So this Govt data is true, but all other Govt data is false? >>
The point the author was making was that the stuff above is a very large % of what he spent in 2014. Sure, there are things on the "official" BLS numbers that went down....probably energy prices, appliances, clothing, computers and TV's. My savings in 2014 on those 5 items was <$800....nearly all of it energy (gas + heating oil). Haven't bought a major appliance in over 10 years. And even averaged out over their typical life of 10-20 years, it isn't a lot of savings. Taxes and govt fees don't show up on the BLS list, and those tend to usually go higher. The "other " govt data is official/true too....but it doesn't come close to off-setting those items that I spend most of our money own. It's great that raw commodity prices have come way down the past 3 years (softs, energy, grains, metals, etc.). Too bad very little of that actually shows up in the final "finished" prices paid by the consumer. Yeah, raw grains are "way" down in price per lb., and what I pay for them at the store has never been higher....lol.
Received a new prescription today, the most expensive thing I've ever taken in my life....by a factor of >3X - $9.10 per pill taken daily....$3321 annually. I'm hoping that it doesn't work for me so I can try something else. There are no generic substitutes for it. Funny how that is.
Too bad very little of that actually shows up in the final "finished" prices paid by the consumer. Yeah, raw grains are "way" down in price per lb., and what I pay for them at the store has never been higher....lol.
Thats a pretty good argument for the stock market to be higher. Lower raw material costs and higher selling prices equals fat margins.
"Cheap money sends a “borrow and spend me” signal to the markets, just as expensive money (i.e., high interest rates and government surpluses) says “save and invest me”. So when money is made artificially cheap by cluelessly expansionist governments, it leads people to overborrow and overbuild.
The resulting overcapacity leads to price cuts as marginal producers sell for whatever they can get just to keep the lights on. Falling prices for individual products in the aggregate create systemic deflation. In other words, we’re getting exactly what we should have expected from “inflationary” policies — which is deflation."
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
Been a year and they're still floating the economy with new money. Money likely to crash first.
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
Been a year and they're still floating the economy with new money. Money likely to crash first.
Quit blaming poor prognostication on something other than what it is.
The only good investment strategy is to assume nothing, to discount the prognosticators, to spread your market risk over time, and then to invest your boing-yoing off in PMs.
FIFY!
Q: Are You Printing Money? Bernanke: Not Literally
Comments
I like basing my opinion on cartoons.
Made it all the way down without falling. Whew.
Knowledge is the enemy of fear
<< <i>
<< <i>Inflation over the past year (official BLS data):
Beef and veal +22.5%
Ground beef +21.0%
Steaks +14.9%
Pork +7.4%
Ham +11.5%
Whole Chicken +6.1%
Fresh Fish +3.5%
Eggs +8.2%
Cheese +7.8%
Fresh Vegetables +4.3%
Lettuce +12.2%
Tomatoes +9.6%
Coffee +6.7%
Butter +19.5%
Restaurant food +3.1%
Housing +2.9%
Hotels +7.6%
Owners Equivalent Rent +2.6%
Homeowners Insurance +5.6%
Electricity +2.5%
Water & Sewer +5.5%
Home Repairs +4.4%
Footwear +2.6%
Car Insurance +5.0%
Parking Fees & Tolls +2.3%
Medicinal Drugs +4.2%
Prescription Drugs +5.6%
Hospital Services +4.3%
Veterinarian Services +3.2%
Sporting Events +3.6%
Newspapers & Magazines +4.6%
College Tuition +3.6%
Educational Books & Supplies +6.5%
Grade School & High School Tuition +4.0%
Childcare & Nursery School +3.0%
Postage +3.6%
Cigarettes +2.5%
Financial Services +5.7%
Tax Return Prep +9.3% >>
So this Govt data is true, but all other Govt data is false? >>
The point the author was making was that the stuff above is a very large % of what he spent in 2014. Sure, there are things on the "official" BLS numbers that went down....probably energy prices, appliances, clothing, computers and TV's. My savings in 2014 on those 5 items was <$800....nearly all of it energy (gas + heating oil). Haven't bought a major appliance in over 10 years. And even averaged out over their typical life of 10-20 years, it isn't a lot of savings. Taxes and govt fees don't show up on the BLS list, and those tend to usually go higher. The "other " govt data is official/true too....but it doesn't come close to off-setting those items that I spend most of our money own. It's great that raw commodity prices have come way down the past 3 years (softs, energy, grains, metals, etc.). Too bad very little of that actually shows up in the final "finished" prices paid by the consumer. Yeah, raw grains are "way" down in price per lb., and what I pay for them at the store has never been higher....lol.
Received a new prescription today, the most expensive thing I've ever taken in my life....by a factor of >3X - $9.10 per pill taken daily....$3321 annually. I'm hoping that it doesn't work for me so I can try something else. There are no generic substitutes for it. Funny how that is.
Thats a pretty good argument for the stock market to be higher. Lower raw material costs and higher selling prices equals fat margins.
Knowledge is the enemy of fear
Give Me Liberty or Give Me Debt
Easy Money = Overcapacity = Deflation
"Cheap money sends a “borrow and spend me” signal to the markets, just as expensive money (i.e., high interest rates and government surpluses) says “save and invest me”. So when money is made artificially cheap by cluelessly expansionist governments, it leads people to overborrow and overbuild.
The resulting overcapacity leads to price cuts as marginal producers sell for whatever they can get just to keep the lights on. Falling prices for individual products in the aggregate create systemic deflation. In other words, we’re getting exactly what we should have expected from “inflationary” policies — which is deflation."
Read the link to find out what happens next.
Give Me Liberty or Give Me Debt
Crude Parallels: A River of Denial
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
Knowledge is the enemy of fear
Crude Parallels: A River of Denial
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
Been a year and they're still floating the economy with new money. Money likely to crash first.
Give Me Liberty or Give Me Debt
Crude Parallels: A River of Denial
" As we saw in 2008-09, oil liquidations were entirely appropriate for economic conditions; how can “everyone” deny outright something even slightly similar?"
Been a year and economy didnt crash. Only thing denied in the authors article was knowledge. The messenger should know better by now.
Been a year and they're still floating the economy with new money. Money likely to crash first.
Quit blaming poor prognostication on something other than what it is.
Knowledge is the enemy of fear
Give Me Liberty or Give Me Debt
The poor prognosticators underestimated the willpower of the money printers.
Yeah, those darn, evil ........THEM!!!
Knowledge is the enemy of fear
postage rates for the first time in 97 years.
Just when I was stacking "first class forever" stamps, the USPS is lowering
postage rates for the first time in 97 years.
Yeah...I recall someone here at one time saying they could be a good investment statagy.
May still be someday for someone.....not me.
Here's a warning parable for coin collectors...
FIFY!
I knew it would happen.