Goldtent TA Paradise

Inflation Chart

1. Northstar says:

   May 19, 2019 - 10:05 am at 10:05 am

   Thanks Ken. Downside looks tiny compared to upside here. Feels like a generational low to me.

2. silverboom says:

   May 19, 2019 - 10:22 am at 10:22 am

   I wonder what stats are used to calculate such stuff as this.

   Deflation? Give me a break. In real life, the cost of what it takes to live – groceries, utilities, rent, INSURANCE, healthcare…it has all gone up steadily since the Great Recession. Despite the ongoing slump in agriculture prices in the markets, meat is more expensive, vegetables more expensive, grains more expensive, fruit more expensive. Oh, and if you are in the car/truck market, nothing but blue sky in pricing. My 2014 F150 similarly equipped today is $18K more. Yeah, it’s got some more technology, but so friggin’ what – engine the same, drive train the same, space the same. My electric bill? Only goes up, never down. Internet/cable? Only up, never down. This year was a 10% increase in internet hook-up. As I told the sales guy, so I am paying more for something that has not changed or improved in any way? Is that right? Yup, he says. That’s the way it is. RV park fees? Up 40% in three years. Car and truck registration? Up it goes. My health insurance coverage (supplemental as I am retired) up 30% this year. This idea of deflation is utter nonsense. The day I start seeing prices actually going down for what I pay for day in, day out, THEN and only then will I buy into the deflation scenario. And baby, it ain’t happening. If inflation is coming back it’ll be time to start buying dog food to stay alive.

3. silverboom says:

   May 19, 2019 - 10:24 am at 10:24 am

   Oh, I forgot to mention: oil changes. When I bought my truck in 2014 I could get a coupon-priced synthetic blend oil change for $29.95. Today, same company, same oil, different coupon: now $44.95

   Deflation my ass.

4. silverboom says:

   May 19, 2019 - 10:31 am at 10:31 am

   Okay, one last thing and I’ll sit down and shut up. One thing HAS gone up to offset all these price increases. My SS monthly payment went up 2%. After 3 years of zero increase. ALL numbers are cooked to the benefit of the top 1% – 10%. There is no accurate reading of inflation/deflation/unemployment etc etc etc. It is all bunk. All that is real is how much money you have to drag out of your wallet to make a purchase, including stocks.The divide between the haves and have nots is only getting worse and worse. The skids are greased for a repeat of the French Revolution and it ain’t gonna be pretty.

   • Steins1 says:

     May 19, 2019 - 11:19 am at 11:19 am

     Thanks SB, all very good points!

   • Karl says:

     May 19, 2019 - 4:27 pm at 4:27 pm

     At least in the US–

     Fees. Taxes, in many U.S. jurisdictions.

     The heavy, heavy increased price of increased time trying to get a problem solved by some governmental or corporate bureaucracy (for example, time spent trying to get to talk to someone who can actually solve a problem, especially one that isn’t routine). The ways problems are increasingly shifted on to the populace at large. (For example, even frail sick people have to prepare for increasingly procedures at home and recover — as opposed to being cared for by nurses).

     The increased price paid for commuting by car in increasingly bad traffic jams in many cities.

     Of course, deceptively smaller packages, often food of junkier quality for approximately the same price.

     Probably a lot more of indirect increases in inflation I will think of right after hitting the Post Comment button.

5. Northstar says:

   May 19, 2019 - 11:36 am at 11:36 am

   Good points SB – see my latest post above. Might be time to get that dog food…

6. RTV says:

   May 19, 2019 - 3:18 pm at 3:18 pm

   lol! All great comments! And great chart – I will use this in my toolbox…

7. pedro_deleon says:

   May 19, 2019 - 3:50 pm at 3:50 pm

   This is off Martin Pring’s indicators. So it would be nice to see a brief summary of how he constructs them.

   He’s also a diligent technician.
   So he’s probably aware … in this context … of what inflation means.
   Even if the general public, and even the average investor, is not.

   Inflation and deflation are NOT about consumer prices.
   They are about the money supply and credit. (You can ask Steve Saville too.)

   So a chart like this says to me “Deflationary Pressures” (probably from the debt buildup)
   are slowly overwhelming the gimmicks employed by the Central Bankers to battle Deflation.

   Consumers and households like deflation, as it makes their real earnings grow.
   Bankers do not, as it undermines the collateral they take in against their loans.
   Bankers hate deflation so much that they got the Federal Reserve Act passed in 1913.
   Deflation was largely the prevailing trend before that.
   That’s when people generally enjoyed a rising standard of living, worldwide.
   (Including even Argentina!)
   After 1913, it was the banks that enjoyed the relative prosperity ..

   • RTV says:

     May 19, 2019 - 4:07 pm at 4:07 pm

     Exactly!
     3 components make up the economic/financial world we were born into. If you don’t understand the difference between each – you don’t understand the world in which you live. They are:

     1. Money
     2. Currency
     3. Credit

     • Northstar says:

       May 19, 2019 - 4:48 pm at 4:48 pm

       1. Gold
       2. USD or any other Fiat crap
       3. The solution to all our problems, lol.