Comments on: Inflation Still a Problem, Despite “Evidence” to the Contrary http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Sat, 26 May 2012 18:05:48 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Urban Bear http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-89504 Urban Bear Tue, 29 Jun 2010 04:02:56 +0000 http://dailyreckoning.com/?p=28870#comment-89504 I think the European siblings of the Austrian Economists are correct (despite unseemly sibling rivalry), inflation is not just a function of money supply, it is the product of money supply _and_ the velocity of money. So ironically, we have deflation in large parts of the economy, with minimal goods price rises, so net deflation, because people are reducing their spending and saving more. Eventually confidence in the currency will decline so much that people no longer want to keep it long, thus the velocity of money will ramp up, causing inflation, and possibly hyper inflation! As has been pointed out, inflation can happen with Gold backed currencies too, when you take account of the velocity of money! People are still in the saving phase, so we have net deflation, but this won't last forever, so anyone with any sense should be hoarding useful stuff, while it is still relatively cheap, including a rotated food cache. I think the European siblings of the Austrian Economists are correct (despite unseemly sibling rivalry), inflation is not just a function of money supply, it is the product of money supply _and_ the velocity of money. So ironically, we have deflation in large parts of the economy, with minimal goods price rises, so net deflation, because people are reducing their spending and saving more. Eventually confidence in the currency will decline so much that people no longer want to keep it long, thus the velocity of money will ramp up, causing inflation, and possibly hyper inflation!

As has been pointed out, inflation can happen with Gold backed currencies too, when you take account of the velocity of money!

People are still in the saving phase, so we have net deflation, but this won’t last forever, so anyone with any sense should be hoarding useful stuff, while it is still relatively cheap, including a rotated food cache.

]]> By: JMR in Miami http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-80109 JMR in Miami Thu, 03 Jun 2010 16:20:19 +0000 http://dailyreckoning.com/?p=28870#comment-80109 JMR Jrod, Something Else is in ALL OUR HANDS. If you've got Gold, Guns, and Guts, that is . . . . IMHO, people should not be spending their time on trying to bail out the Titanic with soup cans. . . the ship is going down, forgettaboutit! What we should be doing is thinking about and planning for Something Else, when it inevitably occurs. Don't let the Something Else steer you, YOU steer the Something Else to be something better than we have today. It's in YOUR hands. Peace and Future Prosperity JMR in Miami JMR Jrod,

Something Else is in ALL OUR HANDS. If you’ve got Gold, Guns, and Guts, that is . . . .

IMHO, people should not be spending their time on trying to bail out the Titanic with soup cans. . . the ship is going down, forgettaboutit! What we should be doing is thinking about and planning for Something Else, when it inevitably occurs. Don’t let the Something Else steer you, YOU steer the Something Else to be something better than we have today. It’s in YOUR hands.

Peace and Future Prosperity
JMR in Miami

]]> By: Richard J McKenzie http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79478 Richard J McKenzie Wed, 02 Jun 2010 15:23:34 +0000 http://dailyreckoning.com/?p=28870#comment-79478 re: 'Inflation is still a problem...' I still have Zim dollars from my trip in June, 2001, to see the total solar eclipse from a field in Zambia (I also keep my Kwachas). We exchanged the US dollar for 100 Zim$. The Zim people at the time suffered from inflation, to be sure, but then the governing incumbents sucked the lifeblood out of the country. This is what governing incumbents do, I notice in history books. They suck away our future for their presents, and inflation roars in and everybody is unhappy who is alive. Through the years after my trip, I tracked the exchange rate while the Zim government printed more and more and the people worked less and less, especially the ones who were beaten for complaining*. Zeros were added and 100 Zimbucks became 10,000 and then 100 again and then 10,000,000 and then they added zeroes by the handful and their money couldn't buy any foreign things, not even German ink to make their money look legitimate and after that their money was just paper. After the exchange rate got about 25 or 30 zeroes to the US dollar, the numbers were meaningless to me. 9 zeroes to the trillion 12 to the quadrillion Americans have trouble with big numbers, don't they? Now that's scary. quintillion, sextillion. Sex! That number will be popular. Maybe sooner than anyone thinks. * from Zimbabwe a few years ago: "The stores are so empty, you think they sold shelves." re: ‘Inflation is still a problem…’

