Why inflation isn't as bad as you think

The only place there’s no inflation is at the Federal Reserve, in the real world where the rest of us live inflation is rampant.

If we used the same methodology to calculate inflation today as we did in 1980 it would be over 9%.

The author seems to be saying that inflation isn’t bad according to the way the government calculates it, but since they’re skewing the data their inflation statistics are of no value.

BTW look up the Boskin Commission.

Your house is another asset that keeps up with inflation fairly well. This is due primarily to rent and wage increases, which will both push up home prices in the long run

what is this author smoking?  After being in our house for over 33 years, the average  recent sale price in our neighborhood is around double our purchase price.  We've spent  that  much over the years in maintenance and improvements. The only thing that seems to go up consistently is our utility  bill...

Wow, The Mad Hatter now appearing on MSN.

I won’t even get into the social discourse of inflation over the decades and its impact on the structure of the American Family, single to dual income, just to maintain the basics. And how the kids have to help out now because educations expenses are going nuclear.

No, let’s just stick with the items in this premise:

1.The stock market compensates for inflation.

Had the stock market kept up with inflation the Dow would be around 20,000 or better depending on what expenses you include. This premise also assumes that the average American family has the discretionary income to invest, they don’t. They’re not even keeping up with the basics like healthcare.

 

-Your house is appreciating—that just boggles the mind. If you bought in 2010 or later maybe. That excludes most people. Everybody may not be under water but most home owners have lost value. 

 

 

2. Taxes

The author is only focused on Federal taxes and State taxes. County and city taxes are going up. They are broke, they need money so water services,toll roads,splost taxes,school taxes,gas taxes are going up. Pulse the Author has ignored the pass along taxes that companies asses, like the Phone and Cable companies tack-on's. You know, that FCC charge you see at the bottom of your phone bill.

3.It’s your fault, your living lavishly.

I like this one the best! Now let me just say, I do agree it’s insane that people will pay $100 or more per month for cable for what is basically 150 channels of re-runs. However the Chicken sandwich cost less because you get less. On a per ounce basis you are paying more.

4.Skip the coke, pay your mortgage.

He’s right about this one. Coca- cola prices are going through the roof! Berkshire Hathaway needs a better year. That or all the executives at Coke need new Audi’s and a better house, but hey, doesn’t that stimulate the economy?

Whoever wrote that article would be great in comedy. What a total joke.

Deflationary cash is cold, cruel and hard...to our American Aristocracy. No one else. The minute Americans of modest to low incomes withdrew their cash from banks, banks thought they'd punish them by lowering the rate on savings accounts and feeing customers to death on checking. Smart Americans...we always know we have options. We started using our debit cards judiciously. Banks answer to that? Fee the debit cards...oh yeah? Try it. It's our money we allow these banks to hold. Banks then use money held for high risk investments. That's what's killing them and Wall Street. That there isn't a steady funnel from our paychecks to their high risk investment gambling. Boo hoodles.

Keep deflating Main Street. These dumb bunnies of Big Business will sooner or later wake up and smell the coffee. Who ever said that the only way prices can go is UP? What a load of long horn dung! Prices only go up because greedy people force them up. No other reason.

Perfect example of sheer Corporate stupidity. Big Oil worked hand in hand with Detroit to produce millions of gas guzzlers. Now gee...I can't imagine why can you? Maybe like forcing consumers of their product to buy more gasoline? Then these same stupids decided enough is never enough and went around jacking gas and oil prices. Stand by...Americans don't like to be hoodwinked. Detroit went bust and Americans went hybrid or alternative energy with gusto.

Prediction: Walmart with all of its foreign goods will be forced to increase prices making it on the same level as any other local small business enterprise and Americans will show their allegiance to their small businesses instead of a corporate vulture like Walmart and its associated minions.