Why the literal fuck is inflation so low?

Why the literal fuck is inflation so low?

bloomberg.com/news/articles/2019-03-12/low-inflation-is-federal-reserve-s-maddening-unsolved-mystery

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maybe because they don't account for things like petrol or energy costs or rent or pretty much anything relevant anymore when calculating it. It's one of the biggest scams of them all inflation - the rate that gets officially reported is wildly disproportional to the actual increase in living expenses - do you think your you can buy the same is just as good as it was 10 years ago? No? I bet you can buy maybe half the stuff you could them with the same amount of money.

Well I guess what - that just doesn't happen on a 1% inflation rate now does it.

>do you think your you can buy the same is just as good as it was 10 years ago? No?
Actually yes, it's not that different from 10 years ago

t. lives with parents and doesn't pay bills and thinks vidya and chink shit on amazon is what people spend money on

I'm retired early and live by myself, faggot. Since we're talking in anecdotes here, there's mine. Inflation has been low

Competition with Chinks keeps prices low.

Wait till the Democrats get a majority in the US and you'll see what real inflation is like. Hope you got plenty of bottled water stored

All the money is just accumulating in stock buybacks that further enrich the wealthy. Inflation can't occur if the newly printed money never circulates.
>Jow Forums will defend this

Publicizing the true rate of inflation would cause riots.

Nah. It wouldn't at all. You srly think there will be riots or anything close to a revolution? The current generation is degenerated as fuck and as long they have a shelter, food and WiFi, they are happy.

If that were all that happened, it wouldn't be a bad thing - who cares if the sticker price of some stock you don't give a shot about goes up in some millionaire's brokerage account - as long as your housing etc didn't fucking skyrocket.

Instead, everything we actually need to live just keeps getting more expensive- it's not billionaires buying all the food so we can't eat or moving into all the housing so rents go up.

Prices are going up because the rich are using them as an investment vehicle.

Not true. It's just their only option. They can be depressed and mass suicide/riot or make the best of their shitty lives by entertaining themselves with what's available in their price range.

When your disposable income is like 400 bucks a month, stocks are ballooned, home ownership out of reach, kids/family financially unrealistic, what do you expect of them in their behavior?

Westerns don't help their kids on the path of their first home like other countries, western parents don't even help with college. Call them retards all you want, but the average grad is paying a mortgage note worth of student loans. 18 year olds are idiots, you can't expect them to understand the consequences of a giant loan. How much credit would a bank give a 18 year old for their first card? Almost nothing right? Why is it okay to give a 18 year old retard 50k, 100k, sometimes even more as a line of credit for college? That's insane.

100% rent increases over 3 years in Berlin, fucking inflation rate is still only 2 percent in germany, kek if you really believe in the invented baskets to say anything about inflation

well maybe you should own equity then retard. you dont have to be rich

there are two types of inflation
one is "the same product's prices are getting higher"
the other is "products are getting shittier at the same price"
Some assets are experiencing the first, while others are experiencing the latter.
Real estate has sky rocketed in the last 10 years.
Other durable goods as well. Even the goddamn flagship iPhone.
On the other hand, along the example of fast fashion, other cost cutting measures have been implemented. Food is worse now. Cars are worse now. You don't get the same utility out of the same product at the same price.

TL;DR
It's hidden inflation.

The price to buy housing? Yes.

But that housing would sit empty if there weren't enough people to fill them.

This is 100% due to dollar being the global reserve currency.

All the 3rd world politicians and bureaucrats that have sliced up the wealth of their nations are escaping to dollars and constantly trying to take their money out to safe havens.
This deflationary pressure has always existed but it is now incredibly amped up due to the irregularities in the Chinese economy. They have absolutely fucking insane amounts of bad debt and the value of their money is only supported by capital controls and the offshore/onshore scam they are running. If the average Chinese person suddenly could freely exchange his money to foreign currencies and take his money outside the country whether via deposits or investments China would be gone in a single day. So since everyone in China who has some amount of money and is not a retard knows this they all are trying to get their hands on as much dollars as possible while the govt is trying to maintain the exchange rate through trade surpluses. One day this will inevitably fail and China is going to turn into dust faster than anyone thinks is possible today.

