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dont blame brandon........for this inflationary spiral


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#11 Rogerdodger

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Posted 11 November 2021 - 11:03 AM

Maybe this explains my point better:

 

I still have my first W-2. I was paid $0.90 per hour.

The minimum wage went to $1.00 an hour effective February 1967 for newly covered nonfarm workers.

Today the federal minimum wage for covered nonexempt employees is $7.25 per hour and nobody will even work for that little!

So if the government buys it's own 30 year bonds at near zero interest and pays it back in 30 years, they did pretty well considering the actual devaluation of the fiat paper money.

 

 

Inflation.jpg


Edited by Rogerdodger, 11 November 2021 - 11:55 AM.


#12 Douglas

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Posted 11 November 2021 - 12:44 PM

Fiat money hides the amazing deflation in the real cost of things since 1960 due to technological innovation.  If you could just fix the FED, prices of just about everything would fall steadily.  Take the list above.  Apples cost about 0.163 ounces of silver a pound in 1960 and about 0.1 ounce today.   My first car with no AC, no seat belts, no air bags, etc. cost 2500 ounces of silver, today a similar car would sell for 600 ounces of silver if even that.  Computers and similar electronics have deflated so fast that their cost even in fiat funny money has fallen.  The 360/155 computer that I first worked on in college cost $1,000,000.  Today $50 at a junk store will buy a computer 1000 times more powerful.  Technological advancement should be delivering steadily falling prices enabling working folks to share in the wealth and have better and better lives.  Instead we have the FED curse of inflation with most of the wealth flowing to the top 1% who own inflating assets.  Of course the government couldn't continue to run infinite deficits buying all the lovely things they provide like endless wars.  Imagine a balanced budget. 

 

Regards,

Douglas



#13 OEXCHAOS

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Posted 11 November 2021 - 12:52 PM

 

The real reason inflation is transitory - Tim Ghriskey on 'technological deflation'

 

Headline CPI inflation surged to 6.2% in October, the highest level since 1990. However, prices are unlikely to stay elevated forever, as technological innovations will create a more cost-efficient economy, said Tim Ghriskey, senior portfolio strategist at Ingalls and Snyder.

"We're in this technological revolution. I think it’s greater than the industrial revolution from over a century ago. The innovation continues, and we’re going to just continue to see costs come out of companies, and companies being run more efficiently,” Ghriskey told David Lin, anchor for Kitco News. “I think that technological deflationary factor is huge and going to continue.”

On gold, Ghriskey calls it the “anti-investment.”

“It’s a fear investment. When you think everything is going to fall apart is when you put money into gold. There are people that hold it forever. I have a hard time believing that that’s really a good thing, because if we’re in Armageddon and you take your hunk of gold out to a farm and I’d like to give you this for a bunch of your crops, I’m not sure farmers would make that trade,” he said.

 

I'm thinking shotgun shells, AR ammo, and bourbon would be better SHTF currency...


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#14 Rogerdodger

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Posted 11 November 2021 - 07:54 PM

amazing deflation in the real cost of things

 

Throwaway things made in China by slave labor.

My folks had the same fridge for decades.

Now my grand daughter makes a fortune selling warranties for appliances because they are built to quickly fail.

 

How many working but "outdated" T.V.s, cell phones, laptops, dot-matrix printers, crt displays "have" to be bought every year because we must have the latest?

 

computers.jpg


Edited by Rogerdodger, 11 November 2021 - 08:18 PM.


#15 Douglas

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Posted 12 November 2021 - 06:10 AM

Most poor are renters and don't have the luxury of owning their own home.  Less than half of working poor own their own home and many of those inherited it so don't have a mortgage.  They also largely work in jobs with fixed income so inflation eats away at their standard of living.  Until the FED, the effects of deflation due to technological improvement held the cost of living flat.  The FED changed all that and is THE principle cause of the huge wealth gap that has developed which is tearing at the fabric of society.  Inflation is the enemy of the poor and the benefactor of the landed, asset rich.   Fixing this mess is going to be terribly painful.

 

DUC2MXe.png

 

Regards,

Douglas



#16 da_cheif

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Posted 12 November 2021 - 11:52 AM

been there before.....who remembers the WIN button......whip inflation now......the 70s   ...nixon everyone hated.....oil problems......china on the front page....   been there done that ........and all at the beginning of the next leg up of the monster bull mkt