Australia's largest stock trading and investment forum Australia's #1 stock forum

GOLD

0.51%

$1,391.7 gold futures

Yes and housing not included in inflation numbers. If someone...

First 64554 Last

Share
Profile

Follow
Max5

10,117 Posts.

563

17/01/20

10:23

Post #: 42429282
Share

Originally posted by Crom Valen: ↑

The 'basket of goods' is just a basket of cr*p, just garbage that gets shifted to a lower cost Asian producer if China's production costs rise any higher.

Are they actually capturing the surging cost of rent, or mortgage payments? Both are surging, gobbling up more and more household income. Some families are now paying 70% of their income on rent.
Hey but despite the above, there is officially 'hardly any inflation' because the prices of rubber chickens and plastic fish slices are not going up. If you were spending most of your income on rent, or saving for a deposit, or paying a mortgage, would you be spending up large on the unlimited supply of rubber chickens that Asia can bring to market? No wonder the retail economy is going belly up.

What a farce. The whole inflation thing is cooked so that central banks can keep merrily slashing interest rates with impunity.

Expand

Yes and housing not included in inflation numbers.

If someone works 1 hour in some form they're not included in the unemployment numbers ! Imagine the real unemployment/underemployment rate also allowing for all those 'hidden' in various Govt. training/retraining schemes etc.

Government and Corporates are also beneficiaries of low numbers in various ways eg politically, wages pressure, welfare payments to name a few.

A couple of relevant articles-one US centric and a little dated but still indicative of some of the issues.

https://www.forbes.com/sites/perianneboring/2014/02/03/if-you-want-to-know-the-real-rate-of-inflation-dont-bother-with-the-cpi/#1ebbbb0c200b

https://www.abc.net.au/news/2017-04-20/inflation-data-suffers-from-exclusion-of-housing/8457718
4 Upvote

0 Great analysis

Reply