Inflation – Has it arrived?

[socrattt]

[quote=CA renter]One way or another, I’m sure the one thing we can all agree on is that these are some very interesting times…[/quote]

I beg to differ. This was exactly what my economics teacher taught me in college. We learned all about graphing manipulation characteristics and how emotions weigh heavier on economies than the actual numbers themselves.

We’re screwed! (But Brian would argue that point)

Rich, thanks for your input here, it’s much appreciated seeing you give your perspective!!

[briansd1]

[quote=socrattt]We’re screwed! (But Brian would argue that point)
[/quote]

It depends on your perspective.

We’ve always been screwed one way or another. But we always made it through.

The lesson of Japan, is that we should never let deflation take hold because deflation kills economic growth.

We can however have economic growth without real house price appreciation.

[briansd1]

[quote=socrattt]We’re screwed! (But Brian would argue that point)
[/quote]

It depends on your perspective.

We’ve always been screwed one way or another. But we always made it through.

The lesson of Japan, is that we should never let deflation take hold because deflation kills economic growth.

We can however have economic growth without real house price appreciation.

[briansd1]

[quote=socrattt]We’re screwed! (But Brian would argue that point)
[/quote]

It depends on your perspective.

We’ve always been screwed one way or another. But we always made it through.

The lesson of Japan, is that we should never let deflation take hold because deflation kills economic growth.

We can however have economic growth without real house price appreciation.

[briansd1]

[quote=socrattt]We’re screwed! (But Brian would argue that point)
[/quote]

It depends on your perspective.

We’ve always been screwed one way or another. But we always made it through.

The lesson of Japan, is that we should never let deflation take hold because deflation kills economic growth.

We can however have economic growth without real house price appreciation.

[briansd1]

[quote=socrattt]We’re screwed! (But Brian would argue that point)
[/quote]

It depends on your perspective.

We’ve always been screwed one way or another. But we always made it through.

The lesson of Japan, is that we should never let deflation take hold because deflation kills economic growth.

We can however have economic growth without real house price appreciation.

[Arraya]

http://theautomaticearth.blogspot.com/
The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price “inflation” is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.

snip

The connection between the Fed, commodity price increases and social turmoil may have entered the mainstream dialogue, but it is exactly when the mainstream recognizes a financial trend that it soon reverses. Investors amassed on one side of a trade will be forced to quickly shift to the other side, and the “inflation” exported by the Fed will be revealed to be just another speculative romp crafted for the benefit of those who made out like bandits during the last one. As The Automatic Earth has repeatedly stressed, however, a deflationary price collapse will make necessary commodities even less affordable for the average person, due to a dramatic reduction in private revenues and public benefits. So while the superficial financial trend may change, the social turmoil will continue on, and next time Egypt’s revolution may not be so “peaceful”.

[Arraya]

http://theautomaticearth.blogspot.com/
The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price “inflation” is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.

snip

The connection between the Fed, commodity price increases and social turmoil may have entered the mainstream dialogue, but it is exactly when the mainstream recognizes a financial trend that it soon reverses. Investors amassed on one side of a trade will be forced to quickly shift to the other side, and the “inflation” exported by the Fed will be revealed to be just another speculative romp crafted for the benefit of those who made out like bandits during the last one. As The Automatic Earth has repeatedly stressed, however, a deflationary price collapse will make necessary commodities even less affordable for the average person, due to a dramatic reduction in private revenues and public benefits. So while the superficial financial trend may change, the social turmoil will continue on, and next time Egypt’s revolution may not be so “peaceful”.

[Arraya]

http://theautomaticearth.blogspot.com/
The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price “inflation” is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.

snip

The connection between the Fed, commodity price increases and social turmoil may have entered the mainstream dialogue, but it is exactly when the mainstream recognizes a financial trend that it soon reverses. Investors amassed on one side of a trade will be forced to quickly shift to the other side, and the “inflation” exported by the Fed will be revealed to be just another speculative romp crafted for the benefit of those who made out like bandits during the last one. As The Automatic Earth has repeatedly stressed, however, a deflationary price collapse will make necessary commodities even less affordable for the average person, due to a dramatic reduction in private revenues and public benefits. So while the superficial financial trend may change, the social turmoil will continue on, and next time Egypt’s revolution may not be so “peaceful”.

[Arraya]

http://theautomaticearth.blogspot.com/
The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price “inflation” is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.

snip

The connection between the Fed, commodity price increases and social turmoil may have entered the mainstream dialogue, but it is exactly when the mainstream recognizes a financial trend that it soon reverses. Investors amassed on one side of a trade will be forced to quickly shift to the other side, and the “inflation” exported by the Fed will be revealed to be just another speculative romp crafted for the benefit of those who made out like bandits during the last one. As The Automatic Earth has repeatedly stressed, however, a deflationary price collapse will make necessary commodities even less affordable for the average person, due to a dramatic reduction in private revenues and public benefits. So while the superficial financial trend may change, the social turmoil will continue on, and next time Egypt’s revolution may not be so “peaceful”.

