Folks, you've been had.
The government wants to keep the reported inflation number down so that it doesn't have to increase entitlement benefit COLAs. Hey, we are the government in the end, and I don't want to see COLAs going up either. But then just make a law to that effect. Reporting false inflation numbers is just stupid.
Why is the inflation number bogus? Because the government computes the cost of rent, not the cost of housing, as the number one item in its calculations.
As we all know, rents have dropped as everyone and anyone rushed in to buy a home. Plus with millions of unused and un-needed homes out there owned as second homes and investments, there's a huge increase in supply.
So presto, home prices double, and a lot of people are now paying more of their total disposable income just to keep the roof over their head. But inflation stays the same. Then there's the hilarious "excluding food and energy" number that's reported. Uh, you add up housing, food and energy, is there anything left for real people?
Here's a good article about reality, and the royal drubbing the Republicans are going to take in November. Who's more out of touch with regular folks - Bush Senior or Bush Junior? It'll be the downfall for both. Let them eat cake.
Used boots fetch $3 and old salt-and-pepper shakers bring in a buck at a makeshift flea market along Highway 27, presumably not what President Bush and Republicans have in mind when they herald a vibrant economy.
Times are "very good for the rich and very, very bad for the poor" who "can't afford to live," laments Larry Mitchell, 43, a now-and-then merchant peddling his wares recently in a submarine sandwich shop parking lot. He says the middle class is "having a hard time."
Seven weeks before the midterm elections, the gulf between Bush's perceptions and that of voters form the political backdrop across the country as well as in a region with several competitive House races. This area typically gets left out of national boom times and usually feels the pinch more than others during slowdowns.
Here and elsewhere differing views on the economy could hurt the GOP's efforts to retain control of the House and Senate this fall, and give voters reason to put Democrats in charge instead.
September 18, 2006
Want the truth about inflation? Ignore the government's bullsh*t number and just go talk to regular folks struggling to make ends meet
Subscribe to:
Post Comments (Atom)
19 comments:
Again with the, "it's all W's fault"? I haven't heard a peep out of the lazy Dems! That sack of sheeet Kerry hasn't mentioned the rip of inflation either.
It's no doubt they've lied to us for years. The biggest hit is on those with COLA increases such as SS, gov't retirees, gov't employees.
Inflation-The Big Lie
Bush is the most capable person ever to occupy 1600. His grasp of history, his depth of understanding, his empathy, and his eloquence are unmatched. He's not only a legend in his own time, generations from now the common man will be lauding his praises, as the one true champion of their cause.
.....Not
marie antoinette!
Want the truth about inflation - what the price of oil. Pretty simple huh?
Seven weeks before the midterm elections
Yes and oil is cheaper now than it was a year ago. This administration is controlling the price of gas thru their corporate back door meetings..
IE:
Vote for us we will save you from the terrorist.
Vote for us we will give you cheap gas.
Vote for us we are the deciders.
We are being had here folks, and it is more blatent than anytime i can remember. They think cause gas goes down a dime or a quarter that we are happy, and everyone go out and spend ..buy buy buy, you have more money now..BULLSHIT! this administration, is 5 times more corrupt then the clinton administration ever was..not saying the clintions are angles no friggin way.
lot of back door deals in that time also..IE: Whitewater..anyway our form of goverment has turned into a parisite..and needs a total douching.
Yeah, I know it leans left, but did anyone read that Washington Post Iraq cronyism article yesterday? Sending a 24 year old kid without an economics or accounting degree to set up the Iraqi stock market just because he worked on the GOP campaign?
I can't wait to see this culture punished for cuddling up to republicans. I said in 1980 as I watched dems vote for reagan that they would live to regret it. Now their solid union jobs are gone and they fold clothes next to their wives at WalMart.
The next hit will reach up to the yuppie level showing them what happens when you vote your greed, selfishness and fear instead of for fairness and idealism.
Bring on the pain.
Oh, use a flea market in a store parking lot in the middle of no where as an example of the economy...
This is why media sucks.
You can say this is an example of a dynamic economy in which there will always be people living at the edge. What he is doing is no different than most ebay sellers today...
Flea markets are not only a good way to recycle things, but can provide deals if you have the time to deal with price pressures.
Not saying everyone should go to a flea market, but this is not an example of an economy.
"Kerry hasn't mentioned the rip of inflation either."
I'm pretty sure during the campaign I heard him ad nauseum talking abnout how the middle class was dying due to the rising costs of various things such as health care, education, and energy.
