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OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94708] Tue, 15 January 2008 06:15 Go to next message
Bill L is currently offline  Bill L   UNITED STATES
Messages: 766
Registered: August 2006
Senior Member
To quote myself, "...our Fed Reserve just keeps on printing new dollars
every time they feel like having an extra juicy profit." Who gets rich
in war time? Central bankers! They love war time, lending money to both
sides at exorbitant interest rates.

You do realize who gets screwed by inflation? People who work for a
living and people who save money. Do you still think we can afford this
war and our bought and paid for Presidents?

Are you hearing Ron Paul yet?

PS: Martin, I know this is OT and may not seem to apply to Australia,
but please don't ignore it. You will somehow feel the effects of it,
too. Sorry.
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94712 is a reply to message #94708] Tue, 15 January 2008 06:55 Go to previous messageGo to next message
rick is currently offline  rick   UNITED STATES
Messages: 1976
Registered: February 2006
Senior Member
it's a shame he doesn't have a chance in hell...


On Tue, 15 Jan 2008 09:15:50 -0500, Bill L <bill@billlorentzen.com>
wrote:

>To quote myself, "...our Fed Reserve just keeps on printing new dollars
>every time they feel like having an extra juicy profit." Who gets rich
>in war time? Central bankers! They love war time, lending money to both
>sides at exorbitant interest rates.
>
>You do realize who gets screwed by inflation? People who work for a
>living and people who save money. Do you still think we can afford this
>war and our bought and paid for Presidents?
>
>Are you hearing Ron Paul yet?
>
>PS: Martin, I know this is OT and may not seem to apply to Australia,
>but please don't ignore it. You will somehow feel the effects of it,
>too. Sorry.
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94720 is a reply to message #94708] Tue, 15 January 2008 10:33 Go to previous messageGo to next message
Gary Flanigan is currently offline  Gary Flanigan
Messages: 181
Registered: June 2006
Senior Member
Bill L <bill@billlorentzen.com> wrote:
>To quote myself, "...our Fed Reserve just keeps on printing new dollars

>every time they feel like having an extra juicy profit." Who gets rich
>in war time? Central bankers! They love war time, lending money to both

>sides at exorbitant interest rates.
>
>You do realize who gets screwed by inflation? People who work for a
>living and people who save money. Do you still think we can afford this

>war and our bought and paid for Presidents?
>
>Are you hearing Ron Paul yet?
>
>PS: Martin, I know this is OT and may not seem to apply to Australia,
>but please don't ignore it. You will somehow feel the effects of it,
>too. Sorry.
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94721 is a reply to message #94708] Tue, 15 January 2008 10:34 Go to previous messageGo to next message
Gary Flanigan is currently offline  Gary Flanigan
Messages: 181
Registered: June 2006
Senior Member
Where did you get that number? It is roughly twice what has been reporteed
by any other source I have seen.


Bill L <bill@billlorentzen.com> wrote:
>To quote myself, "...our Fed Reserve just keeps on printing new dollars

>every time they feel like having an extra juicy profit." Who gets rich
>in war time? Central bankers! They love war time, lending money to both

>sides at exorbitant interest rates.
>
>You do realize who gets screwed by inflation? People who work for a
>living and people who save money. Do you still think we can afford this

>war and our bought and paid for Presidents?
>
>Are you hearing Ron Paul yet?
>
>PS: Martin, I know this is OT and may not seem to apply to Australia,
>but please don't ignore it. You will somehow feel the effects of it,
>too. Sorry.
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94733 is a reply to message #94721] Tue, 15 January 2008 14:23 Go to previous messageGo to next message
steve the artguy is currently offline  steve the artguy
Messages: 308
Registered: June 2005
Senior Member
Odd. It's my understanding that 6% is about a third of what you'd get if you
calculated it the way it used to be calculated.

-steve


"Gary Flanigan" <garyf_94103@yahoo.com> wrote:
>
>
>Where did you get that number? It is roughly twice what has been reporteed
>by any other source I have seen.
>
>
>Bill L <bill@billlorentzen.com> wrote:
>>To quote myself, "...our Fed Reserve just keeps on printing new dollars
>
>>every time they feel like having an extra juicy profit." Who gets rich

>>in war time? Central bankers! They love war time, lending money to both
>
>>sides at exorbitant interest rates.
>>
>>You do realize who gets screwed by inflation? People who work for a
>>living and people who save money. Do you still think we can afford this
>
>>war and our bought and paid for Presidents?
>>
>>Are you hearing Ron Paul yet?
>>
>>PS: Martin, I know this is OT and may not seem to apply to Australia,
>>but please don't ignore it. You will somehow feel the effects of it,
>>too. Sorry.
>
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94735 is a reply to message #94721] Tue, 15 January 2008 13:20 Go to previous messageGo to next message
Bill L is currently offline  Bill L   UNITED STATES
Messages: 766
Registered: August 2006
Senior Member
It was headline on Drudge

Gary Flanigan wrote:
> Where did you get that number? It is roughly twice what has been reporteed
> by any other source I have seen.
>
>
> Bill L <bill@billlorentzen.com> wrote:
>> To quote myself, "...our Fed Reserve just keeps on printing new dollars
>
>> every time they feel like having an extra juicy profit." Who gets rich
>> in war time? Central bankers! They love war time, lending money to both
>
>> sides at exorbitant interest rates.
>>
>> You do realize who gets screwed by inflation? People who work for a
>> living and people who save money. Do you still think we can afford this
>
>> war and our bought and paid for Presidents?
>>
>> Are you hearing Ron Paul yet?
>>
>> PS: Martin, I know this is OT and may not seem to apply to Australia,
>> but please don't ignore it. You will somehow feel the effects of it,
>> too. Sorry.
>
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94742 is a reply to message #94721] Tue, 15 January 2008 15:08 Go to previous messageGo to next message
TCB is currently offline  TCB
Messages: 1261
Registered: July 2007
Senior Member
At the risk of being a pedant, 'inflation' means a lot of different things.
The most commonly quoted stat is the Consumer Price Index, which is a basket
of consumer goods that, mysteriously, doesn't include food or energy. There's
also the producer price index and about a half dozen others. The one Bill
was quoting, the 6.3 rate and highest since '81, was the wholesale inflation
rate.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajSM r9Idmokg&refer=home

