Deflation threat grows as QE money printing rages unabated!

[wjk]

Quote from Ricter:

It's not the first time you've used the "my bills are higher" argument.

True, but I find it ironic that literally everything I buy is getting more expensive at the same time the fed is devaluing the dollar and saying there is no inflation. Sounds like a justification to me.

I know some of the ways inflation is calculated excludes food and energy. I know that supply and demand are factors. I know transportation and production costs are adjusted up and passed on when fuel goes up, and so and on. Just the basics, though.

Regarding the numbers the fed uses; I know the gov lies about numbers to justify their acts. I know that they are continually changing the way numbers are factored, not only inflation but employment and all the other data. I'm no expert, but I do read both sides of the argument by the so called experts.

Dude, I just come in here to try and have a little fun. Used to be real serious in the forum, but trying to lighten up last few years. I've become very cynical about...well pretty much everything. Helps keep my mind off my skyrocketing cost of living (kidding, sort of). Also, no need to be disrespectful with name calling. I've never done that with you. I won't if you don't.

Back to inflation. Just curious: Are you up on the hyper inflation histories of Germany, Zimbabwe, and some of the others?

 

[Ricter]

Quote from wjk:

True, but I find it ironic that literally everything I buy is getting more expensive at the same time the fed is devaluing the dollar and saying there is no inflation. Sounds like a justification to me.

I know some of the ways inflation is calculated excludes food and energy. I know that supply and demand are factors. I know transportation and production costs are adjusted up and passed on when fuel goes up, and so and on. Just the basics, though.

Regarding the numbers the fed uses; I know the gov lies about numbers to justify their acts. I know that they are continually changing the way numbers are factored, not only inflation but employment and all the other data. I'm no expert, but I do read both sides of the argument by the so called experts.

Dude, I just come in here to try and have a little fun. Used to be real serious in the forum, but trying to lighten up last few years. I've become very cynical about...well pretty much everything. Helps keep my mind off my skyrocketing cost of living (kidding, sort of). Also, no need to be disrespectful with name calling. I've never done that with you. I won't if you don't.

Back to inflation. Just curious: Are you up on the hyper inflation histories of Germany, Zimbabwe, and some of the others?

Apologies. I assume everyone here is a vicious, thick-skinned beast.

 

[wjk]

Quote from Ricter:

Apologies. I assume everyone here is a vicious, thick-skinned beast.

It's all good, Ricter. I was adequately warned before I ever came to the P and R forum. I've just reached the age where I prefer to watch flame wars rather than participate in them. I'd be lying if I told you some weren't outright entertaining, though.

 

[Ricter]

No, Hyperinflation Is Not Coming To The US
Steve H. Hanke, Johns Hopkins University Mar. 30, 2013, 7:11 AM

"While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking.

Is hyperinflation coming to the U.S.?
"No. Hyperinflation arises only under the most extreme conditions, such as war, political mismanagement, or the transition from a command economy to a market-based economy. If you compare the U.S. to countries that have experienced hyperinflation– think Iran, North Korea, Zimbabwe, and the former Yugoslavia, for example — the U.S. doesn’t even come close. Hyperinflation begins when a country experiences an inflation rate of greater than 50% percent per month — which comes out to about 13,000% per year. Although it experienced elevated inflation around the time of the Revolution and the Civil War, the United States has never passed this magic mark. At present, the U.S. inflation rate, measured by the consumer price index (CPI), is less than 2% per year. So, to say that the U.S. is on its way to hyperinflation is just nonsense.

But what about Quantitative Easing? Won’t that cause high inflation?

More >>

 

[wjk]

Quote from Ricter:

No, Hyperinflation Is Not Coming To The US
Steve H. Hanke, Johns Hopkins University Mar. 30, 2013, 7:11 AM

"While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking.

Is hyperinflation coming to the U.S.?
"No. Hyperinflation arises only under the most extreme conditions, such as war, political mismanagement, or the transition from a command economy to a market-based economy. If you compare the U.S. to countries that have experienced hyperinflation– think Iran, North Korea, Zimbabwe, and the former Yugoslavia, for example — the U.S. doesn’t even come close. Hyperinflation begins when a country experiences an inflation rate of greater than 50% percent per month — which comes out to about 13,000% per year. Although it experienced elevated inflation around the time of the Revolution and the Civil War, the United States has never passed this magic mark. At present, the U.S. inflation rate, measured by the consumer price index (CPI), is less than 2% per year. So, to say that the U.S. is on its way to hyperinflation is just nonsense.

But what about Quantitative Easing? Won’t that cause high inflation?

More >>

Interesting article. If he's correct, a lot of theories floating around are just that...theories. I was under the impression that the fed was intentionally devaluing the dollar. Does this article challenge that? I ask that because it states he's basically ignored the fluctuations in dollar value (or was, if I'm reading this correctly).

 

[Lucrum]

Quote from Spike Trader:

Thanks luke . . . your statistics mean a whole lot more than anything.

8% inflation isn't MY statistic moron. Look it up yourself, right after you finish your homework.