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Thread: Real Inflation far EXCEEDS 2%

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    Karl's Avatar
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    Real Inflation far EXCEEDS 2%

    At the traditional J-Hole Jawbone held on Zoom this year because of Covid19..

    Jay Powell layed out welp Inflation is TOO SLOW..

    Couldve sure "FOOLED" Me and I think most of you.

    Considering they printed like 3/4 TRILLION you'd actually think HYPER-INFLATION would take hold..

    You'd be Wrong..

    Beyond the 12k Stimulus and the Fed Unemployment Juice rest of that $$ $$ went to WALL STREET and Banks..

    Vast majority of that Cash ain't hitting the Streets it's in some Hedge Fund books..

    Ironically you have "DEFLATION"..

    But Trumpster makes note of BIGGEST Stock Market "Recovery" ever..

    Not even "knowing" a mere penny or 2 actually HIT The Streets

    All these Rioters "LOOTERS" need to pack a bus to WASH-DC..

    The "Ecclees" Building is your GRIND...

    Not just everyday people but ya BURN half the freaking neighborhoods down ya morons
    ..

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    HawkTheSlayer (09-10-2020)

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    But Trumpster makes note of BIGGEST Stock Market "Recovery" ever..
    Not even "knowing" a mere penny or 2 actually HIT The Streets

    Karl have you ever heard the expression "It takes money to make money"? That's a very true expression. Back when I was broke I did break even every payday. If I got a windfall (of any kind) my ex found a way to spend it. Emergencies were covered by credit cards & it was hell paying them off. I hated my financial life but hated the life that I would have with my ex pissed off at me all the time even more. So I gave in & went along.

    Then I got rid of the ex. "I" started managing my finances. Even with child support I found that I could squirrel away some money every month. A little here & a little there and after a while I built up an emergency fund. Squirreling away continued & after a while I had enough to start investing. I started with 50 bucks a month. I kept at it though & after a while increased that amount. I did that for 30 years PLUS never lived in debt & what debt I had to have (house & car) I paid off early. Early on I was breaking even every month. A car paid off meant that car payment went on the house.

    Now you said that a mere penny or 2 hit the street. Your right in that those that are broke all the time won't benefit except maybe by having a job. And those people will never get ahead because "extra" money will go on better stuff or toys. But to those that saved & invested that penny just might have a bunch of "friends", like in my case.

    To sum it up, you will never win the lottery if you don't buy a ticket. And you will never benefit from a booming economy if you keep yourself broke all the time. And if you don't believe that it's your fault your broke you will never change.

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    Foghorn (09-14-2020)

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    I think real inflation is more in the 6 - 8% range.

    I changed the way I looked at inflation during the financial crisis when the Obama administration kept telling us inflation was low, yet the prices of a can of beans or a box of nails were skyrocketing. So I started digging.

    The short version of the story is there are lots of ways to measure inflation so it all really depends upon who you ask. To make matters worse I didn't personally like any of the available options, they all seemed to stink, so I came up with my own Can Of Beans Inflation Index. It was the only version that followed any purely logical path.

    [1] What is the price of a can of beans today vs a can of beans yesterday?

    [2] What do you get in a can of beans today vs yesterday?

    In a hypothetical example, let's say you're paying 10% more for that can of beans than a year ago, but the size of the can is 15% smaller. The bottom line is you're paying more for a lot less product.

    We've all experienced this exact same scenario in real life, whether it is at the grocery store or buying homeowner's insurance. You're paying more but getting less. That's some big time inflation no matter how you slice it.

    -----

    These little side projects of mine can take on a life of their own and it's easy to get lost in the weeds. Consequently, I need to keep reminding myself to simplify, then simplify some more.

    In essence, come to a conclusion as quickly as possible and don't get bogged down in the weeds. Plus, it's important to discover if you can personally benefit from this new found perspective.

    So I've done just that. Don't pay any attention what "they" say about inflation and plan ahead for an inflation rate that is much, much higher than advertised.

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    So I've done just that. Don't pay any attention what "they" say about inflation and plan ahead for an inflation rate that is much, much higher than advertised.

    I think that Foghorn summed up how everyone should run their financial life....Plan ahead. Now that sounds simple but most people that I have known don't do it. Maybe they will plan on how to pay that big bill off (or pay on it) in the next 2 weeks or month but that's about it. In my whole life I've knowns maybe 2 or 3 people that had a long term (20 or 30 years) financial plan. I used to have a job talking to younger people about finances & the most common thing I heard from them was "I'll be dead by then". They didn't need to save because they would be dead by then. My reply "But what if your plans fail & you live even longer than that?".

    Plan financially for the worst & if it happens your ready. If it doesn't happen then your rich.

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