Personally I think it's interesting that wholesale inflation is going up
so much faster than consumer inflation, which (sorry for the pedantry again)
I would guess is that fact that worldwide commodity prices have been going
through the roof but consumers are slowing down purchasing (no home equity
credit line to fund the Xmas orgy this year) so producers can't pass along
the extra cost to customers as price increases.

Keep in mind that the devaluing dollar is also in essence an inflationary
force. A weaker dollar means that when buying anything denominated in another
currency (unless that currency is pegged to the dollar), it costs more. And
if I need more dollars to buy the same thing, that's just another way to
say inflation.

Sliding even further into pedantry, inflation isn't necessarily, as Bill
claims, bad for 'the little guy.' Lenders fear inflation more than anything,
because if they charge a fixed interest rate and inflation is greater than
that they lose money. If a borrower's income keeps up with inflation (and
wages usually do, not always but usually) then the real cost of paying back
a loan is decreased by inflation. So banks, and central banks in particular,
fear inflation more than anything.

Anyway, it's not a simple, zero sum game, but Bill's stat was legit, and
referred to wholesale inflation.

Your friendly local off topic newsgroup pedant,

TCB


"Gary Flanigan" <garyf_94103@yahoo.com> wrote:
>
>
>Where did you get that number? It is roughly twice what has been reporteed
>by any other source I have seen.
>
>
>Bill L <bill@billlorentzen.com> wrote:
>>To quote myself, "...our Fed Reserve just keeps on printing new dollars
>
>>every time they feel like having an extra juicy profit." Who gets rich

>>in war time? Central bankers! They love war time, lending money to both
>
>>sides at exorbitant interest rates.
>>
>>You do realize who gets screwed by inflation? People who work for a
>>living and people who save money. Do you still think we can afford this
>
>>war and our bought and paid for Presidents?
>>
>>Are you hearing Ron Paul yet?
>>
>>PS: Martin, I know this is OT and may not seem to apply to Australia,
>>but please don't ignore it. You will somehow feel the effects of it,
>>too. Sorry.
>
Re: OT - US inflation '07 = 6.3% - largest in 26 years!!! [message #94829 is a reply to message #94742] Thu, 17 January 2008 13:18 Go to previous message
Bill L is currently offline  Bill L   UNITED STATES
Messages: 766
Registered: August 2006
Senior Member
Thanks for the clarification, Thad. I just read the headline in a hurry.
I always appreciate the lucidity and well-informedness of your posts.
Not at all pedantic, just accurate.

TCB wrote:
> At the risk of being a pedant, 'inflation' means a lot of different things.
> The most commonly quoted stat is the Consumer Price Index, which is a basket
> of consumer goods that, mysteriously, doesn't include food or energy. There's
> also the producer price index and about a half dozen others. The one Bill
> was quoting, the 6.3 rate and highest since '81, was the wholesale inflation
> rate.
>
> http://www.bloomberg.com/apps/news?pid=20601087&sid=ajSM r9Idmokg&refer=home
>
> Personally I think it's interesting that wholesale inflation is going up
> so much faster than consumer inflation, which (sorry for the pedantry again)
> I would guess is that fact that worldwide commodity prices have been going
> through the roof but consumers are slowing down purchasing (no home equity
> credit line to fund the Xmas orgy this year) so producers can't pass along
> the extra cost to customers as price increases.
>
> Keep in mind that the devaluing dollar is also in essence an inflationary
> force. A weaker dollar means that when buying anything denominated in another
> currency (unless that currency is pegged to the dollar), it costs more. And
> if I need more dollars to buy the same thing, that's just another way to
> say inflation.
>
> Sliding even further into pedantry, inflation isn't necessarily, as Bill
> claims, bad for 'the little guy.' Lenders fear inflation more than anything,
> because if they charge a fixed interest rate and inflation is greater than
> that they lose money. If a borrower's income keeps up with inflation (and
> wages usually do, not always but usually) then the real cost of paying back
> a loan is decreased by inflation. So banks, and central banks in particular,
> fear inflation more than anything.
>
> Anyway, it's not a simple, zero sum game, but Bill's stat was legit, and
> referred to wholesale inflation.
>
> Your friendly local off topic newsgroup pedant,
>
> TCB
>
>
> "Gary Flanigan" <garyf_94103@yahoo.com> wrote:
>>
>> Where did you get that number? It is roughly twice what has been reporteed
>> by any other source I have seen.
>>
>>
>> Bill L <bill@billlorentzen.com> wrote:
>>> To quote myself, "...our Fed Reserve just keeps on printing new dollars
>>> every time they feel like having an extra juicy profit." Who gets rich
>
>>> in war time? Central bankers! They love war time, lending money to both
>>> sides at exorbitant interest rates.
>>>
>>> You do realize who gets screwed by inflation? People who work for a
>>> living and people who save money. Do you still think we can afford this
>>> war and our bought and paid for Presidents?
>>>
>>> Are you hearing Ron Paul yet?
>>>
>>> PS: Martin, I know this is OT and may not seem to apply to Australia,
>>> but please don't ignore it. You will somehow feel the effects of it,
>>> too. Sorry.
>
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