virginiakid
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Inflation Gathers Steam, CPI up.4%
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AJ Antimony
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Inflation has been gathering steam since 1913.
slamhead
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The CPI is no longer relevant. They now play with the CPI to suit their needs. It is more like 12% or higher. It used to be the CPI measured a basket of exact goods from one period to the next. They now fudge the numbers with a standard of living reduction. In bad times you are expected to eat hamburger instead of steak. They also factor in a hedonistic index. For instance if you bought the same model car that you did last year, this years model comes with more standard extras than last years model, therefore you are getting more for your dollar.
The CPI cannot be trusted anymore as it is just another government tool to dumb down the citizens.
The CPI cannot be trusted anymore as it is just another government tool to dumb down the citizens.
Publishing the MSM's view
of inflation really doesn't do anyone any good. It is a control mechanism.
http://www.shadowstats.com/alternate_data
The link above gets you closer to the 7% to 9% reality.
Listen to Dr. Paul....currency destruction is not about .4%.
Research...the truth will set you free.
BTW...stop watching the news on TV.
The people who own the news own you...until you stop listening to them.
of inflation really doesn't do anyone any good. It is a control mechanism.
http://www.shadowstats.com/alternate_data
The link above gets you closer to the 7% to 9% reality.
Listen to Dr. Paul....currency destruction is not about .4%.
Research...the truth will set you free.
BTW...stop watching the news on TV.
The people who own the news own you...until you stop listening to them.
jonahtrainer
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Money and currency is only good for what it will buy in tangible assets. Therefore, a fairly weighted commodity index based on use in the global economy is perhaps the best gauge for 'inflation.' Here is a chart of such an index.
Of course, this at the same time as massive asset price deflation. What a wicked combination when these two finally meet each other!
Of course, this at the same time as massive asset price deflation. What a wicked combination when these two finally meet each other!
danberkeley
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Sorry dude. The government's CPI does not include food and energy (two of the most necessary goods).
weatherbill
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their numbers are pure bullshit! Inflation si much higher than they will admit.....they add into some prices the cost of cheap chinese goods.....it's deceitful trickery, like alot other things they pull..... media was bought up by the powers that back in the 1930s for pennies on the dollar by when the stock market crashed in 1929..... no brainer.....follow the money trail
Acala
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Hahahahaha
Not only do they not include energy prices in the "official" inflation rate, they SUBTRACT increases in energy prices on the grounds that increases in energy prices will be reflected in the price of other goods and services and since energy prices are not supposed to be included in the inflation rate, then the price increases due to energy price increases ALSO should not be included. Hahahahahaha! So increases in energy prices can actually result in a REDUCED official inflation rate!
I am so going to enjoy seeing those lying sacks of crap try to explain hyper inflation. It is going to be like the Iraqi minister of information saying that American troops are nowhere near Baghdad when you can see the bombs going off in the background and hear the gunfire!!!!
Invest in wheelbarrows. People are going to need them to carry their cash to the grocery store.
Not only do they not include energy prices in the "official" inflation rate, they SUBTRACT increases in energy prices on the grounds that increases in energy prices will be reflected in the price of other goods and services and since energy prices are not supposed to be included in the inflation rate, then the price increases due to energy price increases ALSO should not be included. Hahahahahaha! So increases in energy prices can actually result in a REDUCED official inflation rate!
I am so going to enjoy seeing those lying sacks of crap try to explain hyper inflation. It is going to be like the Iraqi minister of information saying that American troops are nowhere near Baghdad when you can see the bombs going off in the background and hear the gunfire!!!!
Invest in wheelbarrows. People are going to need them to carry their cash to the grocery store.
Then look at the other number, the one that doesn't say "Less Food and Energy"?
I haven't seen a tripling in general pricing in less than a decade, so I'm going to have to disagree with you there.
Primbs
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I have noticed major price increases at some fast food places.
In the Washington DC area, parking prices have been going up. I have seen some prices go up from 5 to 7 dollars or 8 to 12 dollars and some daily parking rates are as high as 25 dollars.
Percentage wise, those are some very expensive increases. A 50% increase in less than a year is very expensive.
In the Washington DC area, parking prices have been going up. I have seen some prices go up from 5 to 7 dollars or 8 to 12 dollars and some daily parking rates are as high as 25 dollars.
Percentage wise, those are some very expensive increases. A 50% increase in less than a year is very expensive.
Acala
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Prices not triple
"I haven't seen a tripling in general pricing in less than a decade, so I'm going to have to disagree with you there."