[Arraya]

http://theautomaticearth.blogspot.com/
The Federal Reserve has indeed printed money and helped drive up commodity prices throughout the global economy, but none of this price “inflation” is achieved without its trusty sidekicks, the major investment banks (hedge funds), and their weapon of choice, leverage.

snip

The connection between the Fed, commodity price increases and social turmoil may have entered the mainstream dialogue, but it is exactly when the mainstream recognizes a financial trend that it soon reverses. Investors amassed on one side of a trade will be forced to quickly shift to the other side, and the “inflation” exported by the Fed will be revealed to be just another speculative romp crafted for the benefit of those who made out like bandits during the last one. As The Automatic Earth has repeatedly stressed, however, a deflationary price collapse will make necessary commodities even less affordable for the average person, due to a dramatic reduction in private revenues and public benefits. So while the superficial financial trend may change, the social turmoil will continue on, and next time Egypt’s revolution may not be so “peaceful”.

[jeeman]

I am making the prediction of biflation. Basically a reversal on what has happened in the last 15-20 years.

The percentage of income devoted to housing went from 25% to 40%, while the percentage of income devoted to food and energy went down.

The last few years, the housing value has gone down while food and energy has gone up. Other goods have stayed flat, or have gone down a little bit.

What this means is that we are in stagflation (as Rich has predicted), while our standard of living decreases. Cheap energy has increased our standard of living, allowing for more money to flow into other assets, but this gravy train has come to an end with the rise of China, Obama’s drilling moratorium and his war on oil, and the fact that solar energy production isn’t cheap *YET*.

Once solar technology reaches its renaissance, our standard of living will rise again, but this isn’t going to be for a while. We could have done this a while ago with nuclear, but there are enough nutjobs in this country that stymied the path that France took.

Jeeman

[jeeman]

I am making the prediction of biflation. Basically a reversal on what has happened in the last 15-20 years.

The percentage of income devoted to housing went from 25% to 40%, while the percentage of income devoted to food and energy went down.

The last few years, the housing value has gone down while food and energy has gone up. Other goods have stayed flat, or have gone down a little bit.

What this means is that we are in stagflation (as Rich has predicted), while our standard of living decreases. Cheap energy has increased our standard of living, allowing for more money to flow into other assets, but this gravy train has come to an end with the rise of China, Obama’s drilling moratorium and his war on oil, and the fact that solar energy production isn’t cheap *YET*.

Once solar technology reaches its renaissance, our standard of living will rise again, but this isn’t going to be for a while. We could have done this a while ago with nuclear, but there are enough nutjobs in this country that stymied the path that France took.

Jeeman

[jeeman]

I am making the prediction of biflation. Basically a reversal on what has happened in the last 15-20 years.

The percentage of income devoted to housing went from 25% to 40%, while the percentage of income devoted to food and energy went down.

The last few years, the housing value has gone down while food and energy has gone up. Other goods have stayed flat, or have gone down a little bit.

What this means is that we are in stagflation (as Rich has predicted), while our standard of living decreases. Cheap energy has increased our standard of living, allowing for more money to flow into other assets, but this gravy train has come to an end with the rise of China, Obama’s drilling moratorium and his war on oil, and the fact that solar energy production isn’t cheap *YET*.

Once solar technology reaches its renaissance, our standard of living will rise again, but this isn’t going to be for a while. We could have done this a while ago with nuclear, but there are enough nutjobs in this country that stymied the path that France took.

Jeeman

[jeeman]

I am making the prediction of biflation. Basically a reversal on what has happened in the last 15-20 years.

The percentage of income devoted to housing went from 25% to 40%, while the percentage of income devoted to food and energy went down.

The last few years, the housing value has gone down while food and energy has gone up. Other goods have stayed flat, or have gone down a little bit.

What this means is that we are in stagflation (as Rich has predicted), while our standard of living decreases. Cheap energy has increased our standard of living, allowing for more money to flow into other assets, but this gravy train has come to an end with the rise of China, Obama’s drilling moratorium and his war on oil, and the fact that solar energy production isn’t cheap *YET*.

Once solar technology reaches its renaissance, our standard of living will rise again, but this isn’t going to be for a while. We could have done this a while ago with nuclear, but there are enough nutjobs in this country that stymied the path that France took.

Jeeman

[Author]

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