Forum member inflation report.

derryb

You just need to learn when to buy and when not to.

Justacommeman

@derryb said:
You just need to learn when to buy and when not to.

Most people like in 95% need to learn when to sell That's the hardest part. Buying is easy

m

derryb

If people knew when to buy and when not to, selling at a profit would not be the hardest part.

Coinstartled

@renman95 said:
Pineapples at my local Safeway....$7! So do I drive to Walmart where I can get 'em for just under $3? It would cost me almost a gallon of gas roundtrip and gas is $2.78. And then there's the time involved. Is my effort worth the difference of a buck-twenty-two? The wear and tear on the vehicle? Insurance? Too two to much stress, I'll have my umbrella-drink w/o the pineapple wedge today.

7 bucks per fruit..
Is an insidious rate..
Maybe you should move..
To the 50th state!

King Wapatui Shave!!

Baley

Do not drive all the way to wal mart, buy a single pineapple, and then drive all the way home. That would not be efficient.

Instead, buy other items there, on which you also save money per unit, in addition to the pineapple. Then, when you sit down to perform the calculus on your expenditures, the extra cost of the fuel and vehicle depreciation and your personal time for the longer trip will be more than offset by the dollar savings on your total purchases.

The feeling of behaving in a rational fashion will be a bonus, as you sip that tasty drink afterwards.

You are welcome, glad to let you in on this secret technique.

derryb

Neat inflation calculator

it takes $9.27 to now buy what $1.00 would buy when I was born.

RedneckHB

$6.95 today buys what 75c did during the Korean War. Interesting that those are both the minimum wages during their respective times. I know, I know, min wage is 7.25....so workers might be better off today, I was just trying to give benefit of doubt.

derryb

would consumer/personal debt be at an all time high if wages were keeping pace with inflation? Maybe the jobs aren't keeping pace with inflation.

RedneckHB

@derryb said:
would consumer/personal debt be at an all time high if wages were keeping pace with inflation? Maybe the jobs aren't keeping pace with inflation.

Sure. People have the wants and why not borrow with low rates. Debt burden is actually as a decade low. I would more question the strength of the economy if debt was not up given low rates as that would be a sign of very low confidence and apprehension.

We have an abundance of jobs, but not willing workers due to govt subsidies such as welfare and unemployment handouts.

derryb

Let's be honest about that "decade low" consumer debt burden.

More debt equals better economy? Like housing debt in 2008? It's good til it ain't.

Coinstartled

@cohodk said:
$6.95 today buys what 75c did during the Korean War. Interesting that those are both the minimum wages during their respective times. I know, I know, min wage is 7.25....so workers might be better off today, I was just trying to give benefit of doubt.

Inflation is at least 12 to 1 since the early 50's. 15 to one more likely. No Obamacare tax hit either for the low wage earners of the earlier era.

RedneckHB

@Coinstartled said:

@cohodk said:
$6.95 today buys what 75c did during the Korean War. Interesting that those are both the minimum wages during their respective times. I know, I know, min wage is 7.25....so workers might be better off today, I was just trying to give benefit of doubt.

Inflation is at least 12 to 1 since the early 50's. 15 to one more likely. No Obamacare tax hit either for the low wage earners of the earlier era.

Derryb''s like above disagrees with you. If it's good enough for him then it's good enough for me.

derryb

@cohodk said:

@Coinstartled said:

@cohodk said:
$6.95 today buys what 75c did during the Korean War. Interesting that those are both the minimum wages during their respective times. I know, I know, min wage is 7.25....so workers might be better off today, I was just trying to give benefit of doubt.

Inflation is at least 12 to 1 since the early 50's. 15 to one more likely. No Obamacare tax hit either for the low wage earners of the earlier era.

Derryb''s like above disagrees with you. If it's good enough for him then it's good enough for me.

Well, keep in mind that it is a BLS calculator. I still think it's kinda neat even if it might be skewed.

RedneckHB

@derryb said:
Let's be honest about that "decade low" consumer debt burden.

More debt equals better economy? Like housing debt in 2008? It's good til it ain't.

From your link...

More broadly, the economic picture looks far less precarious than it did in late 2008. The amount of monthly income that Americans must spend paying off their debt is smaller, and employment is flush

I think that confirms my decreased debt burden contention.. Surely some folks took on took much student debt...too bad for them, not the rest of us. And many companies will repay student debt as part of hiring agreements.

Student loan debt is not nearly as large as mortgages nor is it a systemic problem.

RedneckHB

@derryb said:

@cohodk said:

@Coinstartled said:

@cohodk said:
$6.95 today buys what 75c did during the Korean War. Interesting that those are both the minimum wages during their respective times. I know, I know, min wage is 7.25....so workers might be better off today, I was just trying to give benefit of doubt.

Inflation is at least 12 to 1 since the early 50's. 15 to one more likely. No Obamacare tax hit either for the low wage earners of the earlier era.

