i.e. a convenience whipping bytch - it's nice to be able to vent on someone even if he didn't invent the idea.

If you look at this graph you will see that it has been going on longer than you imply and has not let up and there is no sign that it will let up. Also looking at the graph you will see that spending really went ballistic during the Reagan years.

It wouldn't let me upload a gif so this one sorta makes the same point.

Twitch,
informative, but slightly misleading. CONGRESS controls spending; not Presidents. The President may submit a budget, and lobby for it, and twist arms, but in the end its CONGRESS who spends the money.

__________________
1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags

There are too many suspect yardsticks used today and wild cards to get a clear picture. All I am and have been certain of is excessive or basically most serious debt expansion by federal governments and states is going to ultimatly drive inflation. There is no free lunch in those areas.

I do not know your circumstances. In some cases we can make individual compensations that work out and leave us even better off than we were.
In some cases perhaps not. We have to deal with what we actually individually experience.. Not statistics that can be tweaked to represent a desired number. Our national rate and projection in Canada is 2.5 percent annuly.

The real additional troublesome component is that it also compounds year over year. The reality is also this does not include many things like food etc. So for the average person it is a totally bogus figure. I have not run the numbers for the past year but it feels like our cost of living jumped about seven percent to me during the last 12 months. Certainly more than five percent. We changed nothing in the past year that would normally reduce or expand our general cost of living that I can think of. My seven percent guess may have been far too optimistic as well.

Every individual has a different situation to some degree. We as a family have fortunatly room to manouver if it becomes a requirement to do so. I expect inflation to be about an average of at least five percent continuiously for the immediate future in north america in real dollars at the family level for the time being.

This to be in areas like food, utilities, insurances and misc other unavoidable areas. It will be less in some catagories and still much more in others.

Energy and heavily involved items from an energy standpoint I would especially expect to exceed the five per cent area easily. So logically it might be wise if possible to do sensible things to reduce dependancy or reduce your requirement on it. As long as it is cost effective to do so. The smart money such as it is is to pre empt things to stay ahead of the masses initially.

Catch up is hard in comparison.

Yes, of course. The R's are the ONLY ones who have ever not balanced a budget. If Reagan had balanced the budget at that point in time, the cold war would still be going on or have already ended in a bang. Would you prefer that?

Thank goodness that the Republican congress from 94 to 2000 did INDEED balance the budget after the cold war was settled.

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2001 SLK 320 six speed manual
2014 Porsche Cayenne six speed manual

Annoy a Liberal, Read the Constitution

Good chest thumping but little truth.

Russian oil exports explain the whole story. Illegal drug markets speak volumes. Reagan is little more than a smudge in whole scheme of USSR history.

You guys who think the Congress it so damn effective, tell me, where in the hell are they now?

Not sure who said Congress was "effective", but with what would you replace it? A little tyranny with you as Supreme Leader?

__________________
1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags

Neither do government workers. And there's a hiring freeze.

Even Dick Cheney is using coupons at the IGA!

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6

Agreed, no free lunch.

I think we have to examine our life style.

Do I need to watch TV on my phone? and on my PC? and on my Cable? and in my car?

Why do I have to have all four of these types of access?

Why do I NEED a $400 telephone that replaces my laptop and my desktop and my tablet??

I know a guy who lives alone, has a great house, and has eight TVs all hooked up to cable and is complaining about his cable bill.

He's got cable TV is his unattached garage, which he does not enter during the entire winter.

About 50% of the stuff we "have to have" is really a perk or a luxury.

I bought one new 21" digital TV because I can't watch more than one at a time, and in a year, the rental of the new digital adaptor box would pay for a newer TV.

My neighbor bought three TVs, because the current ones are two years old. Huh?.

Why?

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6

Some people are just driven to consume. It may not be their fault as literly billions have been spent to induce them to do so. In a way I do not mind as they keep the economy going such as it is.

