I’ve been waiting for inflation for a few year now. When?
RE: Ive been waiting for inflation for a few year now. When?
Do you notice the price of oil, food when you buy groceries, new cars, energy, gas, college tuition, tolls, and if you live in mass transit cities, train and bus tickets ?
The prices of all these things that affect the common worker are UP, even as the salaries of ordinary workers are STAGNANT or even going DOWN.
Also, yes, we have lots of money... the problem is banks, companies and INDIVIDUALS are HOARDING THEM. The money supply is there but the VELOCITY OF MONEY ( the rate at which it is being spent and circulated ) is VERY SLOW. That is the one preventing prices from going up.
Sure, that's crazy economics. People shouldn't see rampant inflation as a smart way to pay down debt. But the government does crazy stuff, and I thought they might try to sell that idea. But they didn't.
Now, here we are, kind of expecting inflation to arise, not as a policy, but simply as a result of basic economic forces. And yet, we still see no inflation. All of this debt. All of this spending. All of this money floating around. No inflation.
Wanted or unwanted, I would expect to see inflation. It seems odd.
Japan's been inflating their money supply for 22 straight years and they've still got deflation.
Oh, and the Japanese savings rate has finally fallen below the U.S. savings rate.