Inflation hasn't been at 12% annually for ten years. But it has been over 5 for several years and is spiking for the last two.
"I haven't seen a tripling in general pricing in less than a decade, so I'm going to have to disagree with you there."
Inflation hasn't been at 12% annually for ten years. But it has been over 5 for several years and is spiking for the last two.
obstruksion
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Money and currency is only good for what it will buy in tangible assets. Therefore, a fairly weighted commodity index based on use in the global economy is perhaps the best gauge for 'inflation.' Here is a chart of such an index.
Of course, this at the same time as massive asset price deflation. What a wicked combination when these two finally meet each other!
You can't compare these graphs by looking at the curves. One is linear and the other is logarithmic.
jclay2
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It is very interesting how in the last two weeks, the stock market has suddenly picked up the realization that inflation is something to be worried about. I am sure that the Fed will cut again, but it won't be supported like previous rate cuts have been.
WilliamC
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Money and currency is only good for what it will buy in tangible assets. Therefore, a fairly weighted commodity index based on use in the global economy is perhaps the best gauge for 'inflation.' Here is a chart of such an index.
Of course, this at the same time as massive asset price deflation. What a wicked combination when these two finally meet each other!
Make sure an note that the graph for the US dollar is 1 to 1 while the graph for Germany is logarithmic.
We're not quite yet at hyperinflation, although things aren't looking great, but a direct comparison of the two graphs is a little misleading.
edit: for the US dollar graph since 1999 there has only been a ~3.5 fold increase in the index, which wouldn't even be a bump in the corresponding graph of Germany's hyperinflation.
Acala
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Good point
We are still a ways away from hyper inflation. The Fed could rein it in. We would have a massive depression. And it would mean that the government would have to default on the debt AND renege on the promised payouts of a thousand government programs because there will not be any money with which to pay. Government revenue will plummet, banks will fail, unemployment and foreclosures will skyrocket. It will be an extremely bitter pill to swallow. Think the poiticians and bankers are willing to swallow it? I don't.
I think it is more likely that the government and the Fed will first try more credit expansion, but that will fail when the rising inflation rate becomes clear and makes lending at cut rates untenable. Then they will try borrowing money to cover expenses, but that will fail because people will stop lending. Then they will resort to the presses. At some point, as the value of the dollar drops, there will be a world-wide flight from the dollar to avoid the devaluation. THEN it will be too late. Inflation will be out of control. They will HAVE to print money just to keep the lights on. Then the dollar collapses. At that point, anything is possible. Martial law, a new fiat currency, perhaps even a metal-backed currency - if we have educated the people sufficiently.
The Weimar Germans were able to replace the hyper-inflated Mark with another fiat currency - but only by claiming that it was backed by claims against real assets. A fraud, but one the people were willing to accept. It worked. But not before everybody's savings had been lost and the economy had been decimated.
We are still a ways away from hyper inflation. The Fed could rein it in. We would have a massive depression. And it would mean that the government would have to default on the debt AND renege on the promised payouts of a thousand government programs because there will not be any money with which to pay. Government revenue will plummet, banks will fail, unemployment and foreclosures will skyrocket. It will be an extremely bitter pill to swallow. Think the poiticians and bankers are willing to swallow it? I don't.
I think it is more likely that the government and the Fed will first try more credit expansion, but that will fail when the rising inflation rate becomes clear and makes lending at cut rates untenable. Then they will try borrowing money to cover expenses, but that will fail because people will stop lending. Then they will resort to the presses. At some point, as the value of the dollar drops, there will be a world-wide flight from the dollar to avoid the devaluation. THEN it will be too late. Inflation will be out of control. They will HAVE to print money just to keep the lights on. Then the dollar collapses. At that point, anything is possible. Martial law, a new fiat currency, perhaps even a metal-backed currency - if we have educated the people sufficiently.
The Weimar Germans were able to replace the hyper-inflated Mark with another fiat currency - but only by claiming that it was backed by claims against real assets. A fraud, but one the people were willing to accept. It worked. But not before everybody's savings had been lost and the economy had been decimated.
The person I was responding to was probably referring to this graph. It's not 12%, but 10ish.
Over the past decade, their claimed CPI leads to a 250% pricing differential, while the government issued CPI leads to a value of 140%. (just eyeballing the chart)
I don't know how old forum members here are, but I remember 1998 rather clearly. I don't see a 2.5x increase in pricing. 1.4x is debatable as well, but it's much closer to what it feels like.
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