I am not Liberal. Are you?

[southpaw]

More semantics FF?

[fleaflicker]

I am entitled to my opinion, and if my opinion is agreeing with points from both sides, I am allowed to do that. However, the fact remains, that a dollar cannot buy as much today as it could buy 3 or 4 years ago. Heck, all you have to do is look at the price of gas to see that!

[southpaw]

Actually FF over the past roughly 5 years we have been in defaltionary period. That's why the FED lowered interests rates to almost zero and fiscally smart people refinanced their mortgages several times to save $1000's!

Inflation this past year has crept up somewhat but not anywhere near like it was in the 70's and early 80's! Crude oil price is the main culprit as it affect most sectors of the economy.

[fleaflicker]

What about the price of food and beverage? I believe that the price of several goods have gone up, even if the price of homes and cars have gone down somewhat.

[D-nice]

home prices are rising quickly. i'm glad i bought a home during the low interest boom. three years ago.

[southpaw]

All related to transportation costs which in turn is subject to crude oil prices.

[fleaflicker]

Ok, if the U.S. dollar was in a deflationary period, wouldn't that mean the value of a dollar went down against foreign currencies? If that's true, then this deflationary period would only affect the value of a dollar in foreign countries, such as in stock prices and such, not necessarily the amount of goods and/or services a dollar would buy at home in the United States.

But with the price of crude oil going up, sending the price of many other things with it, a dollar at home will buy less and less. Regardless of the cause, since a dollar is not able to buy as much as it could a few years ago, whether it be oil, cheese, or bread, wouldn't that be inflation? As in, two years ago I could buy a 24 oz. soda for a dollar, but now a dollar will only buy me a 20 oz. soda. Or, a few years ago a two dollars would get about a gallan and a half of gas, but now it will only get a gallon. That is what I would call inflation.

[southpaw]

I nominate FF to be the next Chairman of the Federal Reserve. He obviously knows more about capitalism and inflation than Alan Greenspan. I'm sure you soda analogy will impress him.

My point FF is that the world doesn't operate like you read it in a textbook. Some countries like China artificially float their currency against our dollar to favor their market making exports to the US attractive. Crude oil is subject to supply limits by OPEC to manipulate the prices. The world doesn't operate exactly as it should in Adam Smith's Wealth of Nations!

[southpaw]

Here is another example. Five years ago the price of good PC from Dell was about $2000. Now I can get an even better PC for about a third of the price. Where's the inflation?

[Pale Rider]

The Consumer has to be savvy when he spends his hard-earned 'devalued' dollars. Stay the hell away from the Sheetz "Big 64 OZ'er" and buy an off-brand 3 litre soda for 79, 89, 99 cents. Go to the bakery outlets and buy day old bread for less. Plan where you are driving so you can go to work, school, shop, a ballgame, whatever without using up all that precious fuel just running around to show your friends what a cool ride you have. Don't accept freeloaders. If someone knows they can take advantage of you, they will. If you are going with someone else, offer a few bucks to help them out unless they are a stinkin' rich Republican and don't really need your offer. Buy clothing at a bargain store instead of the 200 dollar brands. Be a penny pincher now, live like no one else so years from now, when you aren't in debt up to your crack you can LIVE LIKE NO ONE ELSE! Be a shrewd investor.
Example. I bought a brand new 1998 Monte Carlo and traded in a 1991 Plymouth Acclaim I had bought new. The difference total with trade was 16,000. My monthly payment was 310 for 60 months. Once it was paid off, I had decided to buy a brand new 2003 Impala. This car listed for 27,000, or 7K more than my MC which was now 5 years old. The rebates and incentives that GM was offering at the time was too good to pass up. I got a $7,000 more list price car than what I had, for the same number of months, 60, and my monthly payment was, guess what- 309 and change. I call that shrewd dealing. There are some great deals out there, you just have to know where to shop. Wally-world instead of high pricetag stores. Hit the flea markets and garage sales for bargains. Some people even make a LIVING doing this. One man's junk is another man's treasure!