Inflation at last?

[Mega]

Well REAL inflation:-
http://www.bloomberg.com/news/2012-0...ty-shlaes.html
Mike

[lektrode]

Re: Inflation at last?

Well REAL inflation:-
http://www.bloomberg.com/news/2012-0...ty-shlaes.html

A little is all right. That’s the message Federal Reserve Chairman Ben S. Bernanke has been giving out recently when asked about the evidence of inflation in the U.S. recovery.
Sometimes Bernanke doesn’t even go that far. He simply says he doesn’t see inflation. The Fed chairman recently described the prospects for price increases across the board as “subdued.”

(and krugman swears to it!!...)


“Sudden” is more like it. The thing about inflation is that it comes out of nowhere and hits you. Monetary policy is like sailing. You’re gliding along, passing the peninsula, and you come about. Nothing. Then the wind fills the sail so fast it knocks you into the sea. Right now, the U.S. is a sailboat that has just made open water, and has already come about. That wind is coming. The sailor just doesn’t know it.

oh some of us 'know it' allright - it couldnt be any clearer or more pronounced - esp in the boat biz, where the price of most of the stuff i buy has rocketed up by 25-50% in the past few years (hint: anything made of metal, esp if electrical or refrig related and THEN theres the stuff like resins/plastics and hey! the price of gasses, like r134a last year and r22 this year = ASTRONOMICAL, up 100% and then some = get ready to pay _plenty_ to get yer a/c's fixed this summer ;)

i just wish that the bernank and his cheerleader krugman had boats.... so i could 'treat' them to some of their 'subdued inflation'

[charliebrown]

Re: Inflation at last?

i just wish that the bernank and his cheerleader krugman had boats.... so i could 'treat' them to some of their 'subdued inflation'

Lektrode you just bust me up ROFLOL

They probably do have "secret boats" to escape when the pitch forks come out. Add Romer to that list too.

[solitas777]

Re: Inflation at last?

Real inflation? Have you checked out food prices lately? Yowsa!

[Starving Steve]

Re: Inflation at last?

The new reduced sizes and nick-knack bottles and cans at the grocery stores this year is what scares the hell out of me. This is serious inflation.

I blame the economists for this. They know ship about how the money world works. Imagine putting the world through the agony of very high interest rates --- a Bank of Canada prime rate of around 23% for a few days in 1980, with businesses failing everywhere in Canada because of the tight money policy and the inflation that was out of control, both at the same time--- and now the same idiots are trying to re-kindle inflation once again........ This is like a fire department being very good at putting-out house fires by flooding entire neighbourhoods with water whenever necessary, and then going out of its way to light houses on-fire once again. Imagine having the fire department say to the public that it needs homes to be set-on-fire at a steady and managed rate of ignition, in order to keep the city's economy healthy and everyone in the city safe.... Imagine the dribble from fire authorities that might say that flooded neighbourhoods keep the lawns green, and burned-down homes create construction jobs and a stronger real estate market.

Students: Walk-out of your economics classes in universities, and also walk-out of your ecology classes. Don't waste your time in those subjects.

[photon555]

Re: Inflation at last?

I don't see much future in real sit-down restaurants, except in locations where they have a well paid clientele, or a clientele that can charge off their meals to their business, or government office.

[photon555]

Re: Inflation at last?

For the first few years after my wife and I were marrried (in 1972) we would regularly shop the supermarket sales and take advantage of the 10 cans for one dollar specials. Ten cans of vegetables (the regular 15 oz. or 15.5 oz. size) for just one dollar. We would stock up as much as we could. Probably a good idea now also. I would get some of those canned oxygen-free dehydrated vegetables that last forever. They are more expensive now, but just wait a couple of years, or less. But only do it if you like to eat everyday, or every other day.

The dollar is dying, and like a person it seems to have gone senile first.

[lektrode]

Re: Inflation at last?

For the first few years after my wife and I were marrried (in 1972) we would regularly shop the supermarket sales and take advantage of the 10 cans for one dollar specials. Ten cans of vegetables (the regular 15 oz. or 15.5 oz. size) for just one dollar.....

oh they still have those, cept that now its 10 for 10dollars = 1000% 'subdued inflation'

or how about ski lift tickets: cant find much (nor remember much...) from those daze, but vail was 30bux in 1986, 46 in 1994... today: 105 baybee!!! (plus another 15or20 to park in the garage)from 46 to 105 in 18years = the REAL RATE of inflationsince the cost of running the lifts, personel, etc etc, couldnt be outsouced to china, and mere demand from manhattan doesnt fully explain it, so this would appear to be a valid marker on prices over the past 30 years or so, n'est pas?

[Starving Steve]

Re: Inflation at last?

As a rule of thumb, if one takes prices of things in the early 1960s and multiplies them by 12.5 ( give or take ) you end up with the prices now in Canada and America.

Houses in 1960 @ $20,000 now equal $250,000, some places more and some places less.

