The real inflation rate,and how you pay more tax.

I came across this little gem, on how the CPI is now calculated as opposed to how it was used to be calculated by the Government. What is really interesting is why. Based on the three things that underpin the economy, Asset prices , Interest rates, and Confidence .We are looking at a real inflation rate of at least ten per cent, with no rising wages to offset the decline in spending which the economy relies on. The figures suggest we have been in a real depression for ten years and its getting worse. Its amazing how this has been spun, perhaps because the economy is going down from the bottom up its easier to not notice.

a reply to: anonentity

Under Bush (8 years) the median wage rose $475.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Obama (8 years) the median wage rose $700.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Trump (3 years) between the tax cuts and wage increases (7% this year alone) median income has risen $5800.

Inflation this year was under 2%

So we're doing worse?

~confuzzled~

a reply to: anonentity

In my opinion the inflation rate is much higher, when one considers the rise in the cost of food. Case in point when they can raise the price by 25 to 50 cents on a food item or cut it's weight and charge the same price.

originally posted by: Lumenari
a reply to: anonentity

Under Bush (8 years) the median wage rose $475.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Obama (8 years) the median wage rose $700.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Trump (3 years) between the tax cuts and wage increases (7% this year alone) median income has risen $5800.

Inflation this year was under 2%

So we're doing worse?

~confuzzled~

If you think inflation's only 2% I'd like to know where you live so I can enjoy this low inflation.

a reply to: Lumenari

From the Bush years, to now most of the manufactured goods are being made in China, however you spin it a consumer economy needs money to consume. Financial engineering doesn't cut it just gives the illusion that it does.

originally posted by: PhilbertDezineck

originally posted by: Lumenari
a reply to: anonentity

Under Bush (8 years) the median wage rose $475.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Obama (8 years) the median wage rose $700.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Trump (3 years) between the tax cuts and wage increases (7% this year alone) median income has risen $5800.

Inflation this year was under 2%

So we're doing worse?

~confuzzled~

If you think inflation's only 2% I'd like to know where you live so I can enjoy this low inflation.

Montana.

We live in the 1980's when it comes to inflation.

originally posted by: anonentity
a reply to: Lumenari

From the Bush years, to now most of the manufactured goods are being made in China, however you spin it a consumer economy needs money to consume. Financial engineering doesn't cut it just gives the illusion that it does.

We as consumers have more disposable income now then we did under Bush or Obama.

I agree with you that CPI is BS... it excludes "volatile" things like food and energy.

Not like we need those, right?

I was just saying that for the first time in a long time, median wage growth is actually outpacing real inflation.

a reply to: Lumenari
Then it is an isolated spot. May I ask how much did gas go up under Obama? 2%?
In the 80's i was paying 50 cents for a loaf of bread now it's almost 3 bucks, is bread still 50 cents where you live or has it doubled, tripled?

originally posted by: PhilbertDezineck
a reply to: Lumenari
Then it is an isolated spot. May I ask how much did gas go up under Obama? 2%?
In the 80's i was paying 50 cents for a loaf of bread now it's almost 3 bucks, is bread still 50 cents where you live or has it doubled, tripled?

Not really sure, since I make my own bread....

Gas prices under Obama originally skyrocketed, then was knocked down by the Shale revolution.

Through no fault of his, obviously.

The point I was trying to make is that we are making more now as an average American then we were 3 years ago, which offsets inflation.

Which we will always have until we no longer have a Federal Reserve...

But that's another topic entirely, is it not?

a reply to: Lumenari

Median wage rose 5800 under Trump??? I have my doubts about that.

originally posted by: PhilbertDezineck
a reply to: Lumenari
Then it is an isolated spot. May I ask how much did gas go up under Obama? 2%?
In the 80's i was paying 50 cents for a loaf of bread now it's almost 3 bucks, is bread still 50 cents where you live or has it doubled, tripled?

Reagon was president in the 80s.
Over 30 years ago you paid fifty cents for bread.

a reply to: anonentity

I'll be the first to say that I don't know much about economics.

What I do know is that my paycheck is larger, I have more in savings, I have more in my retirement accounts, and I have more stuff, my coin collection has grown.

Totally anecdotal, but if this is a depression, keep it coming because I'm making bank!

originally posted by: Joecanada11
a reply to: Lumenari

Median wage rose 5800 under Trump??? I have my doubts about that.

Of course you do.

CNN didn't report it.

If you want the real numbers, between wage growth, lowered taxes and deregulation for small businesses, the number is closer to $10,000.

Before you spout off, do your own homework.

Inflation is always tricky as it often depends on what you are measuring and your relative position in the economy.

Some people are doing very well. However, if you have a career in a field with stagnant wages, then things most certainly feel more expensive.

On the other hand, you also have to look at quality of goods as well. Some things seem more expensive dollar for dollar, but you are often getting a higher quality good, particularly when you talk about technology goods. You have better tech and it is cheaper. If you compare the typical Honda Civic from 1990 vs a 2020 model it is night and day in terms of quality and features.

Healthcare and education have certain risen well above wages. So have many taxes.

a reply to: Lumenari

What does this have to do with CNN. I don't bother with them at all. You made an extraordinary claim without evidence. That's why I doubt it.

this guy has a great channel

I like his videos on the repo market, it's a matter of time right now before we find out which banks are insolvent

my theory is DB or JPM right now are the 2 big banks that are facing serious issues, daddy Powell isn't telling the truth but it's coming out soon

originally posted by: PhilbertDezineck

originally posted by: Lumenari
a reply to: anonentity

Under Bush (8 years) the median wage rose $475.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Obama (8 years) the median wage rose $700.

Actual inflation was 2% a year for 8 years...

Americans lost purchase power.

Under Trump (3 years) between the tax cuts and wage increases (7% this year alone) median income has risen $5800.

Inflation this year was under 2%

So we're doing worse?

~confuzzled~

If you think inflation's only 2% I'd like to know where you live so I can enjoy this low inflation.

2% inflation is you follow government CPI not actually looking at data, that's a completely ridiculous assertion

a reply to: toysforadults

I am thinking its D.B. as well. The big boys have been pulling a billion a day out. Because of the globalized banking structure, they would of distributed their assets around the world to borrow the cash. So when a bank wants to use them as a loan, the Fed has to intervein because if DB goes bust overnight they are left holding the can. Remembering that the loan on these assets are conditional on repurchase. If DB is allowed to collapse then confidence is lost and the share market goes down. So it will be a lot of printing, which can go on until it doesn't. The problem is that the easy money has pushed up asset prices, decreased interest rates, which has lowered the credit rating over the borrower, and their ability to service loans, so the interest rates have to fall again and again, to the point where any intervention is no good. Because people loose the ability to spend the whole lot stops.

a reply to: anonentity

www.ft.com...

JPMorgan Chase has pushed more than $130bn of excess cash into long-dated bonds and cut the amount of loans it holds, marking a major shift in how the largest US bank by assets manages its enormous balance sheet.

Funny, Jamie Dimon has been doing all of these interviews lately, I smell something funky happening at JPM. Those JPM put options and bear call spreads be looking mighty tastey right now

Volume on SPY has been garbage lately... wonder who's been sitting on the sidelines...

originally posted by: Joecanada11
a reply to: Lumenari

What does this have to do with CNN. I don't bother with them at all. You made an extraordinary claim without evidence. That's why I doubt it.

that's normal, get used to it, you won't find very many people in these threads actually making much of an argument, not a lot of intelligence around here anymore