INFLATION for this year was 5-8% according to PPI/CPI

[ReiAyanami]

http://biz.yahoo.com/cbsm-top/...82ff1d237a7bf09_1.html

"The PPI is up 5 percent in the past year, the biggest rise since late 1990, when another energy crisis pushed inflation higher.

Core intermediate prices have risen 8 percent in the last year, according to the Labor Dept. This is the worst inflation since 1981. "


healthcare up 50%
oil up 80%
tuition about 3x to 9x times inflation depending on where you live


http://www.bls.gov/cpi/cpifaq.htm#Question_12

 

[ReiAyanami]

no wonder americans save so little, every dollar in the bank earning 1-2% interest loses 7% real value each year.

even investing in the stock market and earning 7% annual you're still down 1% as a consumer

why doesn't Japan want to buy more US bonds? they already hold over 1 in every 10 US debt dollars

 

[tallest1]

Fox News Spin: "No more recession! Yay! Go Bush!"

 

[KevinH]

Gogogo stagflation!

 

[Dissipate]

Originally posted by: ReiAyanami
no wonder americans save so little, every dollar in the bank earning 1-2% interest loses 7% real value each year.

It does not take a genius to figure out why this is. Think about it. Do you think that free checking and savings accounts are really free? Of course not. When you have money in the bank, you are literally inflating your own wealth away. The bank loans out 10x the amount of money it actually has, which reduces the value of all the money that is out there.

The whole process is described here:

Fractional Reserve Banking

American sheeple are so fvcking stupid when it comes to money and banking. They play right into the hands of the political and banking elites, and haven't a fvcking clue what is happening to them i.e. they can't figure out why the interest on their savings accounts does not keep up with inflation.

 

[Aimster]

do you raise Interest Rates when inflation is at 8% or do you lower it?

 

[Stunt]

Originally posted by: Aimster
do you raise Interest Rates when inflation is at 8% or do you lower it?

Raise

Higher interest rates and higher good prices (inflation) make people invest their money, and demand on goods lowers (inflation goes down)

 

[dmcowen674]

Originally posted by: ReiAyanami
Topic Title: INFLATION for this year was 5-8% according to PPI/CPI
Topic Summary: 1 month left to go, Are you comfortable with 8% inflation?

Of course the FLL's are happy with it, they believe the almighty "Tax Cuts" more than makes up for any other increases. :roll:

 

[0marTheZealot]

Fractional reserve banking is the bane of society. It sets up a system in which if there isn't growth each year, the system will collapse. In a finite world, something can not grow indefinately. In biology, this is called cancer, and even cancer stops growing when it hits something limiting.

 

[Dissipate]

Originally posted by: 0marTheZealot
Fractional reserve banking is the bane of society. It sets up a system in which if there isn't growth each year, the system will collapse. In a finite world, something can not grow indefinately. In biology, this is called cancer, and even cancer stops growing when it hits something limiting.

Yep. The U.S. cannot continue racking up debt, it simply cannot go on forever. I think the game will be up relatively soon though, once consumers are given a viable alternative to fiat that eliminates all woes of inflation.

 

[Genx87]

Yup real soon.

Care to tell us how soon? That way when it doesnt crumble we can all laugh at you.

 

[frankie38]

thanks I really use some inflation...now I can pay my fixed rate debt(mortgage) with my inflated paycheck! cool.

 

[Stunt]

Originally posted by: frankie38
thanks I really use some inflation...now I can pay my fixed rate debt(mortgage) with my inflated paycheck! cool.

You have a link that says that wages are on the rise...you know to keep up with inflation?
in that case...this is a non issue.

you do realize that inflation is inflation on goods, not how much your money is worth.
inflation makes your money worth LESS

 

[0marTheZealot]

Originally posted by: Genx87
Yup real soon.

Care to tell us how soon? That way when it doesnt crumble we can all laugh at you.

So your argument is that since it hasn't happened in the past, it won't happen in the future?

I haven't gotten cancer in the past, therefore I will not get cancer in the future.
http://observer.guardian.co.uk...0,6903,1366578,00.html

 

[ReiAyanami]

Originally posted by: Genx87
Yup real soon.

Care to tell us how soon? That way when it doesnt crumble we can all laugh at you.

is 7-8 years soon enough for you? that'd be a good estimate because conservative CBO estimates put federal debt in excess of $10 trillion in less than 10 years, costing up $500 billion annual interest payments.

our GDP growing at 4.5% generating $420 billion govt debt making 8% inflation
our GDP must grow in excess of 6% annually generating $0 govt debt making excess of 10% inflation

either scenario, we lose. and furthermore, i highly doubt we could ever sustain the 6% GDP growth required to neutralize the ever growing govt debt.

the alternate is to cut 1 in 5 government dollars which would also crash our economy

 

[ReiAyanami]

the prospects of the dollar have caused it to drop 9% in the last 2 months. or 60% against the euro in the past 4 years, and 30% against the yen. if it ever breaks $1:100Y then all hell breaks loose

but don't worry, King Cotton shall save us, it saved the Confederacy right?

