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Old 10-29-2018, 11:27 PM
 
7,350 posts, read 8,189,298 times
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Quote:
Originally Posted by C2BP View Post

The secret of inflation is that ONLY wage inflation triggers inflation - in the CPI and PPI sense of the word. But DEBT INFLATION is undeniable. And Housing, Healthcare, Education, Transportation, Food costs are all inflating.
Your claim that only wage inflation triggers inflation is a lie.
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Old 10-29-2018, 11:51 PM
 
755 posts, read 412,977 times
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Quote:
Originally Posted by EDS_ View Post
Your claim that only wage inflation triggers inflation is a lie.
No it's not. The CPI is fixed. Unless there is wage inflation, no inflation is registered. Housing, education, medical, transportation has gone through the roof. CPI did not budge. Debt should be included in the inflation gauge. Inflating debt is a sign of inflation. Because debt is money that pushes up prices. The CPI ignores it all -except wage inflation. And there has been very little of that.
Why? If salaries go up, business pays for that. If, instead, interest rates go down, consumers pay for that as debt growth.
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Old 10-30-2018, 01:00 AM
 
7,350 posts, read 8,189,298 times
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Quote:
Originally Posted by C2BP View Post
No it's not. The CPI is fixed. Unless there is wage inflation, no inflation is registered. Housing, education, medical, transportation has gone through the roof. CPI did not budge. Debt should be included in the inflation gauge. Inflating debt is a sign of inflation. Because debt is money that pushes up prices. The CPI ignores it all -except wage inflation. And there has been very little of that.
Why? If salaries go up, business pays for that. If, instead, interest rates go down, consumers pay for that as debt growth.
CPI didn't budge? We've logged inflation every month since 2000 save 11 or 12 months nearly all in '09. And CPI itself has been up every year since 1954.


https://www.usinflationcalculator.co...-1913-to-2008/
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Old 10-30-2018, 01:56 AM
 
4,857 posts, read 2,314,913 times
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Quote:
Originally Posted by C2BP View Post
No it's not. The CPI is fixed. Unless there is wage inflation, no inflation is registered. Housing, education, medical, transportation has gone through the roof. CPI did not budge.
How much has transportation gone through the roof? According to CES transportation expenditures per household was down from 2015-206, then up from 2016 to 2017 to where it's a wash over the last few years. How is this described as through the roof?

Education costs have gone up but you're greatly overestimating how much the average household spends on education since many people don't go to college, have finished college, don't have kids, don't have kids old enough to attend college, or have kids that are out of college. According to CES the average spent per household is only $1,491, or 2% of their income. That means when it rose 8% it barely impacted their rate of inflation, hell they spent more than double that on entertainment.

Housing might through the roof if you're shopping for a new house or in a hot rental market, but there are millions of Americans who are living in a house they bought with generational-low interest rates that created monthly mortgage payments far more affordable than in previous years. Housing costs are much more than median price of a house, go look at what the difference is in monthly obligation between a 7% and 4% for a 30 year fixed.

Healthcare is up too, but despite the big costs it's only about 7.4% of the expenditures for the average household, the annual increases (usually in the 6-7% range) of that part of their budget isn't something one can point to as proof a low CPI is someone cooking the books.
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Old 10-30-2018, 05:15 AM
 
65,091 posts, read 66,603,384 times
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everything to c2bp is a conspiracy . he is so ingrained in believing his own bull that there is no convincing him the world is not some giant conspiracy and everything is not the federal reserves fault or the banks . i mean he even tried to blame mental illness on the Federal reserve in a discussion about homelessness .
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Old 10-30-2018, 05:26 AM
 
Location: Northern Michigan
909 posts, read 427,553 times
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That's the beauty of OCD. You don't have to waste time reading and learning and stuff.
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Old 10-30-2018, 10:03 AM
 
7,350 posts, read 8,189,298 times
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Quote:
Originally Posted by MichiganGreg View Post
That's the beauty of OCD. You don't have to waste time reading and learning and stuff.
I got a full belly laugh from that thanks!
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Old 10-30-2018, 02:36 PM
 
11,557 posts, read 5,964,214 times
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Quote:
Originally Posted by mysticaltyger View Post
It's a long rant, but I agree with the gist of it.

I agree with the parts I agree with.


The whole point of government in a capitalist system is to use regulations and fiscal & monetary policy to dampen the inherent instability of the system. You want recessions to be mild rather than enormous crashes where people get wiped out. In my opinion, we should be in a mild recession now just like we should have been in a mild recession in 2003/2004. If you juice the economy at that point like Dubya did to avoid a recession before his reelection cycle or like Trump has done over the last 18 months, you end up with a collapse instead of a mild recession.


Do we have a depression coming? I think it depends on who is at the controls when the bottom drops out. I'm unhappy with how the money was squandered at the Great Recession but the financial industry needed to be rescued from collapse and we needed both fiscal and monetary stimulus. In 2018/2019, I have zero confidence that the right hand is at the controls. I think we're in uncharted waters.
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Old 11-01-2018, 09:23 PM
 
755 posts, read 412,977 times
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Bolton Calls National Debt ‘Economic Threat’ to U.S.

“It is a fact that when your national debt gets to the level ours is, that it constitutes an economic threat to the society,” Bolton said. “And that kind of threat ultimately has a national security consequence for it.”

https://www.bloomberg.com/news/artic...ociety-correct
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Old 11-02-2018, 03:00 AM
 
4,857 posts, read 2,314,913 times
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He's right, USA has too much debt.

Does that make your ridiculous broken record padded-cell ranting about no recovery and dead economy and we need deflation correct?

Nope.
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