Topic: FINANCIAL COLLAPSE FEAR MONGERING NEEDS TO STOP - page 3. (Read 6241 times)

Hm...

Thats interesting, but did you actually traced price of anything from 2001?

Because from i have learned i belive the official numbers are manipulated , look at the great video cleatly explaining it with simple words

http://www.youtube.com/watch?v=pwI3Nya5L9g

So did anybody tracked the real prices of anything from 2001? Because i belive the shadowstats.com and if it says that the price have in total tripled from 2001, then i belive so... (im not from usa though)


Did you follow any prices?

OMG... you are serious... you didnt know about the faking of inflation? That is NOT a conspiracy theory (!). Lol, that is true... even the way they calculate inflation and other statistics is laughable

Very interesting information. I do have one request though. Could you normalize the first chart in the USA graphs to match the first chart in the Australia graphs? I think that would be much more beneficial as a read. (Australia is average weekly wage, where as USA is average hourly wage.) This might be a little misleading considering that there are some that work part-time, some work salaried (and are essentially paid for 40 hours of work a week) and some work tons of overtime.

Nonetheless, I agree that it is definitely an issue that living costs inflate at a steady rate whereas wages do not follow the same trend that it needs to. I've seen it many times throughout the years.

The 'shadow stats' inflation graph is showing ~9% per year inflation in the US since 2001, if that were true then today prices would be TRIPLE what they were in 2001.  This is patently absurd.  Meanwhile the real numbers average ~2.5% which gives us an increase of 40% which actually jives with reality over the last 13 years.  I think peoples inability to understand compounding leads them to believe these inflated inflation rate numbers.

Warning people about the inevitable end of this total charade of a financial system needs to stop? Don't think so. This is not the time for ignorance on the most important and potentially devastating event of our time. Everything is about to change radically.

The economy has already been collapsing for a decade, it is simply accelerating now as the great fake economy built on worthless money by criminal bankers and corporatists enters the final death spiral.

Australia is far from "good", I don't think you really did any research here OP.

Any reason OP you are showing AU stats from '08 and USA stats from '12 ?

Would OP care to explain why he used the post-80's manipulated inflation rate rather than the real inflation rate? I mean, I would just LOVE to believe that YoY inflation in Argentina is only 10% like the government says... lol. Give me a break. Use legit data then we can have a discussion on how healthy the economy is

Those graphs don't disprove anything. Inflation punishes saving and I haven't seen any proof that it actually is good for the economy. People save money so they can spend it on something like starting a business for themselves or doing something else with it, you don't hoard for the sake of hoarding alone. Inflation just pushes people more towards going into debt to start a business or whatever and combined with interest this creates a horrible unsustainable economy which consumes the future in favor of the present until the whole system collapses. We are very close to that point right now. Sticking your head into the sand and saying everything is fine won't help anything.

If the economy is doing so well then why are the global markets having so many problems? Or are you just going claim we need to print more money to 'boost confidence' in the markets? People like you who follow the economic ideology of those in charge are precisely why everyone who can think for themselves is convinced the economy is going to collapse.

I hope this was a troll, I may have been baited :S

Very much agree, since Fear Mongering actually enables people to build and engage in the economy. 

fuck it lets run for the hills.

They base their statistics based on the methodology used by pre-Clinton administrations without for example hedonistic regression.

Can you comment on the validity of the shadowstats?

How the hell do you think that dispeled anything?


Meanwhile - here is the real inflation





The real unemployment

I have watched, listened and read a lot of fear mongering on the internet about economic collapse, if anything I hope to dispel those myths today by showing some graphs.

What makes a good economy using an inflationary model?
A good economy should have inflation(consumer prices) increase at similar rates to the average wage rate of the economy. This would mean that the rising prices of goods and services will be compensated by the increase in the national average wage rate over time. But you may ask why have inflation in the first place? why money print?, this is done to have velocity of money, meaning it promotes people to spend and not hoard money, giving incentive for people to actually start businesses to catch some of that consumer spending.

A comparison between Australia and USA in terms of inflation and wages

An example of a good economy: Australia.
Wages: Average weekly wages.


Consumer prices/inflation:


As you can see the rate of change over time between both inflation and wages is very similar. This allows for a stable economy as it allows for velocity of money while still maintaining affordable prices for consumers.

An example of a not so good economy: USA
Wages:



Consumer prices/inflation:


The US economy inflation rate has actually been quite low and stable, the problem is that wage rates do not keep up, this is causing more disparity in wealth compared to Australia. What needs to happen in the USA is an increase in the national average wage rate to match inflation. There are ofcourse other variables that need to be considered such as unemployment rates but the general point i am trying to make is that these are the things that need to improved on in the USA. Don't be afraid of studying a bit of basic economics no matter how much some fear mongerer wants you to think otherwise, the more you are educated the better you can spot people trying to push you in directions for their own benefit.

And in case you are wondering, I am a crypto-currency advocate because i prefer not to have all the important economic decisions and control of money printing come from a central authority.