I still have Zim dollars from my trip in June, 2001, to see the total solar eclipse from a field in Zambia (I also keep my Kwachas). We exchanged the US dollar for 100 Zim$. The Zim people at the time suffered from inflation, to be sure, but then the governing incumbents sucked the lifeblood out of the country. This is what governing incumbents do, I notice in history books. They suck away our future for their presents, and inflation roars in and everybody is unhappy who is alive.
Through the years after my trip, I tracked the exchange rate while the Zim government printed more and more and the people worked less and less, especially the ones who were beaten for complaining*.
Zeros were added and 100 Zimbucks became 10,000 and then 100 again and then 10,000,000 and then they added zeroes by the handful and their money couldn’t buy any foreign things, not even German ink to make their money look legitimate and after that their money was just paper. After the exchange rate got about 25 or 30 zeroes to the US dollar, the numbers were meaningless to me.
9 zeroes to the trillion
12 to the quadrillion
Americans have trouble with big numbers, don’t they? Now that’s scary.
quintillion, sextillion. Sex! That number will be popular. Maybe sooner than anyone thinks.

* from Zimbabwe a few years ago: “The stores are so empty, you think they sold shelves.”

]]> By: Lost & Found http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79432 Lost & Found Wed, 02 Jun 2010 11:18:06 +0000 http://dailyreckoning.com/?p=28870#comment-79432 Which will be the next thing that you will stop believing, now that you have learned "the ugly truth about Santa Claus, the Tooth Fairy and the fiction popularly known as True Everlasting Love"? And, by the way, if "the rest of the episode is a vast panorama of misery and suffering because of the disastrous inflation in the prices of food and energy, mostly featuring pretty young ladies who have nothing to wear except tiny swimsuits" then you should not be wondering when there are probably quite some people out there supporting inflation... Which will be the next thing that you will stop believing, now that you have learned “the ugly truth about Santa Claus, the Tooth Fairy and the fiction popularly known as True Everlasting Love”?
And, by the way, if “the rest of the episode is a vast panorama of misery and suffering because of the disastrous inflation in the prices of food and energy, mostly featuring pretty young ladies who have nothing to wear except tiny swimsuits” then you should not be wondering when there are probably quite some people out there supporting inflation…

]]> By: SMR san http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79409 SMR san Wed, 02 Jun 2010 10:25:28 +0000 http://dailyreckoning.com/?p=28870#comment-79409 Dear Mighty MG I remember you declaring it several times before that CPI does not take into account prices of housign, energy and food. Now you are declaring something exectly opposite to your previous sermons. Which one is true ? SMR san "I will say that I think that the real reason that the CPI is merely rising 2.2%, and not soaring as a result of all of this money being created around the world, is because the cost of housing constitutes a full 40% of the index," Dear Mighty MG
I remember you declaring it several times before that CPI does not take into account prices of housign, energy and food.
Now you are declaring something exectly opposite to your previous sermons. Which one is true ?

SMR san

“I will say that I think that the real reason that the CPI is merely rising 2.2%, and not soaring as a result of all

of this money being created around the world, is because the cost of housing constitutes a full 40% of the index,”

]]> By: SMC http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79369 SMC Wed, 02 Jun 2010 08:15:08 +0000 http://dailyreckoning.com/?p=28870#comment-79369 Same here in Australia Ron. Bread, breakfast spreads, corn chips, all sorts of packages at the supermarket have been getting smaller for the same price. Conversely, politicians' salaries have been rising, while the benefit to the public from said charlatans has continued to plummet! How perplexing! Same here in Australia Ron. Bread, breakfast spreads, corn chips, all sorts of packages at the supermarket have been getting smaller for the same price.

Conversely, politicians’ salaries have been rising, while the benefit to the public from said charlatans has continued to plummet!

How perplexing!

