[quote=kev374]unless wages go up how can there be inflation? Sure, commodities can go up because there is some fixed demand (people have to buy food, pay for gas, heating etc.) but any inflation in commodities will be at the expense of other asset classes I think.
Wages are definitely not going up but are dropping. If people don’t have more money I don’t see how there can be inflation regardless of how much Uncle Ben prints.[/quote]
You have got to be kidding?…..It is called falling living standards
!
I will explain it to you.
Your wages stagnate, the prices of the things you consume go up so you buy less. Does that mean prices on SOMETHING must fall because you consume less overall? NO!!!!! There are 2 billion people rapidly demanding resources as never before!! If you can’t afford to fill your gas tank as often as you did, it doesn’t matter, others will use that oil.. If you can’t buy that beef, someone else in Asia will.
Besides that argument, ever heard of Zimbabwe? There unemployment is super high yet they have massive inflation. The only difference is we have a world reserve currency, they don’t. Really the only difference between zimbabwe and the U.S. is in the faith of the creditors.
Lastly, I know people could care less but if you use the inflation formula from the Clinton Era our inflation rate today is now 5%, and if you use the Federal inflation formula from the Carter era inflation today is running around 8%.
People like to dismiss the old formulas saying…”Well if they don’t use it anymore, it must have been flawed and the formula they use today must be more realistic”.
The fact is the Federal Government has trillions of reasons why it benefits from highly manipulated low inflation rate. You would only be fooling yourself to think there is not a motive to understate.
Why else is everything that is limited in supply triple the 1990 price while official inflation is only up 50%?
From housing to gold, silver, medical care, food and oil, everything is up 300% except the inflation rate……and oh yes, that plastic garbage can from China was 15.00 in 1990 and is now 10.00. B.F.D.!
