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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Haim R. Branisteanu who wrote (63309)2/3/2007 2:33:14 PM
From: bart13   of 116555
 

Thank y very much the graphs are fascinating in the sense that they reflect what I was suspecting. Real wages are the same if not actual down - depending which CPI you consider.


You're most welcome Haim. Those charts and many others are on my long term inflation page on my site. It truly was very illuminating for me to see how much larger of an effect inflation has been over the decades, even when any lies aren't taken into account. The overall standard of living picture that many have is just plain way too optimistic in my opinion, thanks to folk in DC, at the Fed, etc. etc.

Your point about the Dow is well taken and it has come up enough times before to prompt me to do a similar chart on the S&P 500 and place it on my long term inflation page.



As you can see, its not terribly different from the Dow picture and if anything its a bit worse. For anyone who doubts the numbers, just look up the actual CPI-U values - CPI inflation has been over 500% since 1970.

Here's the same picture, except with gold.



For an even more complete picture, this is one of my favorite charts and helps put things in a broad perspective.

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