9/18/07 - A Sad Day For America

Discussion in 'Economics' started by aeliodon, Sep 12, 2007.

  1. Semrad


    But the inflationary gauges CPI and PPI exclude food and energyso that leaves metal, housing and tuitions.

    Well housing is a bubble that will settle and tuition, well free economy.

    So our economy is doing great.

    Psych!!! Here comes the rate cuts to bail out the basterds who bought houses on interst only loans while suckers like me who rented hoping the housing prices to go down so I can put 20% down and get a decent mortgage are being screwed royally without any lubricants cause you know what all the dollars I saved up aren't even worth using as toilet paper.
    #11     Sep 12, 2007
  2. Bob111


    wake up... we pass this one already few weeks ago...
    #12     Sep 12, 2007
  3. What do you mean?

    #13     Sep 12, 2007
  4. fusionz


    no many poor and middle class mostly have debt, so high inflation is a good thing.
    #14     Sep 12, 2007
  5. Only thing that's not inflating is wages. Corporate America, in cahoots with congress, makes sure that the earnings surpluses never trickle down to the little guy.

    High inflation is not going to eradicate consumer debt. It will only make consumers MORE dependent on consumer lending to service the day to day necessities of life.

    In your language, that would be

    "inflation = bad, makes poor and middle class more in debt".

    #15     Sep 12, 2007
  6. I feel sad for anyone making minimum wage. I always argued that minimum wage should be tied to inflation. Not because i give a damn about poor people, but it will give real incentive for everyone to fight inflation.
    #16     Sep 13, 2007
  7. You're logic is illogical. Inflation = Good news for people with excessive debt... for example, the US Government will be running a balanced budget sonner than anyone expects.
    #17     Sep 13, 2007
  8. you're not hearing me. I am arguing that assets and commodities have and continue to inflate, while wages remain static. The equivalent would be wages falling over time with the cost of living remaining flat.

    With the real value of wages falling, the income consumers receive will service less and less of their existing and new debt. Specifically, this means that as costs rise and wages remain stagnant, consumers increase their use of credit to both service old debt AND create new debt by financing a costlier lifestyle.

    With the power of compounding working against him, Joe Middleclass will be drowning in a sea of interest and finance charges when inflation rears its ugly head.

    #18     Sep 13, 2007
  9. mangod


    Ben is just a central bankers puppet.. direct your anger at the real criminals.. Rothschilde's Schiff's Warburg's Morgan's etc
    #19     Sep 13, 2007
  10. In the minds of paranoid tin-foil hat wearing perma bears.
    #20     Sep 13, 2007