Not to defend the windsurfer, but still, let's try to recite facts.
Hey,don't down flea markets! They are great fun and every now and then I pick up that "special" item for next to nothing. One man's trash is another man's treasure. Oh yea, EVERYBODY should go to one!
what will really be telling is when you can pick up the deed to a condo conversion at your local flea market...I give it a couple years.
So Keith, which is it? Deflation or Inflation?
How do you protect yourself? In deflation, cash, in inflation, assets.
The Economist just said the house markets in Britain and Australia are now "up" and their prices are much higher than ours so what will be the trend here? I think we'll see prices continue up in some markets and down in others. Those markets that have seen higher than inflation rises have room to fall. I think over-all rents will rise reducing the difference in the PE ratios from renting and buying giving room for prices to rise to adjust for inflation.
Just finished that 5000 mile road trip throughout the west. What did I see? Well, first, Austin is definitely a good place to live. Second, I agree with Keith that prices in small areas with no economies are totally unrealistic. Places like Whitefish Montana or Missoula with 3-400,000 starter homes?
Also prices. I travel a lot and I can say the price of everything from hotels, food, gas, trinkets, entry fees to national parks has risen. Even at fast food joints hard to not spend $8 for two and the only reason is the portions are smaller! Have you seen how small the big mac or fish sandwich at McDonalds has gotten? If they can't raise the price they reduce the size and charge the same (same goes for candy bars).
Have you been to Goodwill or Salvation Army thrift stores? You can't buy a used book in poor condition for less than a dollar. They sell used books for as high as $8 for a used hardback! Clothes? The prices run at what you use to be able to buy new at Kmart.
You say that the national debt is much higher? That inflation is under-reported? Then say prices will fall? Which is it? Unless there is an economic collapse Argentina style prices will not fall, and if they do as a result of a collapse then no matter how cheap the price sounds if you don't have cash, a job, it don't matter 'cause you still can't afford it.
Just left Phoenix and those far out suburbs are seeing some price drops but I looked at some homes in central Phoenix and they still want $410,000 for an 1800 sq ft fixer. The new homes? Still want $600,000 for a house that four years ago sold for under $300,000. And I still saw a lot of sold signs so the market isn't dead yet.
In our entire 5000 mile drive we didn't see any signs of a meltdown or panic either in the housing market or the local economies. I did see pressure to raise wages and something like 10 states want to raise the minimum wage which our impotent government refuses to do. I think the government will assist the inflation/wage increase method of resolving the affordability issues.
This country has foreign money supporting our mortgages so devaluing our currency which those mortgages are held in along with a dose of inflation to further deflate the value of those dollars will erode away the debt.
What do the rest of you think? I'm just as confused about the future as I was four years ago when I got nervous about the rise in house prices in Phoenix and sold and left. The only thing I've seen change is that if I want to return I have to pay 1/3 more than when I left and for less.
Anon 12:17:41 Are you sniffing Glue? are you smoking bush's pole? YAFOS STMF Bush is the worst President this country has ever had thought of having - How could you say such a stupid Full of Sh** thing. Go stick your head in the Crapper you must be drunk.
foxwoodlief - it seems tough to read the tea leaves right now, but should be much easier around Q1 2007, or shortly thereafter. We are in uncharted territory, and I wonder if the outcome might be some strange new combination? For instance, housing could correct (fall off the cliff it's perched on) followed by the cost of staples skyrocketing along with a currency crisis. Something's got to give, but there are so many variables, it's impossible to say exaclty what or how. Perhaps that book on historic bubbles recommended in an earlier post can help?
Bush admin has a lot to answer for, but I have a deep sense that the 800 pound gorillas looming are not going to be stopped by any politician of any stripe. We are getting our butts kicked by global warming, peak oil, and the herd mentality of the housing bubble. Pre-Age of Reason mentality of majority of the world's population (including USA) doesn't bode well either. On the plus side, there's a better level of awareness than ever.
ROFLMAO You idiots are crying about the loss of union jobs? If those lazy corrupt scumbag unions would have worked hard, they would still be around. They are typical leftards who wanted something for nothing, as usual
Who actually types out ROFLMAO?
There should be some kind of study to look into the mental retardation it takes to go to the trouble of typing out ROFLMAO. If you are older than 15 and you type out ROTFLMAO, you really, by all rights, should be busy working in some kind of mine or field instead of conversing by way of a computer.
i agree and caps are rude!
it should be rotflmao.
Post a Comment