Real estate prices are adjusting downward after a record bull market. Inflation just makes the correction worse, since wherever prices end up in nominal terms, they’ll be even lower in real terms…
July 1st, 2008 | Bill Bonner | 3 comments | ContinuedAll Posts Tagged With: "price inflation"
Investors Fear Rising Inflation
Worldwide inflation is about 7%, says Bill Gross of PIMCO. And since price inflation has now been globalized, there is no escaping. Here in Britain, consumer price inflation, officially, is running at its highest rate in 10 years.
June 19th, 2008 | Bill Bonner | 2 comments | Continued
What’s Driving The Mogambo Crazy This Week: Price Inflation, Food Prices, Etc
Then, finally, we get to how to magically reduce inflation with “product substitution” in the consumer’s shopping basket (”if flank steak gets too expensive, people are assumed to shift to hamburger, but nobody is assumed to move up to filet mignon”), continuing with the lunacy of the inflation-reducing scam of “geometric weighting” of the items still in the shopping basket…
May 6th, 2008 | Mogambo Guru | 1 comment | Continued