Derryb''s like above disagrees with you. If it's good enough for him then it's good enough for me.

Well, keep in mind that it is a BLS calculator. I still think it's kinda neat even if it might be skewed.

Ask a farmer how much he gets for a bushel of corn or wheat today vs 30 years ago.

VanHalen

@cohodk said:

@derryb said:
would consumer/personal debt be at an all time high if wages were keeping pace with inflation? Maybe the jobs aren't keeping pace with inflation.

We have an abundance of jobs, but not willing workers due to govt subsidies such as welfare and unemployment handouts.

Not willing workers is a big part of the problem. When you're unskilled and have to earn $30k/year to justify giving up your free rent, utilities, food, insurance and smartphones it's a big problem.

Uncle Sam hands out the equivalent of $2k+/month to any U.S. citizen willing to sit at home and watch TV.

derryb

@cohodk said:

Ask a farmer how much he gets for a bushel of corn or wheat today vs 30 years ago.

and then compare that to what it now costs him to produce it.

RedneckHB

@derryb said:

@cohodk said:

Ask a farmer how much he gets for a bushel of corn or wheat today vs 30 years ago.

and then compare that to what it now costs him to produce it.

Does that inflation or deflation?

derryb

UIG, created by the staff of the New York Fed is a broad-based measure of inflation that includes consumer and producer prices, commodity prices and real and financial asset prices. The New York Fed staff concluded that UIG detects cyclical turning points in underlying inflation and has a better track record than the consumer price series.

RedneckHB

Looks quite benign. Hope it pucks up?

derryb

sovereign bond yields are rising world wide. Regardless of what the mouth pieces tell us this is an excellent indicator of rising inflation. Central banks continue (again, regardless of what the mouth pieces tell us) to pump 100+ billion liquidity monthly into the markets ($60+ trillion of new debt since 2007, most at zero or near zero rates).

If bond yields are allowed to continue to rise many countries will find themselves insolvent. Look for central banks, at the direction of the BIS (central bank of the central banks and controlled by Washington), to make the difficult choice of ending current money infusion at the risk, and likelyhood, of crashing world wide stock markets.

Their only alternative is to Let the bond bubble blow up, destabilizing the entire financial system and rendering most governments insolvent.

"Put simply, if the choice is:
1) Let stocks drop and deal with complaints from Wall Street…
Or…
2) Let the bond bubble blow up, destabilizing the entire financial system and rendering most governments insolvent..."

"Central Banks are going to opt for #1 Every. Single. Time."

jedm

@cohodk said:

@derryb said:

@cohodk said:

Ask a farmer how much he gets for a bushel of corn or wheat today vs 30 years ago.

and then compare that to what it now costs him to produce it.

Does that inflation or deflation?

Then ask the farmer how many bushels he produces every season compared to what his grandpa did.

RedneckHB

I hope we--the world--finally sees some higher rates and gets this global economy moving.

derryb

@cohodk said:
I hope we--the world--finally sees some higher rates and gets this global economy moving.

$60+ trillion in QE liquidity couldn't do it, although it kept the patient alive. Higher rates will kill the patient. Central Banks know this.

RedneckHB

@derryb said:

@cohodk said:
I hope we--the world--finally sees some higher rates and gets this global economy moving.

$60+ trillion in QE liquidity couldn't do it, although it kept the patient alive. Higher rates will kill the patient. Central Banks know this.

I sorry you don't see the economy is better today than 8 years ago.

I suppose I would only see darkness if I was buried in non-productive assets and followed ignorance and fear mongers though. So sad.

Coinstartled

New York Times is $3.00 in the Southwest. Tripled in 20 years with a recent 20% bump.

Fake news is not cheap!

VanHalen

@derryb said:

@cohodk said:
I hope we--the world--finally sees some higher rates and gets this global economy moving.

$60+ trillion in QE liquidity couldn't do it, although it kept the patient alive. Higher rates will kill the patient. Central Banks know this.

The Fed has stated 3 rate hikes are coming in 2018 and 2 more in 2019. That would (at 25 basis points apiece) double the current Fed Funds rate to 2.5% next year! It will be interesting to watch this pan out and is hard to imagine it actually happening.

RedneckHB

Does anyone know what the 2yr, 5yr, 10yr and 30yr treasury rates are currently?

derryb

@cohodk said:
Does anyone know what the 2yr, 5yr, 10yr and 30yr treasury rates are currently?

2.06, 2.45, 2.64 and 2.91 all on the rise.

RedneckHB

@derryb said:

@cohodk said:
Does anyone know what the 2yr, 5yr, 10yr and 30yr treasury rates are currently?

2.06, 2.45, 2.64 and 2.91 all on the rise.

Dang those are low rates.

Anyone know the long term historical rate on th 10yr?

derryb

low rates are keeping the patient on life support, going on ten years now. Time to pull the plug?

RedneckHB

Why the cutesy nonsense? Life support, patient, pulling plug...

