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Inflation is near zero right now, it has not been this low in decades.
Quote:
Originally Posted by jimhcom
Five year old used SUV's are priced at $15-20K, a dinner out for a family of four will run $75-100, insurance rates are up, utility bills are up, taxes are increasing, auto registrations are increasing, schools are now charging for bus service, and the list goes on..
1.) The price of SUV is irrelevant, just in case you were not aware they are not the only vehicle you can purchase. A brand new Toyota Yaris is around $12k.
2.) A family of four can easily dine on much less than $75~$100, restaurants are currently hurting and offering all sorts of specials. I just used a coupon for $15 an order of $25 or more the other night, total including tip for 2 people was $15. Almost every restaurant around here is over some sort of special....
Also, just in case you were not aware transferring public spending to private spending is not inflation. If the public services were not cut, taxes would have to be increased. None of this has anything to do with quantitative easing, rather poor fiscal management.
Inflation is near zero right now, it has not been this low in decades.
1.) The price of SUV is irrelevant, just in case you were not aware they are not the only vehicle you can purchase. A brand new Toyota Yaris is around $12k.
2.) A family of four can easily dine on much less than $75~$100, restaurants are currently hurting and offering all sorts of specials. I just used a coupon for $15 an order of $25 or more the other night, total including tip for 2 people was $15. Almost every restaurant around here is over some sort of special....
Also, just in case you were not aware transferring public spending to private spending is not inflation. If the public services were not cut, taxes would have to be increased. None of this has anything to do with quantitative easing, rather poor fiscal management.
What the government statistics say is what is irrelevant. The people know there is inflation; it is not an issue worthy of debate. QE causes inflation by eroding confidence in the dollar. Confidence in the dollar is so low now the FED must purchase the majority of the Treasury auctions. Countries world wide are reducing their dollar holdings, while at the same time looking for alternatives to the dollar as the reserve currency. Every time QE is implemented the price of gold in dollars spikes. Taxes and services are not an either/or situation. We are getting both, fewer services and more taxes. QE is just a ponsie scheme to benefit the banks at the expense of the people.
What the government statistics say is what is irrelevant. The people know there is inflation; it is not an issue worthy of debate.
way to try and sweep it under the rug... BUT
i believe it is an issue worthy of debate. i don't believe CPI, but I don't just "take your word for it" either. some things are rising in price and others are falling.
i believe it is an issue worthy of debate. i don't believe CPI, but I don't just "take your word for it" either. some things are rising in price and others are falling.
There are some things that are obviously going up, and others in which the inflation is not so obvious. Reduction in quantity and quality are two ways in which inflation is hidden. Taxes and fees are also ways in which the consumer is paying more for less. When hotel costs are calculated they do not include parking fees which are common now, but were rare 5 yrs. ago. They also do not figure the room tax, but when you pay your bill the money still comes out of your pocket. When they figure the cost of a can of corn, they do not consider that 12oz can you used to buy is now 10.5oz. It also does not take into consideration products you are purchasing are by and large made cheaper and will not give the same service as the products you are replacing. Anytime you are getting less for your money, it is inflation.
What the government statistics say is what is irrelevant. The people know there is inflation; it is not an issue worthy of debate.
Yes because you want to believe there is high inflation, the issue is not worthy of debate. This would be funny...if you weren't being serious!
Its funny, you provide no real evidence of inflation yet demand that it's high.
Quote:
Originally Posted by jimhcom
QE causes inflation by eroding confidence in the dollar. Confidence in the dollar is so low now the FED must purchase the majority of the Treasury auctions.
QE can cause inflation, but it does not necessarily lead to inflation. Just look at Japan. Your second sentence is a complete lie, the FED only owns around $700 billion in treasuries which is no where near the majority.
Quote:
Originally Posted by jimhcom
Countries world wide are reducing their dollar holdings, while at the same time looking for alternatives to the dollar as the reserve currency.
Another lie, foreign treasury holdings have been holding their ground:
There are some things that are obviously going up, and others in which the inflation is not so obvious. Reduction in quantity and quality are two ways in which inflation is hidden.
Government inflation figures take quantity/quality reductions into consideration, CPI is not just a simplistic appraisal of prices its a well researched measure of aggregate costs. But if you have other measure that you think better captions actual aggregate prices why don't you cite it?
Quote:
Originally Posted by jimhcom
Taxes and fees are also ways in which the consumer is paying more for less.
Taxes are not inflation.
Again, everything you are saying is based on lies. Government measures of inflation take the things you are talking about into consideration.
What the government statistics say is what is irrelevant. The people know there is inflation; it is not an issue worthy of debate. QE causes inflation by eroding confidence in the dollar. Confidence in the dollar is so low now the FED must purchase the majority of the Treasury auctions. Countries world wide are reducing their dollar holdings, while at the same time looking for alternatives to the dollar as the reserve currency. Every time QE is implemented the price of gold in dollars spikes. Taxes and services are not an either/or situation. We are getting both, fewer services and more taxes. QE is just a ponsie scheme to benefit the banks at the expense of the people.
Hi jimhcom,
The Fed purchases bond to add to the money supply quite purposely.
he Fed buys securities when it wants to increase the flow of money and credit, and sells securities when it wants to reduce the flow.
This is not to say I endorse the system. They should raise interest rates and lower taxes.; or in reality, toss overboard this system of credit economy where money is created by commercial banks though loans.
he Fed buys securities when it wants to increase the flow of money and credit, and sells securities when it wants to reduce the flow.
This is not to say I endorse the system. They should raise interest rates and lower taxes.; or in reality, toss overboard this system of credit economy where money is created by commercial banks though loans.
Agreed, but what is happening with the money supply, and what effect is it having on working people. The rich are getting richer, and the working people are loosing their shirts. There are some who will defend what is happening and try to tell people everything is being done in the people’s interest, but if that is so, why is the outcome to the contrary? Because they are lying and have a vested interest in seeing things continue as they are.
There are people who are prospering off the suffering of working people, there are millionaires made everyday. In 2006 I wrote here on CD about what was happening in the real estate market only to be attacked by the real estate professionals, and lenders who really did not care about the people who were going to loose their homes, they just wanted to make as much money as they could. They were very articulate and could fabricate an argument worthy of a Wall St lawyer. But they were lying. Some listened to me and others who were warning what was coming and got out in time, some did not. Even after the real estate market went into decline there were unscrupulous people encouraging people to buy the dip and lying about the market fundamentals. The same is happening now, only it is with monetary policy. There are some who are profiting from the ever increasing government deficit spending and QE, but it is not you and me. Follow the money; it always leads to the truth.
Alright, compared to 10 years or go what of your important/major expenses has gone down. Housing is still higher than 2000, food is more expensive, and energy costs are more. You need those 3 to live. That isn't counting the expense of getting an education or trying to travel anywhere will cost you a lot more.
I took a 2 week trip in 2003 and with food, hotel, travel, and leisure activities cost me about $3,600. If I did that same trip now it would cost me at least $5,000.
Alright, compared to 10 years or go what of your important/major expenses has gone down. Housing is still higher than 2000, food is more expensive, and energy costs are more. You need those 3 to live. That isn't counting the expense of getting an education or trying to travel anywhere will cost you a lot more.
I took a 2 week trip in 2003 and with food, hotel, travel, and leisure activities cost me about $3,600. If I did that same trip now it would cost me at least $5,000.
Hi LeavingMA,
The only thing you missed was that inflation is built into this system. Credit based systems absolutely must increase inflation by at least 2-3% or you end up with the threat of full stops. Too many people think its a game of sea shells rather than a system built to increase debt and inflation perpetually.
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