Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The inflation rate is 2-3 percent and as far why everything has doubled in value... its called corporate greed (got to pay those CEOs back pocket and dirty politician somehow)
I believe that energy is the most important indicator and housing is second, food third. Nothing else matters. Commodities are what allow the economy to grow, just because unnecessary items have fallen in price, the inflation rate is still high. My disposable income has decreased, so in my view that's the true measure of inflation's effects. I just wish the false inflation "core" rate would be exposed as the conspiracy it is.
1. Energy has been high.
2. Housing has spiked, but only in certain areas and it has also collapsed. Additionally....if a house payment is $1000 to buy a $200,000 but then interest rates go down so the same house starts selling for $220,000 FOR THE SAME $1000 payment.....that's not inflation.
3. Food has been stable....very low inflation....I can still buy a pack of hotdog buns at the store for $1 and a case of diet coke is $6....these aren't much higher than what I saw 10-15 years ago.
. . . . I can still buy a pack of hotdog buns at the store for $1 and a case of diet coke is $6....these aren't much higher than what I saw 10-15 years ago.
hmmmm, hot dogs and diet coke. <gag!> Now THAT sounds like a Thanksgiving Dinner.
Geeezzzz, you are a "mathguy." Clearly not a medical or biology guy.
but point 2 -- house prices going up because the time value of money (aka interest) goes lower -- OF COURSE that is EXACTLY inflation. The value of money over time goes down and the price goes up.
Come on, I am only math minor (engineering) and I know this. You are going to give folks with anything resembling an education a bad rap with this nonsense.
If the Fed really believes the economy grew at 4.9 percent this quarter, they shouldn't be cutting rates. Their fed funds rate is already negative compared to GDP and probably the real-world inflation rate as well.
If the Fed really believes the economy grew at 4.9 percent this quarter, they shouldn't be cutting rates. Their fed funds rate is already negative compared to GDP and probably the real-world inflation rate as well.
Sure, but they are obliged to lie about it all.
I mean, if some one was writing you bad checks, would you really expect them to be truly honest and tell you it was a bad check?
I have seriously talked with Federal Reserve folks. Was looking at a job there. Mostly just sport and looking on my part. They sincerely believe their role and goal is to "build support" and confidence in the dollar independent of any truth. Lie, cheat or steal, it is all good, baby.
I sort of noted that "build support" had the same intials (b.s.) as Blue Sky and BullSh1t -- their true specialty.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,761,129 times
Reputation: 3587
Inflation does not include food or energy prices because they jump around too much to be an accurate measurement of a monthly index. The real rate of inflation is quite low. While you might notice that some things do go up, often people fail to notice what is going down to offset. Gasoline might go up by $1 a gallon but your grocery bill at Wal*Mart is falling by the same rate. While copper goes up, big screen TV sets are coming down.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
16,259 posts, read 24,761,129 times
Reputation: 3587
The thing that scares me kind of is that Bernanke appears far less hawkish on inflation than Greenspan was. Many people who are in the workforce today do not recall the nasty inflation of the 70s nor the fact it took a very nasty long recession in 81-82 to ring inflation out of our economy. Since then, the Fed's number one priority has been to keep inflation in check and they have which is why we have had no significant economic recessions since 82. That is a remarkable run! But Ben seems to be more anxious to please Wall Street than he is to keep inflation under control. I don't think we want to go through that again. It was painful!
I am just baffled why we let the whole monetary system rest on the words of one man. Also would like to know who really makes decisions as to Fed policies. Wouldn't it just be a lot better to eliminate the Federal Reserve and come up with a better monetary system? After all they did cause the Great Depression and every other bubble and crash since 1913.
I have noticed that my paycheck does not buy as much as it did five years ago. My raises have not kept up with inflation by about 5% a year. All the Federal economic numbers are bogus. You cannot put ANY faith in unemployment, inflation, national debt or any other statistics put out by the government. Keep track of your expenses and figure out the cost of living numbers for yourself. Mine are about a 9% inflation over the last 8 years. I am living more frugally than I did.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
