Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Inflation - The Real Thing

Economics / Inflation Jul 12, 2013 - 06:20 PM GMT

By: Fred_Sheehan

Economics

"[T]he concept of the general price level is extremely vague and we cannot even speak of a very approximate determination of the average price level. Every index number is to a certain extent arbitrary: the selection of the commodities that are to be included, the choice of the weighting, the base from which the index starts, and, lastly, the mathematical processes applied, are all arbitrary..."

-Wilhelm Röpke, Crises and Cycles, 1936


As everyone not beholden to the current corrupt structure knows, prices are rising at an unseemly pace. Röpke had it right. The corrupt structure abuses the trust it is accorded by claiming "inflation is too low," then publishing inflation figures not worth the paper they are printed on.

Although everyone knows prices are rising fast, there has not been, in general, a rush to get rid of dollars, as there was in the 1970s. The rush was to buy before prices went up. We are approaching a moment or period of recognition, all the more predictable since incomes are flat to falling. Incomes rose through the 1970s.

The backlash will open with revulsion towards government scrip (dollars) and a rush to stuff will follow, particularly into gold and silver.

Without the slightest attempt to cover the waterfront, a portrait follows.

Flipping through a "What to Do" pamphlet when staying in New York, the price for assaulting the Empire State Building, $25, struck an ill-tuned cymbal.

An armchair investigation turned up the following:

Top of Empire State Building:

2001:

Adults - $9 Children - $4

2013

Adults - to 86th floor - $25 Adults - to 102nd floor - $42 "Express Pass to Top" (whatever that means) - $47.50 Children to 86th floor - $19

MOMA - Museum of Modern Art -

2001 -

Adult - $10 Child - free under 15

2013 -

Adult - $25 Children - under 16 for free

Cloisters - Metropolitan Museum of Art, at 190th street in Manhattan:

2001 - adults - $10 "suggested" 2013 - adults - $25 "suggested"

Cab from JFK to Manhattan:

2001 -

Standard rate - $30, plus, pay for tunnels, bridges, which certainly cost more than in 2001. Tip - for the consistent 15% tipper, was lower on the 2001 fare than on the 2013 fare.

2013 -

Standard rate - $52, plus etc.

New York City taxi -basic charge (leaving out: "after 8 PM", bridges, tips)

1 mile -

1987 - $2.20 ($1.15 first 1/8th mile, 15 cents, each add'l. 1/8th 2004 - $3.20 ($2.00 first 1/5th mile, 30 cents for each add'l. 1//5th mile) 2013 - $4.50 ($2.50 first 1/5th mile, 50 cents, for each addl. 1/5th mile)

Source for 2001 prices = Frommer's New York City with Kids

Over the post-millennial period, what served as the better conduit to save or invest for the weekend getaway to New York? The S&P 500 peaked at around 1550 in March 2000 and is about 1660 today. Since 2001, gold (from around $300 to $1200) and silver (from about $4.50 to $19.00) did a better job of paying the bills.

By Frederick Sheehan

See his blog at www.aucontrarian.com

Frederick Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, November 2009).

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Frederick Sheehan Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in