Here’s the Inflation – in Stocks, Real Estate, Higher Ed ~ Ryan McMaken … (Death of the Dollar–32) with Link to Full Story

[majes.tytyty]

Inflation is hiding in plain sight. And it’s already extracting our wealth.

Ryan McMaken –

"Where's the Inflation? It's in Stocks, Real Estate, and Higher Ed"
_{(Right-click title to see original story)}

_{(Image source)}

– Flash Points –

1 – Price Changes are not Homogeneous
2 – No Deflation Here: Housing, Healthcare, Stocks, and Education
3 – Low Inflation Is Not "No" Inflation
         _{(The above 3 points are repeated verbatim from McMaken’s article.)}

– Synopsis –

In a recent article for Mises Institute, senior editor Ryan McMaken explains how inflation is already upon us, and that it’s hiding in plain sight.

Inflation – It Depends Where You Look

Whether or not we experience or even notice inflation may vary widely, depending on our socio-economic status, our age, or various other factors.

For instance, the price of oil has dropped over the past few years. Therefore, anyone whose business relies heavily on transportation would likely not see any inflation. Similarly, clothing prices have also been dropping, meaning that inflation might not be noticed by those operating in that sector. 

Inflation – Look Here 

On the other hand, anyone buying real estate or stocks, or anyone enrolled in higher education or needing healthcare, will probably realize that inflation is hitting them hard. Over the past decade, the cost of higher education has grown 30%. During the same period, housing prices are up about 50%, and the Dow Jones has risen over 100%.     _{(Image source)}

Inflation – Look Closely 

Even though inflation may appear to be low or slow, it is in fact occurring, and it may be coming faster than we believe. In fact, at a supposedly “low”  level of 2% inflation, purchasing power will be cut in half over 20 years.

– Insight from Outside –

Inflation can proceed just as bankruptcy does – first slowly, then all of a sudden. And when it comes, it will take away much of our wealth. 

Inflation – Coming for Your Wealth

As we saw above, inflation results in a decrease in purchasing power. In a very real sense, that decrease is a form of “wealth extraction.”  If your annual budget for food is, say, $10,000, after 10 years of inflation, that $10,000 might buy you only 6 months’ worth of food.

At the same time, the increase in stock and asset prices is an insidious form of “wealth transfer.”  It’s a tried-and-true method of taking from the poor and giving to the rich.

Furthermore, a knock-on effect is the increasing wealth gap – between the top 10% or so and those in the lower- and middle-income brackets.

Inflation is coming – for you.    _{(Image source)}

          Previous posts in this series – "Death of the Dollar, Posts 1–30"  

Comments

[bhoa]

The inflation is hitting Nigeria so badly. Every day the price of fuel is increasing. I bought it at a higher price this morning.. the price of everything is increasing. Online stores make it worse.. it's just so sad

[majes.tytyty]

Sad indeed. Particularly since it will most likely get worse.

[gandhibaba]

I hate to say that you're right but you're right, rightly right.

[majes.tytyty]

Thanks. I hate to say I'm right, too. So, I just hope that, after all the economic carnage, we'll be left ... here ... in peace. Right!!

[gandhibaba]

I hope so. You're right. Let the wise take precautions.

[trabajosdelsiglo]

It is interesting to see how these percentages scare first-world people to get an idea of what they experience in Venezuela every day the currency devours 2 to 6%, on a good day it loses up to 30% of its purchasing power. We live different realities.

[majes.tytyty]

As time goes by, more people will "get an idea" of what inflation is. Certainly, they'll get more than a few ideas. They'll get plenty of reality about inflation, probably even hyperinflation.

[wiseagent]

The idea of ​​inflation in your post is very interesting to understand.

[majes.tytyty]

Yep, interesting and frightening.

[gandhibaba]

Inflation can proceed just as bankruptcy does – first slowly, then all of a sudden. And when it comes, it will take away much of our wealth.

I think the situation is even worse in developing countries where imports by far outweighs exports, where the brunt of the dollar-printing spree is borne. For people like us who hold crypto assets, we have very little or nothing to worry about.

Ps: Your writing style remains an inspiration and a guide to youngsters like me. Cheers!

[majes.tytyty]

When I lived in India about 10 years ago, after the 2008 crash, we saw immediate food-price inflation. That will hit the developing countries hard again.

p.s. Thanks for the praise / compliment. So good to hear that you appreciate the effort I put in to making readable posts. :-)

[beckie96830]

Inflation in monetary policies can be seen as a situation where by there's too much money in circulating chasing few goods.

This is caused by the present economic situation. We don't seem to be moving out of it anytime soon.

❤️❤️❤️
Becky.

[majes.tytyty]

Exactly. Too much money, with too little value. It's simple math. But of course, our fearful leaders are incapable of realizing that, and incapable of leading us out of this dire situation. In fact, they are leading us into an ever-worsening situation.

[tipu]

Upvoted 👌 (Mana: 8/32)