When does Core inflation become like--ah, real Inflation?
I sit here and ponder this Question. Housing is up drastically, Rents are up seriously, Utilities are fracturing their Charges again to boost the Consumers, Gasoline soars, Diesel surcharges are being added to Transport Costs, Health Care Costs zoom, and Checkout Clerks are having to learn how to count again. Coffee shops are thinking of renting tables by the Hour. What exactly are the volitile Products subtracted from the overall mix?
This Author reads that the price of Oil stays over $71/barrel because of sustained Consumer demand. Huh? Must be all those Mexicans flocking across our Border, they must operate Gas-guzzlers. It could not be Oil-rich Arabs playing with the Oil markets. I remember when the Hunts tried to corner the market with Silver; I thought I had a fortune because I had some lbs. of Silver, but the Market collapsed. Do OPEC countries feel artificially wealthy?
I still should get back to the original question, like when are We supposed to consider Inflation real. Is it when they confiscate this Computer, in lieu of payment of the Electric bill? Or can it be considered Inflation after they have emptied your wallet and taken back your Charge Cards? The reality remains that the Concept of Core Inflation becomes more nonsenical by the day. This is not to say that the Fed should raise rates further; in fact, those Rates should be lowered to minimize Business and Consumer Costs. Taxation is the correct Currative of Inflation, and the only one that works. Only higher Capital Gains taxation and non-exempted Income taxes have any ability to stop, and eventually reduce Inflation. lgl