5 ms·

Rising rent will absolutely be in the inflation number. Sure, it might not be correct if you live in a big city where rents have risen way beyond inflation numb

Rising rent will absolutely be in the inflation number. Sure, it might not be correct if you live in a big city where rents have risen way beyond inflation numbers, but it's good on average. Every European capital / big city has seen absolutely massive increases in rent and house prises since the ECB started printing money. (Housing sector if very 'close' to the banking sector and so more directly affected by the availability of cheap credit). Not causes by the ECB 100%, but accelerated by it nonetheless. But if the cost of all other goods has stayed the same, plus the rent and house prises in rural areas has been normal or even dropped, inflation on average will be ok. (And then the ECB says: inflation is less than 2% _on average_ so no problem here. print. print.. print...)

pg314 8y ago
> Every European capital / big city has seen absolutely massive increases in rent and house prises since the ECB started printing money. For Brussels at least, that is simply not true. See the graph in section 'Brussels Hoofdstedelijk Gewest' of [1] for the evolution of real estate prices in the Brussels region since 2008. There are also strict rent controls in Belgium: if you are renting your landlord can increase the rent with inflation, but not more. Every three years the landlord can theoretically increase the price, if he has made improvements to the property or he can prove that the rental value has objectively increased by more than 20% (which is hard, if there are disputes courts tend to side with tenants). [1] https://statbel.fgov.be/nl/themas/bouwen-wonen/vastgoedprijzen#news https://statbel.fgov.be/nl/themas/bouwen-wonen/vastgoedprijz...
mistermann 8y ago
> Rising rent will absolutely be in the inflation number. Sure, it might not be correct if you live in a big city where rents have risen way beyond inflation numbers, but it's good on average. This assumes the numbers accurately represent reality. Here in Canada, the shelter component of our CPI numbers do not reflect at all the massive price inflation that has been occurring in both buying and renting shelter. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=181000... If one was to take their numbers at face value, you would conclude that shelter price inflation is generally consistent with all other goods, and that it has been consistent across all regions, neither of which is true.
vanderZwan 8y ago
I'm sorry but this statement is full of FUD. Printing money is what central banks do. It's what every Eurozone nation used to do with their own money as well before switching to the Euro. So unless you can explain what the ECB does differently that makes this worse than the central banks before it, you don't really have much of an argument. Is it printing money faster than the central banks before it did? If so, give some numbers and sources please. And in general, be explicit about your claims, because as written you're practically suggesting that the Eurozone is acting like the Weimar Republic.
- tomp 8y ago
  ECB, FED and the Swiss National Bank have been "printing" money but not the same as before. They're only using it to buy securities, first bonds, and now even stocks/index ETFs. Search "FED balance sheet vs S&P" or something similar. E.g. http://whattheythink.com/data/84893-feds-balance-sheet/ http://whattheythink.com/data/84893-feds-balance-sheet/

pg314 8y ago

> Every European capital / big city has seen absolutely massive increases in rent and house prises since the ECB started printing money. For Brussels at least, that is simply not true. See the graph in section 'Brussels Hoofdstedelijk Gewest' of [1] for the evolution of real estate prices in the Brussels region since 2008. There are also strict rent controls in Belgium: if you are renting your landlord can increase the rent with inflation, but not more. Every three years the landlord can theoretically increase the price, if he has made improvements to the property or he can prove that the rental value has objectively increased by more than 20% (which is hard, if there are disputes courts tend to side with tenants). [1] https://statbel.fgov.be/nl/themas/bouwen-wonen/vastgoedprijzen#news https://statbel.fgov.be/nl/themas/bouwen-wonen/vastgoedprijz...

mistermann 8y ago

> Rising rent will absolutely be in the inflation number. Sure, it might not be correct if you live in a big city where rents have risen way beyond inflation numbers, but it's good on average. This assumes the numbers accurately represent reality. Here in Canada, the shelter component of our CPI numbers do not reflect at all the massive price inflation that has been occurring in both buying and renting shelter. https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000501 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=181000... If one was to take their numbers at face value, you would conclude that shelter price inflation is generally consistent with all other goods, and that it has been consistent across all regions, neither of which is true.

vanderZwan 8y ago

I'm sorry but this statement is full of FUD. Printing money is what central banks do. It's what every Eurozone nation used to do with their own money as well before switching to the Euro. So unless you can explain what the ECB does differently that makes this worse than the central banks before it, you don't really have much of an argument. Is it printing money faster than the central banks before it did? If so, give some numbers and sources please. And in general, be explicit about your claims, because as written you're practically suggesting that the Eurozone is acting like the Weimar Republic.

tomp 8y ago
ECB, FED and the Swiss National Bank have been "printing" money but not the same as before. They're only using it to buy securities, first bonds, and now even stocks/index ETFs. Search "FED balance sheet vs S&P" or something similar. E.g. http://whattheythink.com/data/84893-feds-balance-sheet/ http://whattheythink.com/data/84893-feds-balance-sheet/