yeah, home price increases based on debt increases isn’t “inflation”, it’s a bubble.
“inflation” as measured by price indexes of goods that are imported from countries with price controls is utterly retarded.
currency and population… as the population increases, the physical volume of money has to increases proportionally. otherwise, you’ll have currency inflation; less relative supply vs increased demand. at the same time, with more people comes more labor which results in wage deflation; while each dollar is worth more, you get less and less of it for a given job.
and “controlling” inflation via interest rates is senseless. inflation for who? for what? the banks still get their money, (as you know the effect increased mortgage rate has on home prices; total dollar amount for the buyer is the same, but the seller gets the shaft with deflated sale price) and everyone else pays; more expensive credit = less spending = less profit = less wages.
Like I said, If the Fed calculated inflation like they did in 1978 or 79 , then we would have the (FED) inflation rate of 1978-79 (10-15%) . Eventually the renter has to pay for the house (end of story).
They used the cost to buy in the CPI back in 1978 and 79 .
Which did not leave inflation in the pipe but brought if up front where you could control it with interest rates.
Like I said, If the Fed calculated inflation like they did in 1978 or 79 , then we would have the (FED) inflation rate of 1978-79 (10-15%) . Eventually the renter has to pay for the house (end of story).
They used the cost to buy in the CPI back in 1978 and 79 .
Which did not leave inflation in the pipe but brought if up front where you could control it with interest rates.
