The Stagflation: It's Heeeerrre

[boedicca]

9% over four years is very low inflation, if you predicted high inflation then you were flat our wrong.

Just wait until the Chinese insist on a proper interest rate to roll over the debt.

Also, CPI significantly understates real inflation.

Ok, explain the differences and why you claim it understates. Details, now, now, not your usual empty assertions.

Based on the 1980 methodology, we're actually running closer to 10% inflation right now.

Alternate Inflation Charts

You realize no one has ever managed to duplicate Williams' numbers, right? He doesn't reveal his methodology and he cannot actually be using the old methodology because he wouldn't be able to get the raw data. The best anyone can figure out is that he's just tacking on an arbitrary amount

You do realize that during the Obama era, energy prices have more than doubled - and food inflation is extraordinarily high (that's what happens when we burn Food For Fuel).

It hurts lower income people worse than those of us who make more money.

Here's The Real Cost Of Food Inflation In America - Business Insider

And of course you disregard ShadowStats. It doesn't support the propaganda you consume as a large part of your diet.

 

[pinqy]

Just wait until the Chinese insist on a proper interest rate to roll over the debt.

Also, CPI significantly understates real inflation.

Ok, explain the differences and why you claim it understates. Details, now, now, not your usual empty assertions.

Based on the 1980 methodology, we're actually running closer to 10% inflation right now.

Alternate Inflation Charts

You realize no one has ever managed to duplicate Williams' numbers, right? He doesn't reveal his methodology and he cannot actually be using the old methodology because he wouldn't be able to get the raw data. The best anyone can figure out is that he's just tacking on an arbitrary amount

You do realize that during the Obama era, energy prices have more than doubled

All energy? No. Gasoline? Yes, and the CPI reflects that. So tell me again how it's understated.

and food inflation is extraordinarily high (that's what happens when we burn Food For Fuel).

well, that depends on the specific food, but again, shown in the CPI.

And of course you disregard ShadowStats. It doesn't support the propaganda you consume as a large part of your diet.

No, that's the reason you or anyone accepts shadowstats. Because it supports your politics. I prefer the truth. And the truth is that w hike certainly the CPI methodology can be argued, argued is NOT politically influenced, and shadowstats numbers just can't be supported.

 

[SteadyMercury]

On average Americans spend about 6-7% of their income on food, it isn't a major driver of inflation.

It is kind of funny how threadstarter rolled in screaming "told you so!" and pinqy has reduced him to to babbling about volatiles and alternative measures he has decided are better.

 

[Votto]

The Dow seems unphased by the news.

It won't be phased until the Fed starts raising rates. Right now the money flows freely like wine, and companies have mastered the art of streamlining and are turning record profits in a demand starved economy.

There's zero reason for the stock market to do poorly right now. It's completely disconnected from the regular economy.

That's right. Don't forget that "W" put us all here as well.

Corporate America is purposefully sabatoging the economy so that Americans will kick out Obama. So there is only one thing to do. Obama must put his boot on their neck and press in!!!

There, that was easy.

 

[Toddsterpatriot]

That's great. CPI increased by 9% while wages have declined.

9% over four years is very low inflation, if you predicted high inflation then you were flat our wrong.

Just wait until the Chinese insist on a proper interest rate to roll over the debt.

Also, CPI significantly understates real inflation.

Based on the 1980 methodology, we're actually running closer to 10% inflation right now.

Alternate Inflation Charts

Shadowstats isn't a good source. He doesn't collect any of his own data, just adds a number to the government data.

 

[Freemason9]

This does not fit the definition of "stagflation" because of the absense of significant inflation. A person could argue that inflation is understated--I might even agree--but that upward "inflationary" pressure on consumer prices has been around for a very long time. It predates Obama.

I would suggest we DO have a stagnating economy, though. That again has little to do with Obama, and much to do with replacing human workers with technology. Although this reduces costs for companies, it removes humans from payrolls and thereby decreases consumption/sales. Without mitigation, this will eventually undermine our capitalist economy that relies upon demand to produce economic activity (and, of course, profits). Given the state of technological innovation, I see no chance of unemployment ever falling below 6% again.