Calafia Beach Pundit shows how the U.S. has been experiencing both long-term inflation and deflation at the same time. Essentially, the cost of services has been rocketing higher, just as the cost of durable goods has been rocketing lower:
The widening gap in this chart is a graphical representation of prosperity, where an hour's worth of labor buys more and more things. The difference between these two lines amounts to an increase in consumer purchasing power of a little over 100%, which in turn is solely due to a change in relative prices. The change in relative prices, in turn, is due primarily to the increased productivity of labor. The average worker today (and around the world) is able to produce far more than ever before with a given amount of work. In short, this chart is showing us just how much more valuable labor has become relative to things.
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The next time you find out that repairing your watch or your computer or your pocket digital camera costs almost as much as buying a new one, remember this chart.
Some bemoan the fact that America has moved increasingly towards a service economy, but given the pricing trends above, perhaps things would be far worse right now if America hadn't learned to produce more 'hard goods' with less people. Americans would be earning less for their labor, since productivity would be lower, and buying less durable goods per dollar since the cost of hard goods would be higher.
Link Here..Warning Signs Of Full Spectrum Collapse Are Everywhere
More Here..
Well it did cost less for me to buy a whole new PC than have my old one fixed and it was only just over a year old.
ReplyDeleteDon’t worry the messiah Obama will get those lines going in the right direction.
ReplyDeleteHe said “Fix the dam lines!”
WTF!
ReplyDeletethe messiah w bush really did well for this country, even though he left it in a depression
ReplyDeleteHmmm well now I know at least I'm not crazy.
ReplyDeleteI knew everything I buy, pay for or need damn sure didn't go t "0" like the interest rates, but has been going up. (U listening uncle ben)
So like I thought, if you buy a ton of iron ore a week to dump in your back yard you probably made out.
The coming depression is world wide due to greed, evil men bringing in a new world order , it is all manipulated.The elites want the economy to fail, yes even Obama. Look into these secretive G8 and G20 meetings. What are they hiding? Wake up people do some in depth study. You have to get informed. Stop following the herd. Obama is dangerous
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ReplyDeleteEven if all 2%-5% of people who see it happening unite and rant/rave/protest it's too late.
ReplyDeleteThe wheels on this runaway train are in motion and there are NO brakes...But just like Rome we won't COLLAPSE...It'll be an incremental, slow, steady dip into the mire.
Prices on necessary things will go up (food/gas/meds) and down on useless crap (Electronic gadgets/fancy houses/Furniture)...Taxes and crime will rise...Services and businesses will go down...People will adjust and shrink in size of appetite/spending but it's TOO late.
Not being some apocalyptic wet dreamer just a realist...Truth be told I'm just a small cog in the wheel but if there is "Peak Oil" then we're screwed.
Lack of fuel = Lack of food/services/work = Anarchy/Crime/Looting.
People become very feral when it comes to survival...Doesn't matter the country or race...God knows most of the US has almost NO survival skills so looting will be their thing till they eat everything like the locust but producing nothing to replace it.
I just had this argument over at Business Insider, which claims we are in a deflation. However, I say it isn't that prices are falling (they aren't)--it's that nobody is buying anything.
ReplyDeleteIf all the basic necessities have gone up in price, then it doesn't matter if the price of cheap, toxic, falling-apart Chinese shit has gone down. By the time I have paid rent (or mortgage), taxes, food, and energy, I don't have much left. I am not going to waste it on toys. Nor will I buy anything new if I can avoid it.
Twenty-five years ago, a VCR recorder was $400. Two years ago I could get one for $120. Now I have to pay $200. If my salary is $8 an hour before taxes for asking "would you like fries with that?" or providing part-time care to a disabled person, I'd still have to work almost a week to afford one. What's so great about that?
People can see the writing on the wall/ Check out his You tube video http://www.youtube.com/watch?v=cfwnCkX4itc
ReplyDeleteYoung woman are getting trained to survive.
Since everything is tied to your SSN number then its time we just stop using it. I understand some of you may be like how the hell do you do that. They want you trapped in their money system like rats, it was all voluntary anyway. You volunteered to use thier number for who you are and now they are cashing thier bonds on you hoping they can make a few bucks off your death, even if it is a SLOW DEATH.
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