General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsNew inflation rate numbers at 7:30am CST...
Currently at an ultra low 1.7%--final number for 2016 is 2.17%
So...Cheeto walks in the door Friday with:
1. A very LOW National unemployment rate
2. A stable economy
3. The DOW which has skyrocketed under Obama
3. Years of low gas prices
4. Almost no inflation
5. Affordable Health care for ANYONE,not just the privileged
How long will it take Cheeto to throw it ALL in the dumpster???
Javaman
(62,530 posts)a kennedy
(29,658 posts)madokie
(51,076 posts)we'll start seeing all those numbers start dropping. Hide and watch
safeinOhio
(32,676 posts)mortgage the farm to invest in the new economic miracle?
Rage4Bacon
(43 posts)or the actual prices in say.. a Big Mac. They have a vested interest in under reporting CPI.
http://www.shadowstats.com/alternate_data/inflation-charts
?hl=ad&t=1481816550
http://capstoneinvest.com/inflation-cpi-and-the-big-mac-taking-a-bite-of-reality/
Bengus81
(6,931 posts)But pretty damn accurate on most stuff. When playing baseball in 1963 we had a brand new MD open near the ballpark. Back then as everyone knows a burger was 15 cents. Using the inflation calculator I have is shows the price inflation adjusted price from 1963 to 2016 should be 1.17 on that 15 cent burger today.
Looking on the MD website you can get a cheeseburger for 1.00. Sure...maybe a Big Mac is much more popular and has risen more than reported inflation--personally I don't buy them nor did I buy ridiculously priced Beanie babies when that craze went out of control. Both would have risen more than reported inflation but that's just the way it is with certain products.
When you have a monopoly in town like we do with COX communications yeah...their RIP OFF price structure goes up by 2/3/4 times inflation. They always raise prices on the Feb bill so mine should only go up about 2.25 per month. It won't,it will go up by 5.00 bucks or more.
Rage4Bacon
(43 posts)The Big Mac index was developed because it included capital inputs from numerous sources (most cheeseburgers dont include lettuce, tomatoe, etc..). That said, fast food is somewhat on the decline, with 1 out of 5 Millennials never haven eaten a Big Mac (https://www.thrillist.com/eat/nation/millennials-mcdonalds-big-mac-study). So if anything, the prices should go down relative to inflation - everything else being equal.
Still, it doesn't negate the fact that using the standard method of calculating inflation used in the 90s (and prior), we would be running close to 6%. Again, they have a vested interest in under-reporting inflation. I'm sure if you were in control of the printing press, you would want every excuse possible to allow you to keep spending. If their target really is 2%, then they would have been unable to finance the existing debt levels and we would have never had as much money printing as we have had.
It's pretty obvious though that we can't keep pushing the debt higher and higher forever. Sooner or later, the rest of the world will figure out we are exporting our inflation and stop wanting dollars. Once the big move to sell dollars gets underway and it starts to collapse, all the holders will start rushing for the door at the same time, it's going to get ugly quick,