World, Writing, Wealth discussion

Graeme wrote: "Just a reminder.

Inflation was measured differently in the 80's to what it is now. If we use the older metrics, inflation is higher than what current metrics report.

https://www.shadowstats.com/a..."

They were also change dint he 1980's for the very same reason. Reagan changed it for both unemployment and inflation to show better numbers.

Just a reminder.

Inflation was measured differently in the 80's to what it is now. If we use the older metrics, inflation is higher than what current metrics report.

https://www.shadowstats.com/alternate...

I think the old metrics are closer to reality, hence why the new metrics were adopted - to gaslight our loss of purchasing power.

Indeed, Barbara. I did not mean to imply anything greedy about this example, but i was trying to point out there are extra features that will make the fight against inflation more difficult. Prices for things like olive oil went up and down when money was real, such as when trade was in pieces of silver or gold and people have to accept such price changes

It's true that changes in climate affect crops and livestock, which can lead to shortages and even famine. If you track this, you will see that it's happened throughout history - one of the worst climate change episodes was in the 6th century, several in the 17th and 18th centuries. Nothing new. With the olive oil, it's not just that the recent crops have been poor but that the demand has grown very high.

There are some real reasons for price increases. The price of olive oil here has doubled in the last year, but apparently the effects of climate change, or the erratic weather, have spoiled much of the world olive oil production.

"Shrinkage" immediately reminded me of that Seinfeld episode :-) I have a perfect example. I just opened a bag of frozen breaded shrimp to put in the toaster oven. I've always cooked half of the bag (10 shrimp) but tonight half of the bag is 9 shrimp. Same price, though :-(

I have also seen "shrinkage" in a lot of bagged stuff in the produce aisle and frozen foods, but also noticing another kind of "shrinkflation" - canned and jarred stuff (soup, spaghetti sauce, etc) definitely seem watered down a lot more.

Exactly.

Ian wrote: "....materials shot up in price because there was a boom and a shortage of supply. Basic economics. The problem is now when there is no shortage the prices remain high...."

Looks like basic economics are geared towards only one direction

On the grocery aisles, I am definitely seeing "shrinkflation" - the price is the same, but the quantity is less. I have heard the joke going around that soon your dozen eggs is only going to be 11.

Another point about our inflation. For a while building materials shot up in price because there was a boom and a shortage of supply. Basic economics. The problem is now when there is no shortage the prices remain high. Prices go up for various reasons but you don't see them coming down, at least not here

Oh, I didn't mention the rise in cost for insurance on my car and house and property. That's bad enough, but grocery prices have increased by 30%. Where it really hurts, though, is in prices for services and repairs. The people who provide these things are dealing with inflation and passing it on to us, plus adding more because they know we have no alternatives. Either fix your car or you don't have transportation. Either fix your plumbing or your toilet doesn't flush. It's basically extortion.

Here the major inflationary costs are insurance costs, health (because demand greatly exceeds supply) and local government charges.

Salaries aren't increasing enough to offset inflation of goods (especially food) and services (try getting someone to fix your clothes dryer for less than a couple of hundred dollars). I recently paid my car guy more in labor than the parts cost ($841 to replace a chrome bumper on my truck.) Looked it up online and the highest price for the bumper was $250. So he charged an exorbitant price for labor. I told him to put the old bumper in the truck bed. Maybe I can get $50 for it. This economy is encouraging mercenaries.

I read all kinds of reports. What I do see is that salaries increased faster than the consumer index price. I recognize that gas and groceries are more expensive, but when minimum wage is as high as it is then everything goes up.

I also see a nation recouoping from the pandemic. So increases are the result of a lot ore than just our government.

I also see the value of my investments the past few years as compared to the Trump or Obama years, and those numbers are better.

Is that car blue or green? Eyes see things differently, so what do we go by? My eyes see different things from yours.

I dislike the choices both parties are giving us for president. Once again, our election will be less about who is best and voting for the least worst choice.

The quote is, "Who you gonna believe, me or your own eyes?" Not lying eyes

Scout wrote: "I'm sensing, Papa, that you're sympathetic with my opinion of Biden. Didn't get your reference to Marx Brothers. Before my time -- and maybe before yours?"

Long before my time, but it is a classic quote from a classic comedy.

The specific quote:
https://youtu.be/cHxGUe1cjzM?si=es_Kj...

I've heard that quote often, and use it myself.

I'm sensing, Papa, that you're sympathetic with my opinion of Biden. Didn't get your reference to Marx Brothers. Before my time -- and maybe before yours?

Ian wrote: "Scout has my sympathy. Talk about an obscure quote. I had never heard of the film, let alone the quote."

Ian..... Now it all makes sense....8^)

Scout has my sympathy. Talk about an obscure quote. I had never heard of the film, let alone the quote.

Scout wrote: "I guess so, if you believe Biden."

Uh Scout, I think you miss the humor. To believe Biden, you have to disbelieve what you are actually seeing. You do not know the quote? It is from an old Marx Brothers film Duck Soup.

I guess so, if you believe Biden.

