The Definitive Inflation vs Deflation Debate and What to do About It Thread

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  • Wed, Mar 14, 2012 - 06:17pm

    #211
    joemanc

    joemanc

    Status Silver Member (Offline)

    Joined: Aug 16 2008

    Posts: 138

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    JAG wrote:In the summer of

JAG wrote:

In the summer of 2008 I was payed $3.98/gal in June, $4/gal in July, and $3.71/gal in August. It was these rising prices, and all the “peak oil is here” talk in the blogosphere that made me start keeping track of the prices in the first place.

Yesterday, I paid $3.55/gal, which is close to 2008 prices but still below them. Gas is cheaper on the Gulf Coast because all the refineries are here, but I would happily pay more for gas if I didn’t have to live with refineries in the area.

Your argument is somewhat correct, but also flawed in my view. You earlier mentioned that your dollar buys more gas now than it did in 2008. Correct. But knowing you like to hold on to cash, let’s say you banked away 10K in cash from your business in 2009 and left it in cash, earning we’ll say a paltry .5% interest. How much gas is that 2009 cash buying today? Same thing with cash in 2010…and 2011…I’m not saying cash is bad and gold is great…I own both in somewhat equal amounts, but I hands down favor gold longer term as a store of wealth.

As far as property taxes…wow, I am jealous…will never see that happen here.

And maybe I need to shop at BJ’s for pistachios’…Costco raised the price of a bag from $13 to 16, while dropping the size from 4 to 3 lbs about 2 years ago and I haven’t eaten pistachios since.

  • Wed, Mar 14, 2012 - 07:27pm

    #212
    Davos

    Davos

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    Joined: Sep 17 2008

    Posts: 811

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    On This Day In History…. Gas Prices Have Never Been Higher

joemanc wrote:
JAG wrote:

In the summer of 2008 I was payed $3.98/gal in June, $4/gal in July, and $3.71/gal in August. It was these rising prices, and all the “peak oil is here” talk in the blogosphere that made me start keeping track of the prices in the first place.

Yesterday, I paid $3.55/gal, which is close to 2008 prices but still below them. Gas is cheaper on the Gulf Coast because all the refineries are here, but I would happily pay more for gas if I didn’t have to live with refineries in the area.

Your argument is somewhat correct, but also flawed in my view. You earlier mentioned that your dollar buys more gas now than it did in 2008. Correct. But knowing you like to hold on to cash, let’s say you banked away 10K in cash from your business in 2009 and left it in cash, earning we’ll say a paltry .5% interest. How much gas is that 2009 cash buying today? Same thing with cash in 2010…and 2011…I’m not saying cash is bad and gold is great…I own both in somewhat equal amounts, but I hands down favor gold longer term as a store of wealth.

As far as property taxes…wow, I am jealous…will never see that happen here.

And maybe I need to shop at BJ’s for pistachios’…Costco raised the price of a bag from $13 to 16, while dropping the size from 4 to 3 lbs about 2 years ago and I haven’t eaten pistachios since.

  • Tue, Nov 11, 2014 - 11:49am

    #213

    HughK

    Status Gold Member (Offline)

    Joined: Mar 06 2012

    Posts: 571

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    Resurrect the inflation and deflation thread

Hi all,

I just discovered this old inflation v. deflation thread.  In hopes of resurrecting it, I'm posting a link to Shane Obata's Inflation v. Deflation here.  It might be good to cross post some other comments on this debate that have been made more recently as well.

One place this conversation came up is in this thread, following Chris' piece on peak cheap oil, but there are many others.

Hugh

  • Sat, Nov 22, 2014 - 08:28pm

    #214
    jw4994

    jw4994

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    Joined: Jan 27 2013

    Posts: 8

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    making pension decisions

I guess I am posting in the right area, although this thread is very old.  My husband is retiring, and now has to choose between options of: (1) "basic benefit" monthly pension that stops when he dies  (2) "surviving spouse options" of varying percentages that continue to pay his surviving wife (me) til I die.  One of these options for choice (2) has equal dollar amounts for the pension after his death, another where the amount drops to half after his death (but the amount is higher while he is alive- but not as high as if he gets the "basic benefit."  And various other percentages.

I got overwhelmed with looking up the Consumer Price Index, and all the controversy about that.  We did the math, based on life expectancies, for total amounts (but inflation makes the grand total sort of meaningless.)  We don't need to collect anything now, but on the other hand, we all know we can't count on the money being there in the future.

I am curious about how some of you made this decision?  We look forward to many more years with good health currently…

 

 

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