There is going to be deflation in all developed world economies, there are limits to the effectiveness of QE and negative interest rates, everyone invested in equities is going to get wiped out. This is not going to benefit cryptocurrencies because all this shit, cryptos, weedstocks, startups, they're all fart in the wind, they're all memes and symptoms of the shitstorm that is on the horizon. Gold, silver etc. too. Noone is going to come out of the shitstorm China will unleash on the world unscathed. The question is when the Chinese groupthink will shift from "China stronk there's nothing wrong in our economy that grows 6% all year every years" to blind panic.

I dont get your post, can you clarify for a uneducated user, how is Chinas debt bad and why would the average Chinese take his money outside?

It's bad because they can't pay it back.
Average Chinese would wish to take his money outside the country because
1- As long as their money is in China it is not entirely theirs (not legally protected in any way from the government or anyone high up in the government)
2- The yuan is artificially propped up by the Chinese government and they can't keep that forever
3- Their wealth being in yuan means any serious weakness in the Chinese economy is capable of erasing it

exactly, it sounds like you already own where you live, don't ave to drive much, and aren't buying much stuff. everything you own has held a steady price sure, but everything else has been going up in price over the past 10 years in most major american cities which is where the people who actually have to work for a living are forced to live.

underrated. with things like rent you're either paying more for a nicer apartment than you could have gotten 10 years ago or paying the same for a shitty apartment that hasn't had basic repair in 20. Same thing with cars, older cars that aren't pieces of shit aren't dropping in price because nobody can afford to buy new cars or wants to deal with a dealership.

Inflation is calculated in such a way as to omit the price of certain important things. It's deliberately designed to appear as though big numbers aren't involved.

There's a shit ton of inflation in the asset markets such as real estate and the stock/bond market in all western countries.

This.
Inflation isn't only about the supply, it requires some liquidity too.
You can print 1 quadrillion dollars tomorrow, if they don't move much it will have no effect on prices and purchasing power, the moment it does everything is fucked though.

Cool story bro.

Seriously tho, interesting analysis. China props up all it's failing businesses with capital injections from bailouts. Not a great business model.

Fpbp by far as usual

It’s befauwe the way the gov measures inflation is bullshit

Why the literal fuck are he shoulders so broad and hips so narrow?

It’s a fucking amazing business model. Until it isn’t.

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if you buy stocks with money you just printed it's still going into the economy, after all you've just bought it from SOMEONE with your fake money which he now has and will put into the economy

I just hope China doesn't get desperate enough to start a war before their debt pops. They need to deal with it like adults

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emma roberts is fucking hot reeeee

They're going to depopulate, then repopulate, sub-Saharan Africa. There might be a few niggers left in zoos, but that will be it. China will have some lebensraum and you will never hear about it on the news.

lmao u faggots export your inflation. Come to argentina you'll see what real inflation looks like

Africa will break China like it did all the colonial powers that came before it. Introducing nigger DNA into your gene pool is never a good idea.

This. There is an overwhelming abundance of untouched resources there, and it still isn't worth it. Every empire, every country that has ever tried has ultimately found that it costs more money to be there than you can drag out of the ground.

This is literally the only thing I’m banking on that I think will stop China from taking over the world

bingo

there is further evidence when you look at the median income and see that it hasnt changed since 2000 even though trillions of dollars have been pumped into "the economy" aka equities

Idk dude. Food and electronics are just as cheap if not cheaper. Housing has risen but only gradually in the US as a whole.

Buybacks are used to avoid taxes and have little to do with inflation

It's because it's based on baskets of goods. The items inside the basket are variable.

For example, they decide to base it on a meat + vegetable + grain + rent + gas + beer. In the 80s, it may have been a steak, potatoes, bakery bread, rent in a suburb, gas, domestic beer. By the 90s it's chicken and rent in a middle American town. By now it's a can of fish, carrots, low-grade store bread, rent in a suburb of a middle american town, etc.

So long as there is a similarly priced alternative to swap an item in the inflation index to, they will do so and claim that "food" and "rent/mortgage" are the same. If consistent goods (poor/lower middle/middle/upper middle/luxury) were tracked and these were regional people would lose their shit. People would move around more, scream for change, and skilled labour would be baking similar inflation into their rates.

china

Quality of goods has been going down, this is also inflation

they'll start moving to china in droves like they have done with every other colonizing power

I can still order things for a $1 at Taco Bell so inflation isn't/hasn't been that bad.

That goes for all business models.

bruh
In Brazil alone we had an inflation of 10% on the fucking beans and rice price
imagine if they published the oil price inflation
Central Banks are all fucking scammers running the biggest fucking scam of all time