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Was he really wrong? If I gift money to an extremely over leveraged banks to save them and, with puckered sphincters (they just saw the abyss), they hold onto

Was he really wrong? If I gift money to an extremely over leveraged banks to save them and, with puckered sphincters (they just saw the abyss), they hold onto it then we won’t “see inflation”. It’s there, but it’s latent inflation. If I demolish wages by exporting jobs overseas, that will have a deflationary effect to counter the effect of inflation. If I replace cocoa butter with food wax, I hide inflation. If I don’t include price of housing in the CPI [1], I manipulate inflation. Schiff’s theory is sound. But, like the GME debacle proved, it’s like shoring a doomed company. Can you stay solvent long enough to prove your point? [1] I know and understand the argument why houses it arent included. I just reject the argument completely as flawed.

waheoo 6y ago
What's the argument for housing not being included thats blizzare.
- throwaway0a5e 6y ago
  I haven't crunched the numbers but so much of people's income goes to housing and housing prices vary so much that I think that would likely result in the outliers trashing any utility the index has.
- deleted 6y ago
  [deleted]
- sovsovsod 6y ago
  Rents included in the CPI. The argument is that a house is an investment. I.e you sell it in the end. Investments aren’t included in the CPI. I think that’s BS because investments increase in value due to inflation (and not just because of their inherent growth). I get the difficulty of extracting the natural growth of the asset from the inflationary growth, but I also believe most of the 2008 monetary mass increase was shoveled into financial assets and this has to be considered. that’s the gist of it.
zpeti 6y ago
I agree with you, but that doesn't take away from the fact that now we might see actual inflation at the level of "everyone". Which is different to the asset price inflation we've seen in the last 12 years.
- hfsp 6y ago
  The "everyone" inflation is around 10%+ in metro areas: http://www.chapwoodindex.org/ http://www.chapwoodindex.org/.

waheoo 6y ago

What's the argument for housing not being included thats blizzare.

throwaway0a5e 6y ago
I haven't crunched the numbers but so much of people's income goes to housing and housing prices vary so much that I think that would likely result in the outliers trashing any utility the index has.
deleted 6y ago
[deleted]
sovsovsod 6y ago
Rents included in the CPI. The argument is that a house is an investment. I.e you sell it in the end. Investments aren’t included in the CPI. I think that’s BS because investments increase in value due to inflation (and not just because of their inherent growth). I get the difficulty of extracting the natural growth of the asset from the inflationary growth, but I also believe most of the 2008 monetary mass increase was shoveled into financial assets and this has to be considered. that’s the gist of it.

zpeti 6y ago

I agree with you, but that doesn't take away from the fact that now we might see actual inflation at the level of "everyone". Which is different to the asset price inflation we've seen in the last 12 years.

hfsp 6y ago
The "everyone" inflation is around 10%+ in metro areas: http://www.chapwoodindex.org/ http://www.chapwoodindex.org/.