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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (85403)	1/1/2012 8:37:39 AM
From: KyrosL	1 Recommendation Read Replies (3) \| Respond to of 218031

...over the past 20 years ... i think 8-12% per annum is a fairer description, Let's see what your low end estimate of 8% inflation, which is actually a bit above shadowstats, implies, and then compare to actual prices of some items in 1992 vs 2012 in the US. Cumulative inflation from 1992 to 2012, assuming 8% annual: 466%. i.e. an item that cost $1 in 1992 costs $4.66 in 2012. Here are typical prices in 1992 (see 1990sflashback.com ): Cost of an average new home: $144,100.00 Cost of first-class stamp: $0.29 Cost of gallon of regular gas: $1.13 Cost of a dozen eggs: $0.93 Cost of a gallon of milk: $2.78 Here are what would be the corresponding prices in 2012 assuming your minimum 8% annual inflation rate: Cost of an average new home: $ 671,500 Cost of first-class stamp: $1.35 Cost of gallon of regular gas: $5.27 Cost of a dozen eggs: $4.33 Cost of a gallon of milk: $12.95 And here are actual prices in 2012 (end of 2011 mostly taken from thepeoplehistory.com ): Cost of an average new home: $205,000 (not adjusted for the fact that avg home is bigger than 1992) Cost of first-class stamp: $0.44 Cost of gallon of regular gas: $3.45 Cost of a dozen eggs: $1.35 Cost of a gallon of milk: $3.39 Your inflation rate produces prices that are greater than actual prices by a factor of between 2 and 5.