Why Reported Inflation Seems Different Than Reality

Mav88 · Dec 20, 2012

holy crap, we got action

fiscal cliff is here, parachutes on..

Ricter · Dec 20, 2012

Quote from Mav88:

asserting that inflation is a problem only when adjusted wages fall for the top 5th is pretty dumb, they derive a lot of income from portfolios that may rise with inflation

Therefore inflation is a non-issue. Thank you for coming around.

Mav88 · Dec 20, 2012

Quote from Ricter:

Therefore inflation is a non-issue. Thank you for coming around.

surely you're kidding, that's your proof?

you're hopeless

Ricter · Dec 20, 2012

Quote from Mav88:

surely you're kidding, that's your proof?

you're hopeless

You acknowledged the proof. Compensation inflation (for some, in light of the fact you later qualified with, "for most") is greater than cost of living inflation.

Mav88 · Dec 20, 2012

Quote from Ricter:

You acknowledged the proof. Compensation inflation (for some, in light of the fact you later qualified with, "for most") is greater than cost of living inflation.

do you understand that most people don't get compensated from inflation adjusted sources? that short term debt then become a liability that many, including gov'ts, suddenly can't afford, that producers can only pass on so much cost..

there are reasons that too much inflation is a problem

Ricter · Dec 20, 2012

Quote from Mav88:

do you understand that most people don't get compensated from inflation adjusted sources?

I do, I'm one of them. Yet my compensation is growing faster than the cost of living. I'm not alone in that.

Tsing Tao · Dec 20, 2012

Quote from Ricter:

Inflation is a non-issue.

<img src="http://www.advisorperspectives.com/dshort/charts/census/household-incomes-mean-nominal.gif">

You've tried this chart before, and I responded to it here to show you the issues with it, and you never replied to the challenge. So you post it again with an updated version and think that changes things?

It was in the thread where you claimed atticus schooled me on something, yet never produced where that happened (other than your imagination).

Top wages are indeed gaining over inflation. Your so called "rentier class". Everyone else is SOL.

Tsing Tao · Dec 20, 2012

Quote from Mav88:

Tsing,

the bernanke has dictated that ZIRP, and by default QE, will stop if inflation gets to 2.5%. Let's say it gets there, imagine the pressure to fudge it down.

You might say QE doesn't matter because the banks just sit on it, but remeber QE is used to buy bonds and that cash gets into the federal budget and so is inflationary. At these levels of deficit and QE, I say we have maximum 2 years left before the end of this economic system. Too alarmist? maybe but the bernanke clearly has mailed it in with this latest desperation of QE-infinity

June 2009, my how far we have fallen

<iframe width="420" height="315" src="http://www.youtube.com/embed/n6qo2S84r5w" frameborder="0" allowfullscreen></iframe>

You are absolutely correct, they will fudge inflation as best they can. They're trying it now with "Chained CPI". It's in their best interest to do that, and to keep interest rates as low as possible so debt can be issued freely.

QE most certainly matters.

Tsing Tao · Dec 20, 2012

Quote from Ricter:

It supports my experience, that wages are inflating faster than expenses.

No they're not

This was pointed out before in here.

Tsing Tao · Dec 20, 2012

Quote from Mav88:

your experience doesn't mean crap, are those wages adjusted for inflation?

No, they aren't. And even if they were, they would have been adjusted in CPI that has been manipulated to be a lot lower, for reasons discussed in the OP of this thread.