Posted on 06/21/2013 6:19:51 AM PDT by SeekAndFind
Remember back when QE started and we saw charts of high powered money going vertical all over the place and everyone who didn’t understand modern banking said that the reserves would flood out into the economy causing high inflation or even hyperinflation? And do you also remember how most of those same people also said that the only way you’d be able to protect yourself from this hyperinflation was by owning hard assets like gold or silver? Well, the inflation never came.
The most recent reading of 1.7% pretty much proves that we’re much more Japan than we are Weimar (and yes, even independent gauges confirm the low inflation story). And now the portfolio recommendations are falling apart as well….
It’s one thing to be wrong about the way banking works and the way inflation might spread. But most of these people were explicitly recommending a substantial overweight in gold and silver as well. And they’ve been annihilated in recent years.
Gold is down 33% from its 2011 highs. And silver is down a staggering 60% since the time I started referring to it as a bubble. These are massive moves and if you’ve been substantially overweight these metals in your portfolio then you’ve experienced substantial pain based on sheer misunderstandings by people who are posing as experts.
(Excerpt) Read more at businessinsider.com ...
I honestly didn’t go and read the article, but when this topic arises, I always go back to the most basic definition of inflation - too much money chasing too few goods. And nowhere TODAY is this more impairment then in an area that often gets overlooked when discussing inflation..........the STOCK MARKET.
apparent, not impairment (sorry)
Guess if I ever buy another TV, I may have to eat it. Does anyone have a good recipe for cooking a TV to make the TV eatable?
have noticed that too ... lumber is way up as is the cost of auto and homeowner insurance.
“With real unemployment and underemployment somewhere north of 13% and Obamacare starting to kick in, I don’t see wages increasing anytime soon.”
Had a Staff Meeting this week. All of the Managers and The Big Boss. We were basically told to cut the fat everywhere and we would NOT be hiring anyone full-time, even those part-time, loyal employees who are reaching the threshold for qualifying: ‘X’ amount of hours per week for an extended period; we managers give the available hours to the hardest workers, of course.
Secondly, we were pretty much told that 0bamacare will ADD $15K to the bottom line of every full-time employee we already have (close to 100 of us, and no splitting us up into smaller mini-companies, ‘cuz Mother Government is on to us...) and that keeping our jobs IS our ‘raise’ this season; we usually get raises in July.
This man provides many, many jobs throughout our state, full and part time. Things are gonna get ug-lee. I am in totally ‘hunker down mode’ at home and at work.
First, turn it to the food channel.
Maybe there is no inflation in EBT lines for essential. Guess the D.C. folks have those people’s backs.
So long as wages remain nominally static, we have NO inflation......just rising prices and a lowered standard of living.
Insurance: up
Food: up
Fuel: up
Education: up
What if one cannot afford the food channel?
Also the only way the trillions the Fed has pumped into the economy hasn't driven massive inflation is because the banks either sit on the money or lend it back to the US government. If they start lending it out to consumers and businesses the velocity of money will return to something close to normal and the inflation dam will break.
This guy says inflation isn’t here, he must not buy his own food and gasoline.
I have another fact for him.
It aint over yet, The fat lady hasn’t sung.
Because it isn’t here does not mean it isn’t coming.
So reading between the lines, this guy basically believes there should only be government-sanctioned news about the economy.
Um, and gasoline? I feel the increase in groceries every time I shop. How about tuition and medical care? This is absurd. Economists can be such morons.
You font need an economist — just eat out occasionally and look at the serving sizes and prices at your favorite places. I have watched beef tenderloin dusappear from menus Notice that a pound if coffee us eleven ounces and rising in price. Affluent academics probably have their meals provided by their post doc slaves...
Crapolla.
Another over educated, yet bereft of real world knowledge, pinhead regurgitates the party line.
Politicians and economists running our country into the ground because they believe theory is reality.
Inflation, unemployment, the GDP. Simply omit the variables that hinder getting the result you desire. Then repeat this result ad nauseum until it becomes the mantra that morphs into fact.
The Soviets used to say that everyone could afford bread. In theory that was true. The fact that there wasn’t any bread to be had was always conveniently omitted.
Come on, that's not an essential unless you're you're a cop. Then it's a two or three times a day thing.
If inflation were computed rationally, with a genuine desire for the truth, it would be a much higher number.
If that were done, then a properly computed GDP would probably be negative for the last several years or more. In reality, we probably have never come out of the recession.
In truth, without some serious policy changes or some unforeseen major event, we are in an indefinite recession. With the likelihood of turning into a depression being much greater than turning into a recovery.
So Orwellian in so many ways. And getting worse, not better.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.