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Inflation

Pilt, I have wanted to read this book for a long time. The problem is I’m not educated on monetary policy (as I’m sure you can tell!) and this book intimidates the hell out of me that I’ll be lost within two pages. Have you read it? I won’t ask for a review because I suspect you disagree from cover to cover. But I’m wondering if you think an uneducated layman such as myself would understand what he’s saying?


Bad link. just gives me a blank screen.
Monetary policy is pretty easy to understand if you realize that from like 1970 to 2010, monetary policy was just controlling the short term interest rate on treasuries via setting a price that the FED would buy and sell those short term securities at.
 
How can we not be headed for big time inflation? I’m too young to remember the Carter era and we really haven’t had inflation in my lifetime. However, with the number of dollars being put into the economy, the singular focus on reducing unemployment, and a ramp up of the economy that already has too many dollars chasing too few goods, it seems inevitable. Anecdotally there are examples all over the place from housing to lumber to used cars. I think the current crypto craze is being fueled by it as people try to find a place to park excess dollars. There have been fears of inflation in the last 20 years but it has never come to pass. Is this time different?

we were supposed to be having inflation this whole time according to the Econ books.

Let’s say a widget costs $1.00, and so does a Thingamajig. If the money supply is increased so that both the widget and thingamajig now cost $2.00, the comparative value of the widget and thingamajig remain the same, but the relative value of the dollar to those items has inflated, it takes more dollars to purchase either one. The money has been devalued relative to the items it is used to purchase. Inflation is the increase of the money supply relative to the goods.

Inflation has been relatively low because the money supply has not been increased significantly compared to the total value of goods it can purchase. As the money supply has increased so has the supply of goods.

How do leftists loose all their functioning brain cells? I really want to know. Someone, anyone, explain all these morons to me.
We've lived our entire lives with inflation. Youngers ones with only mild.
 
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Using the inflation adjusted GDP based on their interpretation there is a slow decline going back to around 1995. There is some up and down but connecting the peaks appears to have a slyt down to mostly neutral slant. Anyway, I don't believe anything put out by the government as far as economy. My paycheck has not kept up with price inflation in recent memory for any president. I don't care if it was Trump, Obama, Clinton, or the Bushes. Economic numbers are cooked and the stock market is a poor matrix for overall economic health. Just my two cents.

Generally speaking, I like shadow stats approach to the data and they are generally well respected from what I understand.
 
Using the inflation adjusted GDP based on their interpretation there is a slow decline going back to around 1995. There is some up and down but connecting the peaks appears to have a slyt down to mostly neutral slant. Anyway, I don't believe anything put out by the government as far as economy. My paycheck has not kept up with price inflation in recent memory for any president. I don't care if it was Trump, Obama, Clinton, or the Bushes. Economic numbers are cooked and the stock market is a poor matrix for overall economic health. Just my two cents.

Generally speaking, I like shadow stats approach to the data and they are generally well respected from what I understand
No they aren't. They are a laughing stock.

You are reading that graph wrong. That line doesn't represent GDP levels, that line represents GDP growth. That line says the economy has contracted every year since 2004.

You are telling me your material well being has decreased since 2004? You are poorer today than you were in 1994? Did you get poorer during the Trump presidency?

Her is a much better and actually respected alternative data project:
 
Well definitely not poorer now than in 1994. In 94 I was working as an EMT for $5/hr (maybe $7.5 when I got to Paramedic) and as an adjunct Chemistry instructor for ~$300/mo. Since 2004, I would say my material well being has remained overall stagnant, but I worked more to have the same over time so maybe it is lower. Or maybe it is perception as I have watched prices go up. I perceive no difference between presidents. My perception is we have been in a prolonged contraction for close to 20 years, why else would there be an easy money fed policy.

My apologies, I looked at the graph wrong as well.

Laughing stock may be a little harsh. I'm no economist but there seems to be an exceedingly wide range of opinions regarding any economic theory. And, they all think the other is a laughing stock. lol.

The Billion Price Project is fascinating. I wish I could access it all.
 
Market hits 35K and has been in a downward slide since.

Is this the beginning of the bubble popping?
 
Market hits 35K and has been in a downward slide since.

Is this the beginning of the bubble popping?
Hope you've moved your money to commodity stocks. .9% month to month inflation in today's CPI report. This is the consequence for printing trillions in stimulus, and the sad part is that due to political pressure the fed refuses to step up. Hopefully this gets the idiots in Washington to stop creating even more spending bills.
 
Worst CPI inflation number since George Bush was president and it didn't even get a mention on the ABC nightly news, yet a car crash in Philly where someone accidentally drove into an outdoor dining area was news worthy. Further proof our national media deliberately avoids stories that would reflect poorly on the current administration.
 
My perception is we have been in a prolonged contraction for close to 20 years, why else would there be an easy money fed policy.
Because inflation was below target.
Laughing stock may be a little harsh. I'm no economist but there seems to be an exceedingly wide range of opinions regarding any economic theory. And, they all think the other is a laughing stock. lol.
The idea that the economy has shrunk every quarter since 2004 or that the CPI/GDP deflator has significantly underestimated inflation is definitely on the far off fringes.
 
Worst CPI inflation number since George Bush was president and it didn't even get a mention on the ABC nightly news, yet a car crash in Philly where someone accidentally drove into an outdoor dining area was news worthy. Further proof our national media deliberately avoids stories that would reflect poorly on the current administration.
Glad I read these message boards or I would have never heard about the CPI print.
 
Speaking of Putey, HOLY SHIT @Syskatine. It looks like Biden was pulling a Syskackholster on Putin. So tough.
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Bidenflation!

It’s like regular inflation, but better because the most popular President of All Time* has stopped shuffling deck chairs and is going to start drilling holes in the hull to let the water drain out.

(* Until President-in-Waiting Heiress Kamala ascends, at which point the NPCs will receive the “Dirty Old Joe Bad” programming update.)
 
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