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| Grasshopper:
The same thing is happening in the UK (and I guess the rest of Europe). The government is simply printing money to keep the economy afloat. We used to be told this was the type of thing that only banana republics did. But apparently it's perfectly OK if we do it, and give it the fancy term "quantitive easing". The weird thing is that despite QE, inflation has been incredibly low for over a decade, and no one really knows why. However, there must surely be a day of reckoning. My biggest fear is that we're on the cusp of a massive housing market crash. The crazy thing is that, every time the housing market looks like it's faltering, the government implements policies to further inflate the bubble. It's like they know a crash is inevitable, but they don't want it happening on their watch... |
| fablog:
The inflation is low because the production capacity is in excess over the world. But, the inflation is high when you check in detail the prices (housing price buble for exemple). So, if you are a young person beginning his adult life, price seems very high, but not for an older person who own a house. We live the same crisis since the crash in 2000. The answer by all the government was always the same: more debt and more money printing. When you take that in account and rework the numbers, we are in a recession since a long time because when you borrow 2$ to make 1$ of growth, it's not a real growth. |
| Grasshopper:
--- Quote from: fablog on April 25, 2021, 08:10:43 am ---But, the inflation is high when you check in detail the prices (housing price buble for exemple). So, if you are a young person beginning his adult life, price seems very high, but not for an older person who own a house. --- End quote --- Indeed. That's one of the main problems. The official inflation rate (upon which economic policy is based) doesn't take into account asset price inflation (i.e. house prices, stock market, etc.). So, you can end up with a situation where the official inflation rate is less than 2% but house prices are growing by 10%. It's completely bonkers. |
| fallacy:
You can feel the inflation hitting hard now for everything. I was trying to get a very small front yard 8’ by 10 ‘deck rebuilt and I had contractors come out for a quote a few years ago and they were all quoting me $5,000. It never happened for whatever reason. The deck is not something I will use, it is just something that needs to be replaced. I decided let's try again so i called up some contractors; first off no one wants to come out to give you a quote anymore they all just say send me some pictures. Now they are coming back saying it will be 12,000 - 13,500 grand. This is the kind of prices we are seeing in just 2 years. If this was normal inflation that we are used to it should have been around $6,500 or something. |
| BadMouth:
"There is no inflation because wages haven't gone up." - the gubmint I went to Walmart to buy some cheap crappy $2 tools for a separate 3D printer workbench area and they were all priced $6. I did not buy them. |
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