Fed Launches QE3
- Thread starter jryan21
- Start date
I'll see your "higher inflation rate lookit gas prices" and raise you with my "console price over 35 years graph"
But semi-seriously, I see a jillion articles on the internet about the inflationary policies of the fed, and maybe one? (I take it on faith there is at least one) article on the deflationary impact of new technology.
Not that gas prices were even a good example for them. 95% of the recent gas price spikes occurred before QE1. But I'm sure they'll blame it on QE anyway. Facts don't matter.
I'll see your "higher inflation rate lookit gas prices" and raise you with my "console price over 35 years graph"
But semi-seriously, I see a jillion articles on the internet about the inflationary policies of the fed, and maybe one? (I take it on faith there is at least one) article on the deflationary impact of new technology.
Of course prices go down in technology or anything of innovation. That's how markets work and this is in spite of inflation. Advancement in technology is outpacing inflation. This doesn't mean inflation is not real. Console prices would be even cheaper if it wasn't for inflation.
Moreover, what does this graph mean when it says "Adjusted for inflation"? I bought a Sega Saturn when it was first released and it didn't cost $600. An NES was not $426. If you want to adjust for inflation the prices on the newer consoles would be higher, not the older consoles.
You might not be seeing inflation in america but I can assure you we are having a shit ton of it here in the UK.
My electricity bill has risen at least 50% in the last 2 years and my groceries by 1/3. Food stuffs are comming in smaller quantities ie 2 in a pack instead of 3 for the same price, bigger packaging but smaller weight etc and this is on everything not just a few items.
The bigger questions though are:
where is this QE money coming from?
what is it buying?
who are you paying interest to for the privilage?
how much interest per year and for how long?
How is it being paid for?
My electricity bill has risen at least 50% in the last 2 years and my groceries by 1/3. Food stuffs are comming in smaller quantities ie 2 in a pack instead of 3 for the same price, bigger packaging but smaller weight etc and this is on everything not just a few items.
The bigger questions though are:
where is this QE money coming from?
what is it buying?
who are you paying interest to for the privilage?
how much interest per year and for how long?
How is it being paid for?
YOU DOWN WITH QE3? YEAH YOU KNOW ME!
WHO DOWN WITH QE3? MR. BERNANKE!
UHHHH!!!
Maybe he did it just to jump start a rapping career? It's kinda catchy. :-O
WHO DOWN WITH QE3? MR. BERNANKE!
UHHHH!!!
Maybe he did it just to jump start a rapping career? It's kinda catchy. :-O
Comparisons are easiest to understand in terms of the current dollar, because that is what everyone deals with on a day to day basis. If you ask people how many hours they currently have to work to get $100 and how much stuff they can buy with it, most will quickly have an idea in their head. If you ask people the same about $100 in 1985 or 1975, then most will have to stop and think about it, even if they were alive and worked back then.
The Sega Saturn did not cost $600, but also more hours had to be worked back then to achieve $100.
The problem is , the median wage in the US has decreased to where it was in 1998 or so.
If you believe the government's numbers, effective wages today aren't any better than they were in the late 60s/early 70s.
The government numbers on wages are screwed up, but not in the way you think.
The big, big number that the government has hard data on is household income. Now depending on whoever is in power, that number is trotted out by either dishonest economics writer on the left or right to say that things are getting worse.
On paper household income hasn't grown for the last 30 years. But did you spot the gaping hole yet? Household is not the same as individual income. The number of people per household has shrunk significantly over the last 30 years, therefore it is reasonable to conclude that individual income has gone up.
Also, there is another game that gets played by anybody with a political axe to grind You can skew the numbers by only show income from wages and dividends and show the average household is getting fucked. But that's if you leave out entitlements (social security, food stamps, etc). Put those back in, and the picture changes a lot.
People have written entire books on how the economic stats are gamed by the political hacks on both sides of the spectrum. Step carefully and assume that every writer you read has a political agenda. Even if agree with that writer's agenda, that doesn't mean you swallow the bullshit and think it tastes yummy.
I'll see your "higher inflation rate lookit gas prices" and raise you with my "console price over 35 years graph"
But semi-seriously, I see a jillion articles on the internet about the inflationary policies of the fed, and maybe one? (I take it on faith there is at least one) article on the deflationary impact of new technology.
You are right sir. Nowadays all I need is my fucking Wii and Xbox console. I do gym on wiii which costs me nothing, I shoot people on COD which cost me nothing (no need to buy real gun), I can eat in all those stupid sim city or restaurant/bakery games.
Who need a fucking gas when we all can eat, shit and have sex with a console.