The reason we’re not seeing inflation like we should is because people are panicked and not spending. Inflation is defined as too much money chasing too few goods. (Hyper inflation is people bailing out of currency as a store of value and into assets.) Our collective bunker psychology (caused by Obamacare and the job market) is keeping prices lower than they should be. But we do have inflation. I’m sure you’ve noticed in the grocery store. Cars, despite their high cost, are a relative bargain. They haven’t gone up nearly as much as food.
Smallish loaf of bread yesterday 4.79.
Swiss cheese 22.95 a pound. Gas 3.69 a gallon regular, 3.89 ethyl at cheapo station. Breakfast (no orange juice ) with tax and tip at small diner 22.70. One bedroom apartment rents in marginal neighborhood ( pretty much ok to walk in daytime if you keep your wits about you; stay in at night) 2900 and climbing. 3600 in a safer area. But no, there’s no inflation. Because the fed govt doesn’t include these things in its “ inflation statistics “. Everything’s wonderful. The Obama regime is in power. What could possibly be wrong?
Inflation has been cured by changing the metric: food and energy are no longer included in the inflation rate. However, even this doesn’t account for the lack of inflation that should be expected from the Fed’s infinite Q.
The only reason that I can see is that the money really hasn’t entered the economy. It is traded directly between the fed and select banks who then buy the debt and play the splits on the interest. Net effect: NULL except for the increase in debt.
The amazing (IE: totally unrelated to real growth or innovation) stock market is more of the fedgov mutual masturbation. Is there anyone who worked for Goldman who isn’t on the other side of the river? Insider trading has taken on an entire new meaning since this team has gained control. The SEC isn’t even a flea on a puppy’s hind end.
Thank God the Democrats are so opposed to WS and big banks, otherwise someone would suspect that they have been colluding to defraud and destroy the entire country!