Nothing wrong with tossing your four cents in there!
Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next discussion with that very intent.
It's awfully hard to get at what constitutes inflation. Obviously, the spending needs for a 25 year-old (apartment, food, entertainment) differ from that of a 45 year-old (housing, tuitions, insurance, healthcare, food) and 65 year-olds (housing, healthcare, food). However, the government statistics are clearly linked to the desire to 'limit' perceived inflation.
Examples. Last night I looked at tuition increases at some major private and public universities in the US. A quick survey of about ten, shows an average of 7 percent. Concerning energy, gasoline prices in the Northeast have risen 46 cents over the past 52 weeks. Two pounds of potato salad in my refrigerator have a price tag of $7.99. Malpractice insurance in the Commonwealth of Massachusetts has increased double digits during each of the past four years.
Inflation is not an abstract concept. Neither is it the Word of financial gods, Alan in Wonderland and his merry band of Central Bankers.
Someone is capable of producing reliable data concerning sector inflation: housing, healthcare, energy, insurance, consumer non-durables, education, entertainment. We can argue about how those sectors contribute to our individual inflation. Until someone does that, we are at the mercy of disingenuous 'forces' for which we pay taxes. Empty suits saying there is no inflation is a cruel joke or the big lie, no matter how they slice it.
Minyan Ron Sen, MD
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