Gee, with everything costing more these days, its a welcome relief that
inflation is so low; Otherwise, we’d really be in trouble!
That was my response to the ongoing debate at RM about inflation versus deflation. I respectfully suggested those gentlemen consider the following:
Consider the importance of Copper as an industrial metal: Copper
But its not just energy and metals: A chart of education costs, particularly
Affordability Index — comprised of the primary expenses of owning a Home,
including purchase price, mortgage rates, insurance, property taxes, and
maintenance — has reached a 14 year low.
Further, may I suggest that you speak to several people you know personally
(within this country), and ask them, if generally, they are paying more or less
for the goods and services they buy. (Then explain to them why they are wrong).
I will point out the one area where inflation is decidely not making its
presence felt: Wages. Unfortunately, in a country where spending is 70% of the
economy, this is hardly a good thing.
Lastly, I have heard through the grapevine that Gold at 18 year highs might
actually have something to do with inflation; But at this point, its merely a
I think these guys are very wrong on this. Thanks to them, I am going to have to
take time out of my busy day to pen a column explaining what inflation actually
is, why its bad for the economy, and how we can easily measure it.
Are we sick of all this inflation chatter yet?