08:22 – I’ve issued purchase orders for the bulk of the components for the first batch of biology kits and another batch of chemistry kits. I still need to issue a bunch of small POs to vendors that supply only one or two of the kit items each.
Once again, the effects of inflation were very noticeable. Since my last batch of orders in November, prices have increased by an average of maybe 6%. Many prices were unchanged and there were even a few reductions, but some prices increased by 15% or more, and the price on one item literally doubled. The main reason for the increases is that vendors issued their 2012 price lists in January, which they’ll generally honor through June or December, depending on the vendor.
Right, so you will agree with the US govt. that the inflation rate has been around 2%-3% for the last couple of years, and lower, the year before that!
Of course, the real inflation rate is around 6%, perhaps higher, but the government would never want to admit that, as it would explain why people are feeling poorer year-over-year.
Meanwhile, having just done some dollar purchases, I note that the dollar’s value against the Swiss Franc is not much more than half of what it was back in the year 2000. Between them, Bush and Obama have pretty much destroyed half of people’s savings and pensions.
Eh? No, I don’t agree at all that it’s been 2% or 3%. As I said, my average cost increase was about 6% since I last placed orders about three months ago. In some cases, that increase is based on prices set in January 2011, but in many cases either the vendor issues new price lists twice a year or increases some prices individually off the official price list.
The Swiss franc has also been inflated since 2000, so your estimate of the federal government destroying half of people’s savings and pensions is low. It also takes only minimally into account the deficit. As of now, I’d guess that on average people have effectively lost between 75% and 90% of their pensions.
Since no country in the world currently has actual money, it’s very difficult to estimate true inflation. I think probably the only way is to use a fixed market-basket of commodities. I’d set that up initially based on average spending per person devoted to things like food, gasoline, rent, clothing, and so on. Actually, to be truly representative, everything in the basket would have to be fungible. A pound of grain or butter or peanuts doesn’t change. When you get into non-fungible items like clothing, it’s easier for the government to distort things by claiming comparability when items really aren’t comparable.
Sorry, I wasn’t being serious. You said 6%, and that agrees pretty exactly with the old (pre-1990) measure of inflation.
You’re right of course. In addition to “normal” inflation, the Franc is now tied to the Euro, which is inflating at an impressive rate due to the European debt crisis – with no end in sight. So the only alternative the Swiss have is to print money, in order to keep the value of the Franc sinking as fast as the Euro. The results haven’t really hit here yet, in terms of noticeable inflation, but it’s only a matter of time.
The best line I saw recently about inflation was, It’s a good thing inflation is non-existent. Otherwise no one would be able to afford to buy anything, what with prices going up so much.
The best line I’ve heard about inflation was from Glenn Reynolds who said the price of everything he buys is going up, and the price of everything he owns is going down.
I heard that the five second rule has been changed to ten seconds for the duration of the recession.
Let’s tax inflation.
Same observation here for components that go into my electronic kits, but with more variation. Some components have doubled in price in the last 12-18 months, most, fortunately, increased much less.
A few items I direct source from China. Those prices have held stable for the last 24 months or more.
Shipping (USPS Priority Mail) just had a bump up as well.
Time to look at a price increase in my kits.
But, officially there is no inflation to speak of. The only good thing that can come from those statements is the increasing disconnect between what government says and what people see in their everyday life may lead to questioning the honesty of government in general.
As most taxes are not index for inflation, inflation is already taxed.
Jack wrote:
Only if the public is smart enough to discern the difference. I suggest that most are not. And the ones who are, aren’t interested in becoming involved in politics in order to change it.
A lot of people argue that capital gains tax IS a tax on inflation.