Don't you know the economy will only die when there are no people?

derryb

The patient on Federal Reserve life support is Wall St./Big banks. Economy will always exist. . . in some form. When the FED is faced with a choice between keeping bond yields (inflation) under control or continued transfusions to the patient, Washington will dictate which way to go. Washington does not want to pay 6%+ on its mountain of debt.

RedneckHB

How is Wall Street or the big banks on life support?

6% is a hell of a long way from 2%.

We are all still waiting for this hyperinflation (or is it deflation) youve been bantering about for years.... honestly I cant tell what your position is as you contradict yourself so frequently.

Bottom line....economic growth is good. A little inflation is good. Seems we have and have had both for a few years now. Open your eyes.

derryb

@cohodk said:
How is Wall Street or the big banks on life support?

The FED cash punch bowl.

6% is a hell of a long way from 2%.

In the late 70's it was 5%. By 1980 it was 20%. Interest rates easily travel a long ways in a short period of time.

We are all still waiting for this hyperinflation (or is it deflation) youve been bantering about for years.... honestly I cant tell what your position is as you contradict yourself so frequently.

I don't use the word hyperinflation, but rising bond yields tell us the low rate party is nearing its end.

Bottom line....economic growth is good. A little inflation is good. Seems we have and have had both for a few years now. Open your eyes.

"A little inflation is good?" "A little cash devaluation is good" is what your money printers have fooled you into believing. While a little inflation is better than a lot of inflation, no inflation is best.

RedneckHB

While a little inflation is better than a lot of inflation, no inflation is best.

ABSOLUTELY WRONG!!!

Please show me an economy that has flourished with zero inflation. Please, please, please prove me wrong.

If this belief is your foundation of economics, then it is quite evident why your immeasurably wrong views of the economy have been so well demonstrated.

RedneckHB

_@cohodk said:
How is Wall Street or the big banks on life support?

The FED cash punch bowl_

Again with cutesy euphemisms? WTF does mean?

Please provide a comparison of banks balance sheets and income statements showing how the banks are in worse condition than a decade ago--when apparently they were not on life support.

derryb

Banks are in great shape, thanks to $Trillions of FED QE. Where do you think they would be today without it?

RedneckHB

So are banks in great shape or on life support?

derryb

They are in great shape because they are on life support. Pull the FED plug and they go down.

jmski52

https://usawatchdog.com/

Nomi Prins seems to have some credentials in banking and some good points to be made.

I am concerned about the interconnectedness and opaque nature of the whole financial system. Other than that, it's all good.

Besides, she's kinda hot. (And quite bright, if you listen to the interview.)

VanHalen

I heard Jamie Dimon got a nice raise last week. Many of us could live a comfortable lifestyle on his 5.4% increase. Inflation isn't worrying the CEO of JPMorgan Chase.

In case you missed it_marketwatch.com/story

derryb

@jmski52 said:
https://usawatchdog.com/

Nomi Prins seems to have some credentials in banking and some good points to be made.

I am concerned about the interconnectedness and opaque nature of the whole financial system. Other than that, it's all good.

Besides, she's kinda hot. (And quite bright, if you listen to the interview.)

Nomi Prins: "The Fed Is Scared To Death Of Crashing The Global Financial System"

RedneckHB

@derryb said:
They are in great shape because they are on life support. Pull the FED plug and they go down.

Lmfao!!!

I see your understanding of medicine is comparable to that of economics.

People who are scared usually make terrible decisions or analysts. Newsletter writers should remove emotion from their writings.

jmski52

Cohodk, can you certify that the banks are in great shape? I don’t believe that I can.

derryb

@jmski52 said:
Cohodk, can you certify that the banks are in great shape? I don’t believe that I can.

Accounting rules were officially changed after the last crisis to prevent any accurate certification. It's all "magic" numbers now.

And yes coho, banks are surviving on free money and low interest rates - FED medication. They have been holding the FED hostage with a threat of a financial meltdown. Rising bond yields (interest) are about to put the banks on notice.

Coinstartled

Subway dropped the price of a basic sub from $6 to $5 in my market. Unusual as the minimum wage has taken some massive hikes recently.

metalmeister

My property taxes went up 2%. But they go up 2% every year. California. However my auto registration went up 48%. California new law. And I have 5 vehicles. Ouch!

RedneckHB

@VanHalen said:
I heard Jamie Dimon got a nice raise last week. Many of us could live a comfortable lifestyle on his 5.4% increase. Inflation isn't worrying the CEO of JPMorgan Chase.

In case you missed it_marketwatch.com/story

Not defending Dimon, but just > @jmski52 said:

Cohodk, can you certify that the banks are in great shape? I don’t believe that I can.

Like my certification would mean anything?

All I know is that I'm going to ask my Dr to put me on life support so I'll be doing great.

VanHalen

Easy to certify that Dimon's in great financial shape. A billionaire in fact.