Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Toddsterpatriot
So, the general level of prices is rising 6% to 10%? And you're the only one who noticed? Wow, you're good!

Yes. The real annual rate of inflation is 6-10%. Housing is up well over that. Medical and education are increasing at a rate in the high single digits. M3 (the money supply) is up 6%. Energy prices are up well over 10%. The AIG commodity index is up 13%. And so on.

The government understates the real rate of inflation since this allows them to decrease the annual COLAs and increase the GDP numbers.

94 posted on 12/03/2005 5:09:21 PM PST by Mulder (“The spirit of resistance is so valuable, that I wish it to be always kept alive" Thomas Jefferson)
[ Post Reply | Private Reply | To 93 | View Replies ]


To: Mulder
Yes. The real annual rate of inflation is 6-10%. Housing is up well over that.

You know that most people already own houses? If my house doubles in price how does that impact my cost of living?

Energy prices are up well over 10%.

Yes. Now multiply that by the % of income people spend on energy and you get what?

The AIG commodity index is up 13%.

Yeah, I heard copper was up big. And how much copper does the average consumer use each year?

Now if you are correct, why are long term bonds yielding well under your 6% to 10% numbers? Real interest rates would be -1.5% to -6%. Not very likely over the long term.

95 posted on 12/03/2005 5:23:29 PM PST by Toddsterpatriot (The Federal Reserve did not kill JFK. Greenspan was not on the grassy knoll.)
[ Post Reply | Private Reply | To 94 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson