Annie
Diamond Member
- Nov 22, 2003
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The bubble burst, the net worth is so far down, if things ever turn around, it will be at least 15 years to get back. That segment though, while it hit most folks hard, is not going to be a worry at all regarding inflation. Indeed, the negative and stability of that negative, makes it an unfair weight on all the other pressures rising to take what little is left of folks income-you know, the 'left over money' to pay that mortgage on the house that isn't worth what one is paying. Or to buy food, which is way up. Or clothing, same as food. Etc.The inflation rate currently stands at 2.3%, lowest point this year and the average for the last 10 years is 2.6%. The highest rate was in 2008 at 3.85% and the lowest in 2009 was -.34% Please explain why you think we are entering a period of stagflation with inflation rates so low and the rates trending downward. The last stagflation in the US was in 1980 with inflation reaching 13.58% and unemployment at 7.5%.
http://inflationdata.com/inflation/inflation_rate/historicalinflation.aspx
Take out housing deflation, count energy and food, that would be inflation. The wrong items are included and missing from the index.
Why on earth would you take out housing? Almost everyone I know spends 15-20% of their income on housing. It accounts for 14% of GDP. There is absolutely no reason whatsoever to take this out, unless you are trying to manipulate the numbers to show high inflation.
Everyone knows why energy isn't included, it is incredibly volatile. You want energy included? Then you must be prepared to admit for the last month we have been in a deflationary period as energy prices have been tumbling. Which is exactly the opposite of what you are trying to prove.