 

[frankie38]

Inflation is good! Deflation is bad (look at Japan)!

 

[upsciLLion]

Also in Yahoo! News: See here.

It should also be noted that inflation is not the same as increased price levels. The only way inflation can occur is if the Fed increases the money supply. The Fed has been doing nothing but increasing interest rates (effectively decreasing the money supply) this entire year. See here.

The changes in price levels are due to market activity, and while fiscal policy can influence those behaviors, the US economy is a beast and not a lot can be done (within reason) to change its prosperity.

 

[Dissipate]

Originally posted by: Genx87
Yup real soon.

Care to tell us how soon? That way when it doesnt crumble we can all laugh at you.

Within 15-40 years. See the victory link in my sig. Whether or not fiat currency collapses, the digital revolution is going to make it irrelevant.

 

[frankie38]

>You have a link that says that wages are on the rise...you know to keep up with inflation?
in that case...this is a non issue.

here it is:

http://www.bea.gov/bea/newsrel/pinewsrelease.htm

Personal income increased $61.7 billion, or 0.6 percent, and disposable personal income
(DPI) increased $53.6 billion, or 0.6 percent, in October, according to the Bureau of Economic
Analysis.

Income going up. Prices going up. Home equity going up. Personal wealth going up!

So what is there not too like?

 

[Dissipate]

Originally posted by: frankie38
Inflation is good! Deflation is bad (look at Japan)!

I knew someone would say this.

News for you:

Most important info on deflation here: Anatomy of Deflation

Also, see these articles:

The Imaginary Evils of Deflation

The Blessings of Deflation

Deflation: The Biggest Myths

Deflation and Depression, Where's the Link?

 

[Dissipate]

Originally posted by: frankie38
>You have a link that says that wages are on the rise...you know to keep up with inflation?
in that case...this is a non issue.

here it is:

http://www.bea.gov/bea/newsrel/pinewsrelease.htm

Personal income increased $61.7 billion, or 0.6 percent, and disposable personal income
(DPI) increased $53.6 billion, or 0.6 percent, in October, according to the Bureau of Economic
Analysis.

Income going up. Prices going up. Home equity going up. Personal wealth going up!

So what is there not too like?

What's not to like? The fact that inflation causes major economic distortions, and is basically a tax levied on us by the government and the banks. If I had a printing press in my house and printed up a billion dollars a day, and went out and spent all that "money," the same thing would happen that you describe. Wages would eventually increase to match the new price levels brought about by my inflationary spending spree. So what would be so bad about this scenario? The fact that I was stealing wealth out of the economy and producing nothing, of course.

 

[Genx87]

So your argument is that since it hasn't happened in the past, it won't happen in the future?

Is that really what I said?

is 7-8 years soon enough for you?

ok we have you down for 7-8 years.

if it ever breaks $1:100Y then all hell breaks loose

Ok which one do you want? 7-8 years or the above?

Within 15-40 years

I thought you said "soon"?

I predict in 1 to 1 million years the US will cease to exist as a govt. I also predict in 1 to 1 trillion years this planet wont exist. Whoppie do.

When you said soon I thought you mean "soon". Not 15-40 years lol. That means you are guessing and have no real grasp on what you are talking about.

 

[Dissipate]

Originally posted by: Genx87

So your argument is that since it hasn't happened in the past, it won't happen in the future?

Is that really what I said?

is 7-8 years soon enough for you?

ok we have you down for 7-8 years.

if it ever breaks $1:100Y then all hell breaks loose

Ok which one do you want? 7-8 years or the above?

Within 15-40 years

I thought you said "soon"?

I predict in 1 to 1 million years the US will cease to exist as a govt. I also predict in 1 to 1 trillion years this planet wont exist. Whoppie do.

When you said soon I thought you mean "soon". Not 15-40 years lol. That means you are guessing and have no real grasp on what you are talking about.

Due to the fact that we have had fiat currency for over 100 years, that is relatively soon. Yes, I do have some grasp of what I am talking about. I know enough about the banking industry to know that it will not survive the digital age. I highly suggest you read the article linked to in my signature.

 

[SuperTool]

Originally posted by: Dissipate

Originally posted by: Genx87
Yup real soon.

Care to tell us how soon? That way when it doesnt crumble we can all laugh at you.

Within 15-40 years. See the victory link in my sig. Whether or not fiat currency collapses, the digital revolution is going to make it irrelevant.

You can buy gold ETFs now, and keep all your money in gold.