Inflation is breaking out everywhere and the governments just lie and lie...

Parent Cafe
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<p><a href=“http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/10/13/ccamb13.xml&menuId=242&sSheet=/money/2005/10/13/ixcity.html[/url]”>http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/10/13/ccamb13.xml&menuId=242&sSheet=/money/2005/10/13/ixcity.html&lt;/a&gt;&lt;/p&gt;

<p>Central banks are supposed to make sure inflation doesn’t break out. What good are these bankers?</p>

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<p>We’ll just raise the cost of your kids’s student loans. Just for you. </p>

<p>Just couldn’t help it. Communism could be a good alternative. My bro is always dismal. He tries not to read the WSJ, he knows too many numbers. Not a happy bone in him except his kid.</p>

<p>Buck up dstark. Life will go on.</p>

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<p>Don’t have loans. :)</p>

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<p>then we’ll just raise the loan cost to the URM. They get dump on any way. </p>

<p>I’m in a fine mood tonight. </p>

<p>I have no answers other than Dubya has to screw his face on tighter.</p>

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<p>I’ve always looked awry at the inflation lie, which I think was invented during the Clinton Administration, when the inflation figure would be reported “without the volatile food or energy sector”. Excuse me? People on fixed income gotta eat; they gotta heat their homes; they gotta go to work; and their food gets brought in on trucks. Duh!</p>

<p>One year, I think it was 1999, I took 10 supermarket items - simply staples like bread (the same brand), milk (the same brand), a can of soup (same brand), etc., and on the same day the following year I repriced, and found an inflation rate of roughly 23%, this year in wich the reported inflation rate (without the volatile etc., etc.) was like 3.5%. </p>

<p>Of course, the price of computers had gone down that year. Not very tasty though, or nourishing.</p>

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<p>Mini, yeah the core rate of inflation…whoever came up with that idea really f…d the people in this country.</p>

<p>I also want to know why inflation is good and deflation is bad? Why is it a given that this country has to have inflation. Is it because the government is the biggest borrower? :slight_smile: When the price of computers goes down, that’s good. How come it isn’t good when the price of everything goes down? </p>

<p>Oh wait…it is good if my wages or salary goes down. That’s included in the inflation numbers and that kind of deflation is good. Unless I’m the CEO or CFO, then it’s bad.</p>

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<p>This is depressing and true.</p>

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<p>Deflation is very bad in a consumer driven economy (that’s what we have) because if prices are dropping the economy will grind to a halt as people postpone their purchases and keep waiting for lower prices. With inflation you have to rush out and buy stuff before the price goes up! Look at me - I am still waiting to buy that big screen TV and prices are still dropping! Deflation is also bad for debtors, another foundation of our economy. That being said, the Fed is currently raising interest rates in an attempt to cap inflation. The Bank of Canada raised rates today.</p>

<p>Excluding food and energy is an obvious huge issue. Unfortunately, there are additional serious problems with the consumer price surveys. I was very surprised to learn that when the survey people enter a supermarket to price items they are routinely steered toward special “sale” items rather than picking up the standard loaf of bread on the middle shelf. This can put a huge artificially downward bias on the results, which mini discovered when he did his own price survey.</p>

<p>If I exclude food, energy and property taxes there is little inflation. If I actually pay for those items there is a lot less money left over than there was 5 years ago!!</p>

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<p>Where are you counting the rise in healthcare and insurances such as homeowners? Both of these costs have risen dramatically in the past 5 years.</p>

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<p>Suze, just for you…
<a href=“http://news.yahoo.com/s/ap/20051018/ap_on_bi_ge/economy;_ylt=At1CrpzPuwqJjSnBTzyJU8Ss0NUE;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-[/url]”>http://news.yahoo.com/s/ap/20051018/ap_on_bi_ge/economy;_ylt=At1CrpzPuwqJjSnBTzyJU8Ss0NUE;_ylu=X3oDMTA3bGI2aDNqBHNlYwM3NDk-&lt;/a&gt;&lt;/p&gt;

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<p>Most of the inlfation bubble in the uS is energy related. As we adjust and prices for energy decline as projected the overall inflation will be back to a reasonable level. Housing inflation has virtually ended in many markets so a big increase in rates is not needed to hold that down. All it took was putting a scare into speculators who will move on to other get rich quick schemes.</p>