I am scared by the entire state of economic affairs in this county....Inflation, uncontrolled spending, RE bubble, record high gas prices. I can say one good thing I am happen to hear people will have to start paying more on their min credit card balance, finally so financial resp. Now our government needs to do the same!
Besides SS recipients, the working poor get completely run over with these false inflation numbers. The minimum wage doesn't even keep with the "official numbers". To say nothing of the real numbers. It's been stuck at $5.15 an hour since '97. And we know where prices have gone since then. I don't know the exact numbers, but those "volatile food and energy sectors" probably make up a bigger portion of the budget for the poor than for most other groups.
6.7% 12-month rise in PPI. Of course you'll find the occasional idiot who'll argue we should look at core numbers. As if energy did not matter. The PPI has been outpacing CPI for a little while now. CPI will eventually have to catch up.
Food, energy, housing. That's it. People are living paycheck to paycheck just to provide these basic needs.
CPI 15% annualized, PPI 25% annualized, yet there is no inflation and "stocks rally on tame inflation" after CPI numbers. Guess I'll have to join the sect that lives on core CPI, use no fuel and eat no food I love free money$$
Current money manager dogma states that you need the equity component of your portfolio to outpace inflation's effects (as opposed to maintaining your $ in bonds, guvvies). If there is consistent inflation that spreads over into wages it will probably skew earnings and pump up equity levels, at least until the whole shebang melts down and the goldbugs finally have their 15 seconds of fame (until the US govt. agan privatizes bullion - oops.) Then we will all take a long unpaid vacation, and then roll up our sleeves and start the ball rolling again. Dow 40K here we come.. 100% up room to go I love it But can I please buy some more lower first?
I wish a private company would start issuing their own unbiased CPI numbers. Something without endless adjustments and manipulation.. If the BLS were to report real inflation numbers, congress would lose tens of billions in Social Security funds alone.