Wednesday, June 15, 2016

Bondage Fantasies at the WSJ

The above click bait headline comes courtesy of Paul Krugman.

His post is as absurd as the headline. At one point he writes:
Seven years on, the inflation never materialized...
In the last seven years, price inflation as measured by the consumer price index has climbed from 212 in April 2009 to 238 in April 2016, a gain of 12.2%.  That means anyone retired on a fixed income lost 12.2% of their purchasing power during the period.


Which is to say nothing about the cost of the fundamental expenditure: rent. 

The Bureau of Economic Analysis Index of Rental of Tenant-Occupied Housing has climbed from 359.7 in 2007 to 448.7 in 2014 the (last year for which data is available). A gain of 24.7%, which no doubt has increased even further since the 2014 data point,


Krugman's price inflation denial is, of course, because he wants more monetary inflation out of the Fed.

Current, price and monetary inflation isn't enough for him.

As I have been pointing out in the EPJ Daily Alert, for a variety of very specific reasons, we are at the cusp of a major new acceleration of price inflation and Krugman, the fool, is putting himself on record in writing that he is not concerned about price inflation or the current Fed low interest rate policy.

To quote from another part of Krugie's post:

 Hahahahaha.
 -RW

3 comments:

  1. Guys like Krug probably don't do their own grocery shopping and so do not feel any market pressure at all. That's my guess.

    ReplyDelete
  2. I've rented the past two years at $1325/mo. Have to move to a new place and the going rate in the same area for similar size houses is $1600+.

    Trying to decide whether its better to bite the bullet and buy before the rates take off, or wait it out until there's a litany of beautiful foreclosures again.

    ReplyDelete
  3. 1. Dollar General's cheapest brand of cat litter went from $2.75 for 20 pounds in 2010 to $3.50 last night. I paid over $11 for 3 bags (including sales tax). Their $4 reading glasses are now $6.

    2. When discussing things with or about Keynesians, I would always first remind everyone that the market does not fail and there is thus no need for a Keynesian cure. Whenever there is an emission of new funny money, there is a theft and shift in purchasing power to the new recipients and spending this new money will distort prices making them unsustainable without new shots of funny money. These false and unsustainable prices are the basis and cause of the business cycle. We know this stuff cold but non-Austrians haven't a clue about this and need it rubbed in their stupid faces 8 times a day.

    Once these points are made (8 times a day), we can say to the Keynesian that he caused all of that harm (for nothing) PLUS he threw in an additional harmful 12% increase in the "price level" (for nothing). To Krugman, price increases are a necessary result of the funny money cure. He's clueless about our basic concepts and their application and people should be made to understand that about him.

    ReplyDelete