Welcome login | signup
Language en es fr

Forum Post: What you need to know about price indexes

Posted 7 years ago on Nov. 5, 2012, 12:28 p.m. EST by richardkentgates (3269)
This content is user submitted and not an official statement

Forget about left and right for one second. I would like to reintroduces you to the real enemy, Wall Street. I hear a lot about the right and their obstruction but their obstruction is in the realm of politics, not economics. The jobs bill is a good idea but it's a bandaid, not a solution.

The reason the economy hasn't recovered and isn't going to is simpler than you may think. Prices. They are more than a personal inconvenience , they are the reason for the season. Typically, when demand is low, like now, prices fall in order to get people into the stores and keep product moving. That hasn't happened nor is it going to.

The Federal Reserve is now and has been for 5 years pumping money into Wall Street. This is allowing failing banks to stay afloat, this is adding to the national debt and is the reason for the tax argument that dominates the media cycle. The companies not getting a handout directly from the fed are raising prices to compensate for low demand and the failing banks that are getting the handouts purchase stock or other types of investment in these failing companies and the investment is justified by the companies total revenue, not sales volume, which is willfully blind and unsound. Prices are being jacked up and the national debt steadily climbing all to keep failing companies afloat. This is not a recovery, it's a ruse.

This trend has detached Wall Street and all publicly traded companies from the rest of the economy, removing the need for increased demand to justify investment or raising prices. This will continue until we reach a tipping point when the middle-class can no longer support the economy as they are now. At the rate of price increases we are now experiencing, this reality will unfold mid 2013. It's a game to them, to stop profit loss, they are siphoning off the remaining wealth of the country and concentrating it in the hands of the 1%. It hasn't slowed, it's accelerated, including the timeline of consequence.

Go to the website of the St Louis FED, or any financial website that can provide graphs/charts for production and post-production price indexes. There you can see the inflation that all partisan economists are denying, including Paul Krugman. Don't take their word or mine, go see for yourself.



Read the Rules
[-] 2 points by TrevorMnemonic (5827) 7 years ago

Good post

[-] 0 points by richardkentgates (3269) 7 years ago

Thx. It seems to be a topic that needs more exposure.

[-] 2 points by jrhirsch (4714) from Sun City, CA 7 years ago

Could you make it easy and supply some links?

[-] 0 points by richardkentgates (3269) 7 years ago

I'll work on a blog post that simplifies the topic and post a link to the OP, as time permits.

[-] 0 points by RedDragon (-161) 7 years ago

I'd like to see this blogged; as time goes by such sites will see an uptick in hits.

[-] 0 points by TrevorMnemonic (5827) 7 years ago

A great example of lowered pricing getting more consumers is black friday.

We have a consumer based economy. Policies that remove consumers from the economy are counter productive.