Cars in 1960 @ $ 1500 now equal roughly $18,750.

A 99cent chicken dinner in restaurants in 1960 now equals roughly $ 12.40.

First-class postage in 1960 was 3c, and now it is roughly 38cents.

A gallon of gasoline in 1960 was about 35.9cents per U.S. gallon, and now it is roughly $4.49 per U.S. gal.

A penny kwh of atomic energy in 1960 now is 12.5 cents per kwh of non-atomic electricity, and much more than that for insane solar and wind power.

A $6 per night motel room in 1960 now costs around $75/ night.

An $80 per month apartment in 1960 now costs $1000 per month, give or take.

So, the punchline is that if I take a dollar to-day and divide it by 12.5, I end-up with 8cents in purchasing power in 1960. That was what a Mexican peso was worth in foreign exchange to U.S. dollars in 1960. Twelve and one-half Mexican pesos in 1960 equaled one old U.S. silver dollar that circulated all over the Rocky Mountain states at that time......... And even the Mexican pesos at that time had a heavy silver coating on their outsides, and they were nearly the diametre and about half of the weight of a U.S. silver dollar circulating in the Western states at that time. People in Mexico in 1960 would carry pockets/purses full of the silver-coated pesos.

[photon555]

Re: Inflation at last?

The big difference is that if you made $100 a week in 1960, you could afford a house, and a car, and could live pretty good. If you make $1250 a week now you will pay quite a bit in taxes and will find it quite difficult to afford a house, unless you live where housing prices are below average. Forget about any car except a very cheap one. And how many people even make that much. I believe that is well above the median income.

[lektrode]

Re: Inflation at last?

The big difference is that if you made $100 a week in 1960, you could afford a house, and a car, and could live pretty good. If you make $1250 a week now you will pay quite a bit in taxes and will find it quite difficult to afford a house, unless you live where housing prices are below average. Forget about any car except a very cheap one. And how many people even make that much. I believe that is well above the median income.

and this is the part that seems to confuse the 'more government spending' cheerleaders - we had much higher standards of living when the .gov spent/took less

bigger gov = less for the rest of us, as they simply keep taking more and more, either directly thru increased taxation/fees or indirectly thru the back door with inflation (dilution of the dollar, just like stocks)

the banksters then capitalize on the excessive spending by the political class, who 'creates more jobs' (read: .gov dependants) by the rise in interest payments on the debt created to buy more votes of the dependant class.

again, this is how NH shows why this whole fraud happens (and can be prevented): give the political class more and they will spend that and then some every time - and NH has by and large prevented this from occuring by preventing the political class from enacting broadbased taxes: no sales tax and no income tax and POOF!!!
no money for the political class to play games with = higher standard of living for The Rest of US

sez a 'small r' republican

[lektrode]

Re: Inflation at last?

A penny kwh of atomic energy in 1960 now is 12.5 cents per kwh of non-atomic electricity, and much more than that for insane solar and wind power.

or howz about .44/kwh when the .gov 'mandates alternatives' (read: ANYthing enviro-politcally correct)

A $6 per night motel room in 1960 now costs around $75/ night.
....

and while motel6 will still leave the light on for ya for about 40, its become far more fashionably correct to shack up at places that charge more like 200... and dont fergit the 'resort fee'

[ocelotl]

Re: Inflation at last?

As a rule of thumb, if one takes prices of things in the early 1960s and multiplies them by 12.5 ( give or take ) you end up with the prices now in Canada and America.

Houses in 1960 @ $20,000 now equal $250,000, some places more and some places less.

Cars in 1960 @ $ 1500 now equal roughly $18,750.

A 99cent chicken dinner in restaurants in 1960 now equals roughly $ 12.40.

First-class postage in 1960 was 3c, and now it is roughly 38cents.

A gallon of gasoline in 1960 was about 35.9cents per U.S. gallon, and now it is roughly $4.49 per U.S. gal.

A penny kwh of atomic energy in 1960 now is 12.5 cents per kwh of non-atomic electricity, and much more than that for insane solar and wind power.

A $6 per night motel room in 1960 now costs around $75/ night.

An $80 per month apartment in 1960 now costs $1000 per month, give or take.

So, the punchline is that if I take a dollar to-day and divide it by 12.5, I end-up with 8cents in purchasing power in 1960. That was what a Mexican peso was worth in foreign exchange to U.S. dollars in 1960. Twelve and one-half Mexican pesos in 1960 equaled one old U.S. silver dollar that circulated all over the Rocky Mountain states at that time......... And even the Mexican pesos at that time had a heavy silver coating on their outsides, and they were nearly the diametre and about half of the weight of a U.S. silver dollar circulating in the Western states at that time. People in Mexico in 1960 would carry pockets/purses full of the silver-coated pesos.

1.6 grams of silver per coin. Roughly 19 coins to a troy ounce.

http://worldcoingallery.com/countries/display.php?image=img5/121-459&desc=Mexico km459 1 Peso (1957-1967)&query=Mexico