Austerity is failing Greece and Ireland

mame

mame

Well-Known Member
NoDrama said:
Increased demand from what? Not from increased production, the demand is increased because of fear of inflation. You want to keep your purchasing power so what do you do? You invest in commodities when inflation is high( like it is now). Oil is the #1 commodity in the world, its no surprise people are buying a shit load of it to keep from losing their asses to inflation.

If you were correct that oil is causing the inflation then all prices of all goods in 2008 when oil was 40% higher than it is now would be higher than it is now. The price of gold in 2008 was $850, its $1530 now, the price of corn was $6 a bushel, it is now $7.30. cotton cost $.70 a bushel, now its $2.55 etc etc etc etc. Inflation IS money printing and NOTHING else. The price of oil is being increased by people who keep buying it in the hope that they save purchasing power.

The Price of Gold is double what it was in 2008, but it costs LESS to get it out of the ground than in 2008. Oil Prices were HIGHER in 2008. Your argument has been disproven.


When you go to the store and see prices are higher than before, they haven't really gone up in price, your dollar just buys less than it did.

Gas prices are going higher, not lower, and you can take that to the Bank!
Click to expand...
Listen, first of all you didn't disprove anything by cherry picking some prices...the CPI index found Page 5 of this report, just because you pick a few prices that support your argument doesn't mean the whole picture supports your argument. As you can see in the graph the consumer price index was much higher in 08 than it is today. Also notice how the CPI trends towards core inflation - which remains pretty low. WSJ and the like have been banging the inflation drum for 3 solid years now... "the bond vigilantes!" "hyperinflation oh noes!" "end the fed!". Rates remain as low as ever; The Bond vigilantes aren't coming. Core inflation remains below target; Moderate inflation may be likely in the future - but that's a good thing right now.

It's clear nothing I say will convince you on this subject. The only way to settle this, just like https://www.rollitup.org/politics/425573-hyperinflation-inevitable-usa.html is to wait until we have a couple more years of data.
 
mame

mame

Well-Known Member
I'll come at it a slightly different way:
CPI.png

This is the CPI, this time in levels - not rates of change. Notice something? The post recession pattern is pretty much the same as the pre recession pattern overall, you could almost draw a strait line and you'd see a constant uptick(oh wait, that'd be core inflation wouldn't it? Oh my! the CPI does trend to core inflation, which is low? Who would've thought?)
 
N

NoDrama

Well-Known Member
PICK A FEW? I CAN PICK 100,000 OR MORE. How about every food item at Wal Mart? How about electricity? How about Coal? How about Pumpkins, jeans, shirts, Tommy Hifiger wear, candy bars, ice cream, ammunition, machinery, equities. I can go on and on all day naming things that have gone up in price since 2008's high oil prices happened. I don't have to cherry pick anything, as long as its not an electronic device its probably gone up in price since 2008, even though the price of oil is less. Oil cannot EVER cause inflation. Inflation is a monetary event EVERY TIME in history, EVERY TIME, many times this has happened in history, but now all of a sudden everything is different?

CPI Figures are bunk, they aren't even close to reality they are so skewed. Did you know that if your iPad costs $1,000,000,000,000,000 more, but does more stuff the CPI rating is "No Price increase" due to hedonics (AKA Happiness economics) because it can do more it is worth the extra price, therefore it is not counted as price inflation.
 
You must log in or register to reply here.
Top