T Nation

Inflation Up Slightly in 2009


#1

WASHINGTON -- Consumer inflation was tame in 2009, with prices rising 2.7 percent. Yet families felt squeezed as their spending power sank in the face of falling wages, job losses and higher prices for energy, medical care and education.

A surge in energy prices last year offset the biggest drop in food costs in nearly a half century.

The Labor Department says its Consumer Price Index rose a modest 0.1 percent in December. Excluding food and energy, prices were also up just 0.1 percent last month.

A separate report showed inflation-adjusted weekly wages for the 12 months ending in December were down 1.6 percent, the biggest decline since 1990. Slack wages and scarce job creation have slowed consumer spending, hindering the economy's ability to mount a strong recovery.


#2

Lying fucking liars, all of them.


#3

you have to take into account who is doing the calculation. I am sure you could come up with a calculation that would give any number of desired outcomes. Just becuase you call this calculation “inflation” doesn’t really mean anything to me.

Consumer Price Index does not equal inflation.

More “money” in the system = inflation.

Consumer Price Index = almost worthless.


#4

I agree, inflation has been more then that, but if you take a look at what Orion posted it shows a clear trend upwards now.

With all the money that is going to be dumped into the system later this year that will go much higher.


#5

Stimulus affects will be over in 6 months. Once that happens job loss will start to pick up again. Obama will then make a speech how we should take the money out of the banks(while making banks look bad of course, people haven’t realized these are the same guys).

Our market is going to get flooded with dollars this year.


#6

[quote]John S. wrote:

Stimulus affects will be over in 6 months. Once that happens job loss will start to pick up again. Obama will then make a speech how we should take the money out of the banks(while making banks look bad of course, people haven’t realized these are the same guys).

Our market is going to get flooded with dollars this year.[/quote]

John, how can you take the money out of banks when it is not there to begin with. The fed has opened up the window so that “reserves” are (at least on paper) adequate to make additional loans while at the same time lowering interest rates to encourage borrowing.
Start pulling this back and banks will have to tighten even more, liquidating assets at distressed prices, and basically creating a self feeding cycle of destruction.
Add to this job loses, with the accompanying repos and foreclosures, it just does not make sense.


#7

[quote]JEATON wrote:

[quote]John S. wrote:

Stimulus affects will be over in 6 months. Once that happens job loss will start to pick up again. Obama will then make a speech how we should take the money out of the banks(while making banks look bad of course, people haven’t realized these are the same guys).

Our market is going to get flooded with dollars this year.[/quote]

John, how can you take the money out of banks when it is not there to begin with. The fed has opened up the window so that “reserves” are (at least on paper) adequate to make additional loans while at the same time lowering interest rates to encourage borrowing.
Start pulling this back and banks will have to tighten even more, liquidating assets at distressed prices, and basically creating a self feeding cycle of destruction.
Add to this job loses, with the accompanying repos and foreclosures, it just does not make sense.[/quote]

when I say take money out of the banks I am talking about the 860 billion bogus dollars they have stored.

We will spend every last drop of it to try and get out of this. These people are Keynesians its what they do.