]]> By: JRod http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79339 JRod Wed, 02 Jun 2010 05:20:10 +0000 http://dailyreckoning.com/?p=28870#comment-79339 Miami JMR- The problem, brother, is when was the last time something else was an improvement? By my reckoning it was in 1776 A.D. Cheers- JMR JRod Miami JMR-

The problem, brother, is when was the last time something else was an improvement? By my reckoning it was in 1776 A.D.

Cheers-

JMR JRod

]]> By: junior mogambo ranger 777 http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79304 junior mogambo ranger 777 Wed, 02 Jun 2010 03:01:42 +0000 http://dailyreckoning.com/?p=28870#comment-79304 C P I = Constantly Phony Index P.S. This Epstein guy sounds like an economic Sweat Hog (maybe his credentials were ”Signed Epstein’s Mother”) You need low employment to create high inflation? Mogambo nailed it on the head when he mentioned Zimbabwe, but the conditions also exist in South Africa (look up South African Broadcasting Corporation (SABC) and unemployment and/or inflation to research this further) In case you are keeping track at home, the mass transit system in Philadelphia PA called SEPTA, is seeking a rate hike, in spite of the fact it costs two dollars to ride the bus. Yes, you read that right, two whole bucks to ride the bus NOW, one of the highest rates in the nation, and they Still need to raise the base fare to cover their costs. Tell me again there is no inflation Government, I just love to hear you lie through your teeth. Ugh. C P I =

Constantly
Phony
Index

P.S. This Epstein guy sounds like an economic Sweat Hog
(maybe his credentials were ”Signed Epstein’s Mother”)

You need low employment to create high inflation?
Mogambo nailed it on the head when he mentioned Zimbabwe, but the conditions also exist in South Africa (look up South African Broadcasting Corporation (SABC) and unemployment and/or inflation to research this further)

In case you are keeping track at home, the mass transit system in Philadelphia PA called SEPTA, is seeking a rate hike, in spite of the fact it costs two dollars to ride the bus.
Yes, you read that right, two whole bucks to ride the bus NOW, one of the highest rates in the nation, and they Still need to raise the base fare to cover their costs.

Tell me again there is no inflation Government, I just love to hear you lie through your teeth. Ugh.

]]> By: JMR in Miami http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79297 JMR in Miami Wed, 02 Jun 2010 02:19:24 +0000 http://dailyreckoning.com/?p=28870#comment-79297 What are you guys getting so bent about? You should be cheering! This is the BEAUTY of the unsustainable. It must, by very definition, come to an end. All the scum-sucking leeches will be left to broil in the bright sunlight of Truth and for them it will be The End. After the end, well, then comes Something Else! Here's to Something Else, and here's to hoping it's a whole lot more fun than what's going on right now! What are you guys getting so bent about? You should be cheering! This is the BEAUTY of the unsustainable. It must, by very definition, come to an end. All the scum-sucking leeches will be left to broil in the bright sunlight of Truth and for them it will be The End. After the end, well, then comes Something Else! Here’s to Something Else, and here’s to hoping it’s a whole lot more fun than what’s going on right now!

]]> By: Ron Kamys http://dailyreckoning.com/inflation-still-a-problem-despite-evidence-to-the-contrary/#comment-79278 Ron Kamys Wed, 02 Jun 2010 01:08:01 +0000 http://dailyreckoning.com/?p=28870#comment-79278 My favorite loaf of German Dark wheat has been reduced from 24 oz. to 16oz., in ONE MOVE!! Oh and the price is still over the $3.00 mark. If that is a 2.2% increase, pls show me your calculations. ps-anyone notice those boxes of crackers, ( still priced the same also), are size-wise starting to resembe those "continental breakfast" size cereal boxes? Why doesn't somebody call these LIARS OUT for what they are! 2.2%??????? My favorite loaf of German Dark wheat has been reduced from 24 oz. to 16oz., in ONE MOVE!! Oh and the price is still over the $3.00 mark. If that is a 2.2% increase, pls show me your calculations. ps-anyone notice those boxes of crackers, ( still priced the same also), are size-wise starting to resembe those “continental breakfast” size cereal boxes? Why doesn’t somebody call these LIARS OUT for what they are! 2.2%???????

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