Sorry Folks We Just Can't Have A Correction Anymore

Not even close.

Wages are the ONLY thing that matters.

 

So if wages are stagnant and commodity prices are soaring, that isn't inflation?

 

Nope.

 

The definition of inflation that I am familiar with is something like:

So how can a basket of soaring commodities not be considered inflation? Do we not buy commodities? Aren't they "goods"?

 

The biggest BS ever is that asset prices are not included in inflation. What is the difference between CPI and asset prices, they are both a result of massive credit and money supply growth. The last decade has been a border line hyper inflation is asset prices.

 

If the grain crops were wiped out in a drought would you attribute their price advance to inflation?

 

No.

So you are saying the current rise in commodity prices is due to some one-time catastrophic act of nature? Wouldn't inflation be a simpler and more logical explanation? Occam's razor.

 

If there was across the board commodity inflation we'd see Sugar at higher prices than 10 cents a pound.

Much commodity inflation has been of special circumstance. The global Wheat crop sucked, a drought in the South cut Cotton production, ethanol caused farmers to load up on Corn plantings with too few Soybeans and oil-well we all know the fundamentals there.

Convert the price of many commodities into Euros or Canadian dollars and the price rise is less than dramatic.

And yes there IS wage inflation but alas it's in Asia.

That's the difference between now and the 1970's. In the 70's prices skyrocketed but so did paychecks. Given the dollars weakness there's been LITTLE price pressure in the manufacturing sector. Cars, clothes, electronics are all flat.

 

One thing you've got bang on is that whole wage inflation thingy...pretty key...but you can't look at the entire picture without considering price inflation.

The inflation tax KILLS the middle class. $$$ transfered from Main Street to Wall Street. While you may not be middle class, 8 out of the 10 folks at your local diner are...ask them!

We could give a fuck all about manufacturing in this country...
Have you driven a Ford, lately? I think not..

People who don't see their cost of living rising must not pay their own bills...

 

Sorry once again to these waiting for a correction to buy stocks, 1-2 maybe but thats it, 10% corrections just are not allowed to happen.