6% US inflation is coming : Economist

[moh malekpour]

http://economictimes.indiatimes.com..._is_coming__Economist/articleshow/3307499.cms

``High energy prices give American manufacturing workers bargaining power that they have lacked for over a decade, while at the same time encouraging them to ask for larger pay raises to keep pace with the soaring price of gasoline,'' Rubin wrote.

If workers can bargain for cost of living increases, sparking inflation further, then interest rates will rise too, Rubin predicted

 

[Couch Potato]

Glad to here they are going to get inflation back down to 6%.

 

[c w d]

Glad to here they are going to get inflation back down to 6%.

Hehe, yeah, it's laughable. Multiple by 3 and you'll get a good idea of what inflation is currently.

 

[Lloyd Bonafide]

But if you take out the higher prices for energy, food, transportation, and health care, don't we get the core number slightly below 6%?

:new_all_coholic:

 

[c w d]

But if you take out the higher prices for energy, food, transportation, and health care, don't we get the core number slightly below 6%?

:new_all_coholic:

Question is, should these items be taken out? All four are the most expensive REQUIRED purchases on a yearly basis.

Yeah, yeah, I understand why energy and food are taken out. I just don't agree that they should. I mean, if core inflation is at ~4% - 5% but I'm paying 20% more for food and 50% more for energy this year then shouldn't that be measured and accounted for in inflation? Core inflation measures what? Durable goods? Some of which I don't ever buy and others I only buy every few years or decades. Seems to me a nice method of ignoring the obvious.

 

[Mr Rex]

Don't worry, when the socialist gov't fully takes over, they will shift inflation over to the rich folks. Anybody notice that the minimum wage increase resulted in higher inflation and un-employment? I can hardly wait for 77-81 all over.

 

[Couch Potato]

Don't worry, when the socialist gov't fully takes over, they will shift inflation over to the rich folks. Anybody notice that the minimum wage increase resulted in higher inflation and un-employment? I can hardly wait for 77-81 all over.

And of course they will use the global definition of rich, meaning every citizen in the USA.

 

[moh malekpour]

Anybody notice that the minimum wage increase resulted in higher inflation and un-employment?

I know for sure that there is a relationship between higher inflation and higher wage but I am not sure which one is the cause and which one is the effect. Do you know whether higher inflation causes the higher wage or higher wage causes the higher inflation?

 

[c w d]

I know for sure that there is a relationship between higher inflation and higher wage but I am not sure which one is the cause and which one is the effect. Do you know whether higher inflation causes the higher wage or higher wage causes the higher inflation?

Inflation is made up of many different factors. Higher wages just happens to be the capitalists' dead horse, however.

 

[timd354]

No one has mentioned the good news (lol).....it is quite possible that the deflating asset bubble and credit markets which could very easily cease to effectively function in the near future could very well end up causing a general economic depression in the United States and worldwide. If that happens, there will be no worries about inflation.......in any case, we are all in for a rough ride for the foreseeable future.