Jump to content
House Price Crash Forum
BandWagon

Fact And Fiction About Inflation

Recommended Posts

Some nicely discussed issues here:

First, let us get one thing clear. The official figures are not low because of a cunning switch from the old inflation measure, the Retail Price Index, to the new-fangled Consumer Price Index. As our chart shows, it is true that CPI inflation is 0.6 percentage points lower than RPIX inflation, but the gap has not been unusually large recently. Moreover, other measures of inflation, such as the gross domestic product deflator, are in a similar ballpark to the CPI.

A second gripe is that the inflation figures systemically exclude one of the biggest items of expenditure - housing. Over the past 10 years, for instance, average house prices have risen by 12 per cent a year, according to Nationwide. Even over the past year they have risen by 5 per cent.

Haven't we all heard the arguments against targeting asset prices?

The CPI inflation figures are far from perfect but they are not grossly wrong. My concern now, and the concern of the authorities and the markets on both sides of the Atlantic, is not about whether inflation is being under-recorded but about whether the measured inflation rate is going to rise further

I'm not so sure about their (Capital Economics) inflation forecasts.

As Roger Bootle must know, making accurate predictions is hard, especially when they're about the future.

http://www.telegraph.co.uk/money/main.jhtm.../23/ixcoms.html

Edited by BandWagon

Share this post


Link to post
Share on other sites
Guest Alright Jack

Inflation is an increase in the total stock of money and credit.

Inflation is NOT rising prices.

Deflation is a decrease in the total stock of money and credit.

Deflation is NOT falling prices.

Governments redefine the term inflation as a means to deflect blame / suspicion / attention from the real cause of rising prices.

Questions to ask yourself,

Why would the government go to the extremes of using force (threat of violence / imprisonment etc.) to make its citizens accept worthless paper / digits in exchange for their real produce / services?

There is a reason why things are put into place, and a net benefit. Who benefits from currency debasement, clearly not the public in general.

In what world are falling prices a bad thing? Falling prices means cheaper stuff. How can this be dangerous.

Its oldest trick in the book. And the excuses for it are as lame as ever. But to read the clear brainwashed nonesense of many guys on here talking about core rates, and RPIX and bank of england inflation targetting is just gobsmackingly frightening.

Share this post


Link to post
Share on other sites
Inflation is an increase in the total stock of money and credit.

Inflation is NOT rising prices.

Deflation is a decrease in the total stock of money and credit.

Deflation is NOT falling prices.

Governments redefine the term inflation as a means to deflect blame / suspicion / attention from the real cause of rising prices.

Questions to ask yourself,

Why would the government go to the extremes of using force (threat of violence / imprisonment etc.) to make its citizens accept worthless paper / digits in exchange for their real produce / services?

There is a reason why things are put into place, and a net benefit. Who benefits from currency debasement, clearly not the public in general.

In what world are falling prices a bad thing? Falling prices means cheaper stuff. How can this be dangerous.

Its oldest trick in the book. And the excuses for it are as lame as ever. But to read the clear brainwashed nonesense of many guys on here talking about core rates, and RPIX and bank of england inflation targetting is just gobsmackingly frightening.

Ummmm......

Share this post


Link to post
Share on other sites

Inflation is an increase in the total stock of money and credit.

Inflation is NOT rising prices.

Deflation is a decrease in the total stock of money and credit.

Deflation is NOT falling prices.

Governments redefine the term inflation as a means to deflect blame / suspicion / attention from the real cause of rising prices.

Questions to ask yourself,

Why would the government go to the extremes of using force (threat of violence / imprisonment etc.) to make its citizens accept worthless paper / digits in exchange for their real produce / services?

There is a reason why things are put into place, and a net benefit. Who benefits from currency debasement, clearly not the public in general.

In what world are falling prices a bad thing? Falling prices means cheaper stuff. How can this be dangerous.

Its oldest trick in the book. And the excuses for it are as lame as ever. But to read the clear brainwashed nonesense of many guys on here talking about core rates, and RPIX and bank of england inflation targetting is just gobsmackingly frightening.

Actually - he is correct!

Go and view: www.financialsense.com

Might raise a few eyebrows!

Share this post


Link to post
Share on other sites
Guest Alright Jack

Actually - he is correct!

Go and view: www.financialsense.com

Might raise a few eyebrows!

Thanks!

Jim Puplava is definately a recommended from me too. There are loads of others who are making sense of all this cobblers too. Congressman Ron Paul knows his stuff too.

eg

http://www.house.gov/paul/tst/tst2006/tst071706.htm

And the gold bug community are wetting themselves now that this currency fraud is finally starting to unravel.

Share this post


Link to post
Share on other sites
Guest Alright Jack

Central banks create inflation.

Central banks do not fight inflation.

Gold and Silver are money.

Nothing else is.

Share this post


Link to post
Share on other sites

Inflation is an increase in the total stock of money and credit.

Inflation is NOT rising prices.

I would agree with you on that.

We have inflation when the supply of money rises faster than the supply of goods and services in th economy.

But how do we then measure inflation in a way that is fair to the public in general?

How do we know when there's too much money, or too little?

Share this post


Link to post
Share on other sites

Thanks!

Jim Puplava is definately a recommended from me too. There are loads of others who are making sense of all this cobblers too. Congressman Ron Paul knows his stuff too.

eg

http://www.house.gov/paul/tst/tst2006/tst071706.htm

And the gold bug community are wetting themselves now that this currency fraud is finally starting to unravel.

My pleasure - you are only telling them the truth.

Very few people really understand macro ecomonics - money supply issues etc and hardly anyone understands that the TRUE reason why property prices in 'most' western nattions have risen so high is simply due to the increase in money supply.

The average person just thinks property prices 'go up' because of supply & demand - which is partly correct of course - but not the real reason.

With the cheap money supply about to dry up (Japan) there will be some significant increases in interest rates to prevent confidence in currencies from evaporating - then the REAL pain will start for those who borrowed too much.

The best thing you can do is: save and stay out of debt!

Cheers.

Share this post


Link to post
Share on other sites

With the cheap money supply about to dry up (Japan) there will be some significant increases in interest rates to prevent confidence in currencies from evaporating - then the REAL pain will start for those who borrowed too much.

Which countries do you think will survive better than others?

Share this post


Link to post
Share on other sites
Guest Alright Jack

I would agree with you on that.

We have inflation when the supply of money rises faster than the supply of goods and services in th economy.

But how do we then measure inflation in a way that is fair to the public in general?

How do we know when there's too much money, or too little?

It's all academic, government shouldn't be counterfeiting in the first place. But whilst we're on the subject, the change in M4 is the true measure of inflation. It is the total stock of money and credit in the system.... Why do you think that the FED recently abolished their equivalent measure M3?

Share this post


Link to post
Share on other sites

Which countries do you think will survive better than others?

Difficult to say - but my best guess is those countries which don't have a property bubble:-

Some choices would include: Germany, Malaysia, Singapore, most of South America etc.

Anywhere 'Anglo Saxon' is well over priced!

Cheers.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.