Compounding takes it's toll.
https://www.inflationdata.com/inflation/Inflation_Rate/Long_Term_Inflation.asp
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Yep the fed reassuring wallstreet as usual
- Thread starter S2007S
- Start date
Compounding takes it's toll.
https://www.inflationdata.com/inflation/Inflation_Rate/Long_Term_Inflation.asp
Compounding takes it's toll.
https://www.inflationdata.com/inflation/Inflation_Rate/Long_Term_Inflation.asp
1.02^21=1.516
51.6%
Let's not forget the political side of all this.
Is Biden's America going to be an economic disaster?
hm, last 2 dem presidents, 1 left with budget surplus and the other one after 1/2 big deficits left by predecessor. Last 2 GOP presidents both left disasters after them (not Trump fault, of course, Corona shit, but his tax cuts doubled the deficit).
Clinton had a budget surplus in only 1 year, his last. It was just creative accounting, because the money was spent elsewhere and not to reduce the National Debt. When he left office, the US National debt was 4.9 trillion. Handed off the Dotcom bubble to Bush Jr., who also had to deal with 911. When Bush Jr. left office the National Debt was 9.9 trillion, adding about 625 billion a year to the N.D.. He handed handed off the financial crisis to Obama. When Obama left office the National Debt was 19.9 trillion, adding about 1.25 trillion a year to the N.D. Trump gets elected. First three years, averaged about 1 trillion a year, and then covid hits. So the Trump administration was actually spending 20% less a year, in its first three years, than the Obama administration. Trump leaves office adding 4.8 trillion to the N.D. in his last year, mostly because of pandemic. Biden gets sworn in with the N.D. at 27.8 trillion. If the trend continues, its quite conceivable that the N.D. will be north of 50 trillion if the Dems hold the White house for 8 years. There are no fiscally responsible politicians, Dems. or Reps. Just for the record, I've been a registered Independent all my voting life, since the early seventies.
The perception that there is only 2% annual inflation does not hold water. If it did, that would mean there's has been only 42% inflation since 2000, plus some compounding. Since 2000, housing, rent, utility bills, all insurances, food, and practically everything else under the sun, has at very least tripled, and that's conservative, very conservative. The governments formula for inflation is specifically designed to show minimal inflation. It has very little if anything to do with real consumer inflation. Something no one has ever posted here... is that annual raises in social security checks reflect the governments inflation rate, not the real consumer inflation rate, last year a little over 1.5%. Just imagine if everyone on social security got a 6-8% raise in there benefits every year. The social programs like S.S., Medicare, etc., would have gone down faster than the Titanic.
Another thing you should be perfectly clear on, it's not so much a Democrat or a Republican government. It is a Wall Street government, plain and simple. If either didn't need your vote to take power, they would just as soon throw you under the bus. The masses are given crumbs, while the hogs just enlarge the size of their trough.
Most computer equipment got better and costs less. Most clothing costs less. No triple there they are CHEAPER now then in the 1980s. An entry level desktop computer ( generic ) would run you almost $2K and a performance model $4-$8K. A decent TV cost $700-800. A basic cotton polo would be $40-$60. The same items now would be roughly $400-500, the TV $250, the shirt $10-$20 ( all prices in Cdn$ ).
That's 30-40 years ago, things got cheaper. You forgot to factor that into your theory. Cars are more expensive but the implied inflation on many of them is a lot less then you might think.
Which products were they again?
If the Federal Reserve was being dishonest with their numbers, that would be a bigger scandal than Enron and Theranos combined times a million.
The audacity of such a claim is ridiculous to me. And to say it with such certainty.
Hi Nine Ender, First, I said "practically everything", not everything. Second, I'm talking about essentials and necessities, not about depreciating liabilities. My bad, I should have made that more clear.Most computer equipment got better and costs less. Most clothing costs less. No triple there they are CHEAPER now then in the 1980s. An entry level desktop computer ( generic ) would run you almost $2K and a performance model $4-$8K. A decent TV cost $700-800. A basic cotton polo would be $40-$60. The same items now would be roughly $400-500, the TV $250, the shirt $10-$20 ( all prices in Cdn$ ).
That's 30-40 years ago, things got cheaper. You forgot to factor that into your theory. Cars are more expensive but the implied inflation on many of them is a lot less then you might think.
Hi Nine Ender, First, I said "practically everything", not everything. Second, I'm talking about essentials and necessities, not about depreciating liabilities. My bad, I should have made that more clear.
Durable goods are included in Core PCE.
Are you including food and energy costs in necessities? Cause those don't count for Core PCE. They are volatile in nature and thus not a good measure of inflation.
Most computer equipment got better and costs less. Most clothing costs less. No triple there they are CHEAPER now then in the 1980s. An entry level desktop computer ( generic ) would run you almost $2K and a performance model $4-$8K. A decent TV cost $700-800. A basic cotton polo would be $40-$60. The same items now would be roughly $400-500, the TV $250, the shirt $10-$20 ( all prices in Cdn$ ).
That's 30-40 years ago, things got cheaper. You forgot to factor that into your theory. Cars are more expensive but the implied inflation on many of them is a lot less then you might think.
I can buy more computing power than was on Apollo 11 for like $150.
Lmfao.I can buy more computing power than was on Apollo 11 for like $150.
The economy is fantastic. We just have to solve the problem with workers having no purchasing power due to low wages and inflation in the cost of living