he added. “We just don’t know if it’s a minor one or Superstorm Sandy or Andrew or something like that. You better brace yourself.”
“ The Federal Reserve is set to begin shedding its nearly $9 trillion in bond holdings this month in a process known as “quantitative tightening.” Central bank officials are also expected to enact another half-percentage point interest rate at their meeting later this month.”
“JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet,” Dimon added.”
As will all of us worth less than a billion dollars……
deliberately done while we sit in A VAT OF WATER ON SLOW BOIL
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