My guess as well is the average guy with more televison sets than he can use may not have formed or formatted any system of money control. so when circumstances tighten he may always be a victom. Optomisim should always be tempered with reality. Even simple animals plan for changes and circumstances beyond their control in advance. If they do not occur they prosper. If they do they cope. If they did not plan they might pay the ultimate penalty. A miserable social net is the humans fall back situation. It probably was starvation as well at one point in history.

Then the epidemic of consumer credit used by people that do not really understand it is another factor.Selling tomorrow for today was never wise when alternatives exist to reach the same position. There at one time where debtors prisons. This was replaced by personal bankrupcy. Not much stigma now as it is generally an awareness that many people cannot control themselves at all.

I knew many where getting into trouble years ago when car prices where posted as so many dollars bi weekly etc. People where financing everything and still are.

People just stopped being concerned and planning things as long as they could make the payments. They actuallly thought the current circumstances where going to last forever. We did experience a long run of general prosparity. As the general population where poorly equiped for the flip side. A lot of people got and are going to get hurt.

I am not certain how things are going to work out eventually.I did ask my proffessor once why economic principals etc where not really taught in school to all levels. They are a component of life everyone uses.

As a direct result of this ongoing important lack in the educational system. Many get past adolecence not really understanding how things work and are somewhat victomised by their lack of knowledge.

We where taught fundemental economics at the kitchen table over supper by my parents. With our own four children I taught them the same way. Plus made absolutly positive by example to include showing how things where done. Their general success in life may also be genetic from their mothers side. She is very smart.

The Fed's policy is intentionally inflationary, to counter house deflation.
It probably has contributed to the inflated prices of oil, gold,stocks etc.

On the bright side inflation makes it easier to pay off the deficit or any debt.

Problem is that home deflation happened very unevenly (i.e. little to nil in downtown areas including NYC) while inflation hits everyone in the US evenly. Which is why I'm looking for rental property outside of NYC so I can reap the damages of inflation and benefits of deflation equally.

In areas like relativly close to where I live. The populations are shrinking. You can pick up houses in those areas for basically very little. I do mean next to nothing. Perhaps free basically with some of them if you know your way around well enough.

At the same time where I live in Canada. The prices have not stopped increasing for the last thirty years. .

Actually a person that rents in my area is not using their head. If I were a young guy and would be willing to drive twenty miles to work. I could get a specific house I know of right now on eight acres of land backing on the ocean. With a twelve foot high basement three bedoom house about 25 years old for perhaps about what that huge basement would cost to install today.

A lot along the ocean side could be sold as a cottage lot. This would more than recoup the initial cost if only one was sold. Minumin size requirement of any lot touching the ocean is now at least a couple of acres. Plus a right of way to it would have to be factored in.

The house needs work but the essentials are in good shape. I really should buy the place but do not wish to rehab another house and live that far out myself. The poured very deep basement with outside access is still a real asset for someone like myself.

The house is also a very large bungalow with a terrible inside layout. It would have to be pretty well gutted to increase the insulation factor to meet the times and change the internal layout. Although the plumbing and electrical are in excellent shape. The place also needs doors and windows as wooden framed ones where used initially. You cannot get away with that here. They rot fast period... All must be vinyl. It would take perhaps fifty thousand in materials and my labour to get that house and property up to what I think it should and could be.

The landlord always does not seem to prevail in any hearings before the provincial landlord tennant act hearings. So resale or personal occupation would be a requirement. Rental of it is out of the question. Property taxes would be about 2-3 k a year as they are based on replacement costs basically. That house would be really something when done. It has the physical size and presence plus a staggering view. Worth about 1.5 to three million in a larger city area in my opinion as is if not more.

Reality is if we could put wheels on our own house and move it to a city area it would be worth a lot of money. I know we would not stay in it with the city type property taxes it would attract. Even if the local towns boundaries ever got extended out past us and it is a remote possibility we would sell.