Spending too much...

[ProbabilityZero]

I've got the lowers so I ain't sweating the ban What I don't like is not being able to shoot 500 rounds every sunday. That's my version of "church". These damn infowars people bought up all my .22LR

I've seen the documents.

 

[marko]

HISTORY TELLS US
that this is the policy the US gov is taking.
Pay back the lenders with inflated dollars.
[ (germany did that same thing after being charged alot
of DeutscheMarks after WWI - they said ACHTUNG!
Here is a billion (or whatever - too lazyto look it up)
DM which might NOW buy a Volkwagen
and we paid off your reparations..
NEXT?]
The superduper TRICK the Fed and .Gov is - there APPEARS to be 'no inflation' now.
Look at the gas pump.
Buy a steak.
Buy some .22. I SEE inflation.

 

[fabsroman]

HISTORY TELLS US
that this is the policy the US gov is taking.
Pay back the lenders with inflated dollars.
[ (germany did that same thing after being charged alot
of DeutscheMarks after WWI - they said ACHTUNG!
Here is a billion (or whatever - too lazyto look it up)
DM which might NOW buy a Volkwagen
and we paid off your reparations..
NEXT?]
The superduper TRICK the Fed and .Gov is - there APPEARS to be 'no inflation' now.
Look at the gas pump.
Buy a steak.
Buy some .22. I SEE inflation.

Yeah, but those are only on certain items. The increase in gas prices has a lot to do with China increasing demand. The increase in food prices has a lot to do with the drought. The increase in gun prices has to do with the panic buying. Show me where there has been a huge increase in house prices. Not anymore because the panic buying of 2002 through 2006 is over and done. There really isn't that much inflation right now because people are still hurting. That is, people are not going out there and spending money like it is water anymore. Unemployment is still rather high too.

It will be a while longer before we see any sort of significant inflation.

 

[marko]

It will be a while longer before we see any sort of significant inflation.

Gas 2007 $1.89 now $3.50+
Drywall $4.85 now $7.50
Milk $2.79 now $4.00
Peanut Butter -Doubled in price.
Tobacco, loose - tripled in price.
Booze - 10 cents per 8 ounces increase..
Dream on you are getting suckered.

Drink some more Kool AId, the Gov SAYS there's no inflation, you're dreaming, buddy.

 

[marko]

How much are tires now? Michelin LTX M/S - probably $180 each now.
Class, inflation is happening right before your very eyes.
QE = quantitative easing = Gov printing $$, propping up the stock market.
Like the Krauts did in the late '20s.
HEIL!

 

[fabsroman]

Gas 2007 $1.89 now $3.50+
Drywall $4.85 now $7.50
Milk $2.79 now $4.00
Peanut Butter -Doubled in price.
Tobacco, loose - tripled in price.
Booze - 10 cents per 8 ounces increase..
Dream on you are getting suckered.

Drink some more Kool AId, the Gov SAYS there's no inflation, you're dreaming, buddy.

lol - yeah, a CPA/attorney is getting suckered about inflation. Now, how about comparing house prices. Compared to what our current house sold for in 2005, we paid 33% LESS for it in 2011. Our townhouse, purchased in 2004, we sold for 10% less if we do not take into consideration the remodel expenses. If remodel expenses are taken into account, we sold the townhouse for 33% LESS than we paid for it.

If you want to pick and choose an item here or an item there, I am pretty sure I can start doing some off the shelf comparisons and find that there isn't very much inflation. Neither your method nor my method would be very scientific.

As far as gas is concerned, it was over $4 during the run up to the crash, so I doubt that $1.79 figure of yours is entirely correct. After the Great Recession though, it fell precipitously to somewhere back in the dollar range.

Ultimately, one of the metrics used to monitor inflation in the science of economics is called the Consumer Price Index ("CPI")

http://www.bls.gov/cpi/

A consumer price index (CPI) measures changes in the price level of consumer goods and services purchased by households. The CPI in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services."[1]
The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies. The annual percentage change in a CPI is used as a measure of inflation.

http://en.wikipedia.org/wiki/Consumer_price_index

 

[fabsroman]

How much are tires now? Michelin LTX M/S - probably $180 each now.
Class, inflation is happening right before your very eyes.
QE = quantitative easing = Gov printing $$, propping up the stock market.
Like the Krauts did in the late '20s.
HEIL!

Well, I will agree that quantitative easing is propping up the stock market, along with very good earnings reports from a lot of companies. Quantitative easing is also keeping mortgage rates and other consumer interest rates rather low right now. I just told my wife this afternoon that I am very tempted to take almost everything we have in stock mutual funds and move it into some more cash oriented like a CD or money market fund. I think the stock market is grossly overpriced right now.

Again, the tire example is a poor one. They are petroleum based products and we already know that the demand for petroleum has gone up because of developing China. China has a huge amount of industry and population.

 

[Traveler]

lol - yeah, a CPA/attorney is getting suckered about inflation. Now, how about comparing house prices. Compared to what our current house sold for in 2005, we paid 33% LESS for it in 2011. Our townhouse, purchased in 2004, we sold for 10% less if we do not take into consideration the remodel expenses. If remodel expenses are taken into account, we sold the townhouse for 33% LESS than we paid for it.

