Why isn't there more visible (reported) inflation as the worlds Central Banks continue to print money as needed. Rents and food seem to be going up?

Asked by Richard Paille, Santa Rosa, CA Wed Aug 1, 2012

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5
Mack McCoy, Agent, Seattle, WA
Mon Aug 6, 2012
Maybe it depends on what we're looking for. Without the printing, could there have been - deflation - instead?
1 vote
John Arendsen, Agent, Leucadia, CA
Mon Aug 6, 2012
Wow!! I'm really confused Where's the double didget inflation ? We haven't even seen deflation yet Is that not a pre cursor to double didgit inflation? Or did I miss Econ101?
1 vote
John Arendsen, Agent, Leucadia, CA
Mon Aug 6, 2012
MACK! Where the Hell you been? I missed you on my last trip to Seatle? Great to hear you chiming in on all this academic gobligook!!
0 votes
I know, I had some distractions and would have loved to have met you in person. I suppose I'm going to have to come Down South sometime, won't I!
Flag Wed Aug 8, 2012
Michael Cheng, Agent, San Jose, CA
Mon Aug 6, 2012
There are two obvious reasons that I can see.

First, the inflation measures are imperfect and prone to political influence. So, with the first world countries already struggling with slow growth and massive entitlement programs, the easiest way to keep the high levels of debt and deficit from spiraling out of control is to under report core inflation. Thus, you can avoid cost of living adjustments on pension and social security programs.

Second, the first world countries have effectively exported our inflation overseas while we continue to run trade imbalances to import from emerging countries. If you look at inflation measures in emerging countries, you'd see exactly what you'd expect from all the money creation by central banks. Even with those countries trying to manage the inflation figures, you're still routinely seeing double-digit inflation.

Beyond that, there are a ton of factors that are not as obvious to me.
Web Reference:  http://www.archershomes.com
0 votes
John Arendsen, Agent, Leucadia, CA
Sun Aug 5, 2012
Simply put we're in a period of stagflation. With interest rates as low as they are, unemployment where it is and the world economy as messed up as it is we probably won't see inflation before we some deflation as people will really be cutting down on purchasing which is the driver of inflation. Just my humble opinion.
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