Wednesday, August 5, 2015

Comparing the cost of living between 1975 and 2015: You are being lied to and fooled when it comes to inflation data and the cost of living.

Inflation is widely misunderstood by the public. Even economists tend to have a hard time coming to a general agreement to the true definition of inflation.  When you ask the person on the street what inflation is they usually respond by saying the “price of things going up” which is more of a consequence of inflation, rather than the cause.  Inflation is like a new car that lacks maintenance. At first, there is little notice of the issue but overtime major problems start occurring and eventually the car breaks down.  If you want to see inflation out of control just look at Venezuela right now where people are swarming stores for basic food items.  In the US inflation has occurred primarily because of the Federal Reserve’s banking policy.  Too much cash (or debt in this case) chasing the same amount of goods.  Only when we look at longer periods of time do we see the insidious nature of inflation.  Yet somehow, the data used to measure inflation misses much of what is happening because it uses derivative like measures.  For example, we use the owners’ equivalent of rent (OER) instead of the true monthly cost of owning a home.  Let us take a look at some data between 1975 and 2015.
The cost of living shuffle:

We continually hear about the middle class shrinking.  But where are they shrinking to?  Much of the disappearing act has come at the hands of inflation.  That is, their income is no longer sufficient to support the items that we once categorized as part of the middle class: a car, a home, college education for the kids, and basic healthcare.  For many Americans, these items are all getting out of reach.  And for those that purchase them, they are required to go into massive debt with banks.

 More here


Into debt we are born and in debt we shall die. That is, unless you tell these parasitic vampire squid bankers to fuck off and live debt free. I'm working on that debt free part right now. Being debt free is true freedom. I think the entire purpose of the debt game is to have us ALL dependent on the .gub in the end to keep living. If that's the case, I'll burn it all down and make sure a few worthless fucks go with me. There ain't enough rope in the country to go around when the American People finally get pissed for being forced without say to participate in this fiat monetary system. You want to know what the only real currency is and always has been? TIME. Time is the only "currency" worth anything in our lives. It has a definite expiration date and decreases by the second for the duration of our entire life. That's an account that never fills back up. What you've got is what you've got. Every hour of our life is a choice, a trade-off between competing priorities and desires. Spend it wisely folks.


Jess said...

In my view, inflation is like adding water to milk. If you add enough, the milk has the same value as water - or worse: the milk is considered tainted and worthless.

Stackz O Magz said...

A wise observation Jess. On the flip side, I guess inflation hasn't gotten to everything just yet... I can still use a dime as a screwdriver.