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Old 09-19-2011, 04:39 AM
Location: The Twilight Zone
773 posts, read 505,932 times
Reputation: 363


Originally Posted by WilliamSmyth View Post
The numbers and the information is readily available to anyone who wants to know.
Yes, but people do not do the research. They simply take the number the government puts out there without the food and gas included and act like it is gospel.

Old 09-19-2011, 08:27 AM
Location: Sierra Vista, AZ
17,522 posts, read 24,786,736 times
Reputation: 9981
Originally Posted by plwhit View Post
Under obama hyper-inflation is not around the corner, light-speed inflation is...
as evidenced by.................??
Old 09-19-2011, 08:48 AM
Location: Chandler, AZ
5,800 posts, read 6,593,349 times
Reputation: 3151
It's already here, thanks to exploding prices for gasoline, most commodities, and anything with corn in it thanks to his beyond-idiotic subsidies for ethanol.
Old 09-19-2011, 08:52 AM
Location: Londonderry, NH
41,458 posts, read 60,007,217 times
Reputation: 24868
So wages should be indexed to inflation to negate the damage done to the buyers that benefits the owners.
Old 09-19-2011, 03:13 PM
Location: Sierra Vista, AZ
17,522 posts, read 24,786,736 times
Reputation: 9981
Originally Posted by GregW View Post
So wages should be indexed to inflation to negate the damage done to the buyers that benefits the owners.
Wow, talk about Socialism, indexing wages to inflation.
What about Price controls
Old 09-19-2011, 05:05 PM
Location: Ohio
24,620 posts, read 19,277,169 times
Reputation: 21752
Originally Posted by Winter_Sucks View Post
Conservatives keep talking about inflation and how hyper-inflation is around the corner.
I'm an ultra-conservative and you've never heard me say that. You'll definitely experience Cost Inflation for any number of reasons.

As I said on another post, I expected the corn harvest to be poor and corn to go over $7/bushel, but I had no idea the corn harvest was that freaking bad and would hit $7.50/bushel.

That is Cost Inflation. Everything related to corn will increase in price, and that includes all products made from corn, which is about 90% of the garbage labeled as "food" that you people stuff your faces with, and that is the high fructose corn syrup in all of your "drinks" and of course ethanol for you gasoline.

Real Inflation is running about 2.5%-3% like it always does.

I do expect Real Inflation to rise about 2021-2022 or so for a slap in the face and then disappear and then come back in full force in 2023 for about 12-15 years at a rate that was worse than post-WW I Real Inflation but not nearly as bad as the post-[1st] Great Depression [of the 19th Century]/Civil War period.

I figure 35%-45%.

There's a coefficient that you have to calculate which tells you how much money can be absorbed into a given economy, then you multiply that by some other factors, including the M1/M2/M3 and the GDP etc.

The US could probably print $9 TRILLION to $12 TRILLION without any effect, and I assume they will through the end of the decade because your economy is going nowhere very slowly.

The problem is your coefficient can change, so for every $1 you print $0.90 is being absorbed by the economy, but $0.10 isn't and that $0.10 becomes your Real Inflation Rate. There are a lot of reasons why it can change. An oil burse, where Euros or Rubles are accepted or a basket currency instead of only US Dollars would have a negative impact, because it would decrease demand for US Dollars world-wide.

You could invade more countries and take over their governments and force them to use US Dollars. That would help.

Originally Posted by Winter_Sucks View Post
I'm not seeing it and this is even when the Federal Reserve is keeping a cheap money strategy as of late. The economy as a whole is still de-leveraging.
That's because the Superior Intellect can't grasp the fact that the US is not the only country that uses US Dollars. A lot of trade is conducted solely in US Dollars (under coercion by the US).

The reason you didn't have post-War Real Inflation after WW II is because of the Bretton Woods Agreement, which made the US Dollar the de facto international reserve currency and the de facto international trade currency.

All of that money the US printed during the Great Depression and WW II was sucked off the market by dozens of countries, foreign banks and foreign corporations (and foreign investors).

That's why you didn't have Real Inflation.

Originally Posted by Heritage Member View Post
I almost hate to do this to you, but you obviously need a little educatin'.
  • Gas and food prices are purposefully taken out of the equation for inflation, yet those are the two things that have the most impact on people. This makes the "official" inflation rate almost meaningless. One needs to factor in gas and food, for the real effect of inflation.
They should be removed since those are commodities and not currency.

That is Cost Inflation. Cost Inflation and Real Inflation are not the same thing. Cost Inflation and Real Inflation do not have the same causal factors.

Because they do not have the same causal factors, the solutions to each are different.

If you want the price of gasoline to go down, then stop consuming gasoline. It isn't rocket science and it doesn't require a "you-Harvard" PhD.

[quote=Heritage Member;20936733]
  • Corn is up 45 percent the last three months. We haven't seen cotton prices this high since after the Civil War. Soybeans are up. Oil is up. Metals are up. So are coffee and cocoa. In this era of massive liquidity, everything is up. News Headlines
  • Food, gas, rent and clothing prices all rose in August; unemployment claims hit 3-month high. The latest government data show that inflationary pressures and a depressed job market are hurting an economy that barely grew in the first half of the year. Inflation squeezing consumers in weak economy - Yahoo! Finance
  • Oh, and how close is gold to $800/oz when people were saying it was crazy to buy it?[quote]
Those are commodities, not currency.

Those are examples of Cost Inflation, not Real Inflation. Cost Inflation occurs when demand is high and supply decreases.

The Federal Reserve is not responsible for cotton prices, unless you intend to claim that the Federal Reserve controls the weather.

So are you? Claiming that the Federal Reserve controls the weather?

International Grains Council has lowered U.S. corn exports forecast for 2011-12 by 8.2% to 44.5 million tons and output by 4% to 325 million tons.Around 0626 GMT, the most active CBOT December corn and wheat futures contracts were trading at $7.5075/bushel and $7.5050/bushel, respectively.
Corn, Market Analysis, Agricultural Markets | Agriculture.com

You can't blame Obama, or the Federal Reserve or the Tea Party or the Republicans or Willie Nelson (or Willie Horton for that matter).

Maybe you can blame Dukakis.

It's a simple issue of supply and demand. Iron production drops, demand remains constant or increases, and iron prices rise. Cotton, wheat, corn and other food crops have bad harvests due to weather and insect infestation, demand remains constant or increases, the prices for those commodities rises.

It is not a conspiracy.
Old 09-19-2011, 06:33 PM
13,015 posts, read 19,009,070 times
Reputation: 9268
During times of inflation, investment in property increases. Seen any of that lately? Interest rates ride on top of inflation. In fact the treasury yield keeps dropping. This is inflation?
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