Really? Are these so called economists actual economists or are they just news reporters claiming to have heard a rumor that economists are mystified?
Let me shed some light on this mystery. We do have inflation! With a global economy, it's just not as noticeable in some sectors.
Where we have been impacted, marketers have done an amazing job at disguising it.
In the movie Christmas Vacation, Chevy Chase flips off a couple crazy drivers, but hides it from his family by diverting their attention saying "Hey look kids, a deer!"
What was a 16 oz. package of hot dogs is now down to 12 oz. and the price is up about 50% from just a couple years ago. Considering both factors, inflation is over 100%! The still weird "10 pack" couldn't shrink to an "8 pack" because it would be too obvious and we would create a ruckus! They just have slimmer dogs. If you called the factory, you would probably be given a great diversion reason, like they are better for you because they have less calories and their smaller packages reduces their carbon foot print. So, it's all good! Right?
The economy, jobs, home prices, interest rates, #AffordableCare act "Obama-care", Iran's nuclear armament and so on has been the diversion and we've all been pre-occupied to really pay much attention.
Secondly, we haven't really felt it yet. Gold is no longer the counter balance for the US Dollar. So the affect is no longer immediate. It will take a long time to fully realize the impact this "stimulus" has given us because the US dollar is just an IOU to be paid in the future.
The $85B monthly stimulus reminds me of a concept my dad taught me when I was young. "Horsepower hours."
You can take a small engine and get a lot of horsepower out of it, but it will result in a shortened life. Or you can demand less horsepower from it and extend it's life. Either way, the life expectancy is in direct proportion to it's output. This $85B monthly "stimulus" will have an equal but opposite negative affect.
We are digging a hole to China and when we get there, we will hand them the keys to the Whitehouse.
Inflation is here and we ain't seen nothing yet.
Stop the bond buying! Get fiscally responsible and Lord, heal our land.
Curtis Rudolph Realtor®
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