Quote:
Originally Posted by mespe
The CPI is a joke, common now food isn't included, fuel isn't included. After I posted that commodities post, I've read a little more and it appears EVERY commodity was up in 2010. Wheat, corn, all metals, by OVER 10%.
Wages always lag inflation. You are going to pay more for the cup of coffee, until you get a raise. If it gets bad enough, you will get raises every couple of months.
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I don't know if you are old enough to remember the 70s, but that was actual inflation and it didn't look anything like what we are experiencing today. Interest rates were in the 15% range, the cost of everyday goods was rising steadily, real estate was crazy, people were getting 10% raises twice a year just to stay even with the new college grads. There was enough growth that people/companies were willing to borrow capital at those rates just to get in the game. No-one was interested in commodities because there were too many other places to invest.
What we have today is just the opposite, the only thing moving is commodities and that is due to a combination of speculation and people hiding their money there to get some type of decent return. Actual inflation is something like 1%, but it is difficult to even get that in a safe investment. The folks who are fear mongering about inflation either are trying to sell something (like gold coins) or they have no idea what they are talking about.