As an accountant and attorney, you may have heard of the recent event called the housing bubble. That's where home prices were unnaturally high for a long time because people who could not afford houses, were helped by .gov to buy them. Then, surprise, they lost them when they could not keep up. POP goes the bubble.

 

[fabsroman]

you're kidding right? what about the changes in the definition of the good old CPI to cost of living basis and not inflation? what about fuel and home prices? yeah the prices of the big screen TVs have gone down but how many of those does one need. or is it due to the good or bad weather again?

Give me some facts. You guys are starting to sound like the liberals now. The sky is falling, the printing presses are killing us, there is massive inflation because the price of oil products have gone up along with food because of the drought.

Give me some metrics that show inflation. Show me how they have selectively adjusted the basket of goods used for the CPI calculation. Stop being liberals, unless you just happen to be liberal gun owners that actually visit this forum. In that case, carry on.

 

[Alphabrew]

I think the stock market is grossly overpriced right now.

 

[GoldenRing]

I have made the mistake of stock piling guns and not hoarding ammunition. Now I have piles of firearm's and absolutely 0 ammunition to put through them. If there is a zombie break out tonight I would be on the streets tryin to trade a $700 AK for a few rounds of ammo.

 

[4095fanatic]

I have made the mistake of stock piling guns and not hoarding ammunition. Now I have piles of firearm's and absolutely 0 ammunition to put through them. If there is a zombie break out tonight I would be on the streets tryin to trade a $700 AK for a few rounds of ammo.

In theory you didn't make a horrible decision... AK's are selling for up to 2-3 times their current value and so is ammunition. Either trade with somebody for pre-panic rates, or you can sell an AK at panic prices and then roll that in to buying ammo at the inflated prices and still come out even (or just sell it for a profit, patiently wait for ammo to come along, and come out ahead).

 

[NarlocB]

And here i am just wishing for the PANIC BUYING to end......prices are so high, those living paycheck to paycheck are completely screwed until the crazy demand drops.......

 

[fabsroman]

how about go ld as an example? Supply & demand? Who would want such a useless relic? Inflation is not lib or conserv.

Again, just picking something that has gone up. How about the rate of interest on savings accounts? Usually that rate goes up when we have inflation, correct? How about the mortgage rate? In the process of refinancing at 3.5% right now. Pretty low, isn't it. When we have inflation and an economy that is doing well, then the mortgage rate is usually a lot higher than 3.5%. That rate has been dropping since we bought this house two years ago. Started at 4 7/8%, then refinanced for 4 3/8%. Now, 3.5%.

Next, you are going to tell me that the price of plutonium is sky high.

Simply put, gold and stocks are over priced because they are a few of the places remaining for anybody to put their money into. Nobody is putting money into bank accounts right now. Food is high because of the drought. Oil is high because of China increasing demand. How about textiles? A pair of Carhartt jeans is still right around $30, which is what I paid for mine 5 or so years ago. Carhartt sweatshirts are still around $40.

Inflation isn't that bad at all right now.

 

[fabsroman]

And here i am just wishing for the PANIC BUYING to end......prices are so high, those living paycheck to paycheck are completely screwed until the crazy demand drops.......

If you are living paycheck to paycheck, you would still be screwed even when demand does drop. Living paycheck to paycheck means no funds for anything other than necessary living expenses.

 

[hdatontodo]

re Investing in Cash

That would not be diversified investing. Rick Edleman said you can't time the market and have to be in it when it makes a quick surge upward.

Sent from my DROIDX using Tapatalk 2

 

[fabsroman]

re Investing in Cash

That would not be diversified investing. Rick Edleman said you can't time the market and have to be in it when it makes a quick surge upward.

Sent from my DROIDX using Tapatalk 2

Yeah, problem is when you are in it and it makes a quick surge downward. Yeah, you are supposed to use dollar cost averaging, but it is kind of tough when you have 100's of thousands of dollars sitting there in a market that feels way overpriced because it has been kept afloat by the Feds' QE and the very low interest rates in bank accounts. Granted, prior market performance is no indication of future market performance, but this looks a lot like what happened just before the market crash in 2000 and then again in 2008. Shame on me in 2008. Trying to avoid that in late 2013 or 2014. The gains since 2008 have really been rather incredible.

Maybe we'll just diversify into some rental real estate now and get back into the market, if/when it takes a dive.

And I take my advice from stock brokers and mutual fund managers with a grain of salt. While I was in law school in 1997 I was asked to participate in a lecture on estate planning and retirement planning. My boss' retirement planner was doing the retirement planning part and I was doing the estate planning part. He went first and was advising these people in their late 40's and early 50's to take out a full mortgage on their personal residence if they had it paid off and invest it in the stock market because the stock market had beat out real estate over any given 30 year span for which records had been kept. Of course, that means that a person would have to live 30 more years to ensure that this held true AND prior performance is not indication of future performance. I loved that last line of his. If somebody did that in early 2007, they would have taken out a mortgage on their house, would owe more on the house right now than it is worth, and their stock portfolio probably would not equal what they owe on their house.

 

[RavensChick]

Same goes for when my wife, a pharmacist, tells me what some of these prescription drugs cost. Finding out about how much Coach purses and scrap booking stuff cost was also an eye opener for me.

Coach purses can be bought via outlet store and online at a nice discount. 9mm ammo? Not so much.

 

[RavensChick]

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