CF, I know you think there is currently "no" inflation because the government's numbers say so.
I'm curious about where you live and whether or not your own buying power has been hit hard the last few years. Mine sure has.
Gasoline flirts with all time highs. My water/sewer service has gone up an average of six percent a year for several years in a row.
The electric utility has raised rates three times in the last two years. Ditto trash service.
My house insurance has gone up thirty percent in four years. Almost ditto on the property taxes for same house.
Hamburger is nearly double a couple of years ago. Did you notice that they cut the size of ice cream from 64 to 56, then to 48 ounces without lowering the price? Yogurts got so small that they wouldn't even provide a decent single serving and I quit buying them completely.
Did you notice them cut the width of toilet paper? Then cut that width a second time? And increase the diameter of the cardboard tube it's wrapped around at least twice?
My favorite 16 oz package of chips has been downsized four times and is now 10.25 ounces. The price didn't go down.
My cable tv/internet goes up between four and eight percent every year.
My golf club membership has gone up three years in a row, total of almost 35%. Because their costs (gas, fertilizer, etc) have risen so much.
But there's no inflation. Especially if you ignore the "core" "volatile" stuff like food and energy, that comprises a huge portion of the normal Joe's monthly outlay.
But I am comforted by the govt's inflation numbers. Not. I guess they must be held down by the housing deflation...even though 98% of us aren't trying to currently buy a house.
Nope, my buying power has been heavily impacted by inflation in the last few years. Much of it veiled by steady prices and smaller sizes. (The government can surely notice that. Or not?)
It isn't hyper-inflation. Not even close. The fact that it hasn't shown up yet does not make you right in saying it won't. I don't expect it to show any time soon. I do expect it, though. (I know.... I'm dead WRONG.) Years of easy money, gargantuan debt, etc will eventually lead to monetization of said debt. Or something even worse.
But don't take my word for it. (And I know you won't.)
All this happening while saver's interest income has been literally decimated.
Cheers,
D&O
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