Scout wrote: "Like many others, I believe what I see at the grocery store, the gas pump, the rise in labor prices for repairs, even the rise in prices when I take my dog to the vet. Also the higher cost of healt..."

So you believe your lying eyes...8^)

Like many others, I believe what I see at the grocery store, the gas pump, the rise in labor prices for repairs, even the rise in prices when I take my dog to the vet. Also the higher cost of health insurance and also to insure what little I own, as well as property taxes. Many people have resorted to paying bills with credit cards, another big problem. The interest rates these companies charge should be illegal. Remember that old term usury -- "the illegal action or practice of lending money at unreasonably high rates of interest." It should still apply, but no one's questioning these interest rates.

Scout wrote: "Papa, please tell me what this means. "What are you going to believe, Biden's numbers or your lying eyes?""

Do you believe Biden and what he says or what you are seeing?

Impossible to explain something that makes no sense.

Papa, please tell me what this means. "What are you going to believe, Biden's numbers or your lying eyes?"

Of course, there are lies, damned lies, and statistics....

REF: https://www.shadowstats.com/alternate...

We used to officially count inflation one way, now we count it a different way, and in the process of change from the former to the latter we make our administrators look good...

Hence why the change was made.

Arguably, real inflation is higher than what is reported and has been for decades.

J. wrote: "Governments have a bad habit of creating cartels and monopolies."

Neofascist (globalist) monopoly capitalism in action.

"Look to the framework and all will be revealed!"

Even CNN just can't anymore.

Fact check: Biden again falsely claims inflation was 9% when he became president
https://www.cnn.com/2024/05/14/politi...

Scout wrote: "Here's what I don't understand. The Biden Administration keeps putting out these great numbers on the economy, yet we know prices on everything are higher. What's going on?"

What are you going to believe, Biden's numbers or your lying eyes?

Gaslighting.

The economy has a number of factors. Politicians choose those that favour them. Maybe Biden is claiming employment is better?

Here's what I don't understand. The Biden Administration keeps putting out these great numbers on the economy, yet we know prices on everything are higher. What's going on?

Meet Economic Advisor to the President, Jared Bernstein.
https://en.m.wikipedia.org/wiki/Jared...

I want this pain to end.
https://youtu.be/1Fj0zRmEWYc?si=ar83c...

Thanks for the links, Nik. It's definitely not a simple process to print money. The Board of Governors of the Federal Reserve gives the order to print or create money digitally. There are 7 members on the board, appointed by the President for 14-year terms. This board reports to Congress. Not to the citizens. That's why we don't hear about money printing. The Board doesn't have to tell us what they're doing. They don't report to the people directly, and it looks like Congress doesn't want us to know what's going on. I'm not clear on how the board determines when and how much money to print, or if they're influenced by politicians. I'm tired now, and maybe someone else can check that out. And how the Fed was created and who made the rules?

Scout wrote: "This is something I've been wondering about: Are citizens informed when the government prints money to cover debts? Have you ever seen an article or any announcement when the printing presses are c..."

In our case I think it is the Federal Reserve Board that makes that decision.

Scout wrote: "This is something I've been wondering about: Are citizens informed when the government prints money to cover debts? Have you ever seen an article or any announcement when the printing presses are c..."

It's a very good question. It's beyond simple printing, which happens too, but creating new money is way larger than that.
Printing of banknotes: https://www.federalreserve.gov/paymen...
Creation of money: https://www.investopedia.com/articles...
The reason you and others don't know or have any say about it is that they don't deem you need to be privy. "Pundits only", patronizing and undemocratic as it is

I don't know about the US, but here, it was announced at the start of the Covid crisis and I think most people accepted it. They also expected that to stop once people went back to work, but it didn't. The government kept printing, and we only found out about this much later, I think when the next financial statement required by law here came out. We assume it was the senior politicians who did it because it had to be agreed by Cabinet .

This is something I've been wondering about: Are citizens informed when the government prints money to cover debts? Have you ever seen an article or any announcement when the printing presses are cranked up? Who orders more money to be printed? Does the president influence this decision? We all know more money is being printed, but is the public informed when this happens? If not, why not?

I would agree if you replaced "governments" with "politicians". Cui bono?

J. wrote: "Governments have a bad habit of creating cartels and monopolies."

I'd rather define it differently: "Governments are paid to look the other way". Therefore antitrust is more or less neutralized

True. In amongst their desire to run printing presses to be able to spend more

Governments have a bad habit of creating cartels and monopolies.

Nik wrote: "Behind every inflation there those who actually raise prices, oftentimes without any reason but greed"

Competition is supposed to deal with that. If someone has excess supply, lowering prices grabs a larger section of the market. Cartels and monopolies have to be dealt with, though.

Scout wrote: "Will there be a revolution at some point? Not trying to incite one, just wondering how long people will put up with their hard-earned money being wasted or being spent carelessly while busting thei..."

No,

At most there will be a throw the bums out election.

Behind every inflation there those who actually raise prices, oftentimes without any reason but greed

I think the current inflationary times are generated quite simply by politicians spending money they haven't got, and running the printing presses to get it. Quite simple, really. The politicians are more interested in getting elected than controlling inflation.