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imsd | 5 years ago
1) Monetary inflation: growth of broad money supply; 2) Asset price inflation: stocks, bonds, real estate; 3) Consumer price inflation: everyday goods
Sure, while consumer price inflation is hovering around 2%, asset price inflation is running closer to 10-20%.
I account for inflation as it relates to the basket of goods and services most important in my life. Some of those items are everyday goods inflating at 2% annually. But the biggest things that matter to me: higher education, a home/real estate, medical care ... these are all inflating at a much, much higher pace. In this way, "2% annual inflation" completely misses the mark.
arcticbull|5 years ago
Asset price inflation is not inflation, its ROI, and until there's a study, we won't really know why assets are going up. It may be due to increased liquidity, it might be stimulus checks, it might be all sorts of stuff. You're speculating, and if you're going to make a claim like that we're gonna need a citation.
I'm not saying these things don't matter, I'm saying [citation needed] that it's got anything to do with the Fed.
If I'm the only doctor in town and I charge $1000 one day for a surgery and $2000 the next because I feel like it, that's not inflation.
> I account for inflation as it relates to the basket of goods and services most important in my life.
Feel free but the rest of us are talking about a specific meaning of inflation which is not the same as yours, and so should be addressed in a different thread to avoid confusing people.
1. Yes, medicine is getting more expensive.
2. It's going up faster than inflation.
3. This is not inflation.
imsd|5 years ago
For the millions of young adults trying to afford a home right now, it is not ROI. For those fortunate enough to have a portfolio of real assets (including a home/real estate), sure.