The insane ideology posing as “economics” among our ruling class never ceases to amaze me. Here it is in a Bloomberg story:
Five years into the U.S. economic expansion, inflation shows little sign of picking up as prices rise more slowly for goods and services from automobiles to medical care, complicating the Federal Reserve’s drive to guide the economy away from the precipice of deflation.
The personal consumption expenditures price index, minus food and energy costs, rose 1.2 percent in 2013, matching 2009 as the smallest gain since 1955. Of 27 categories of goods and services in the gauge, 18 showed smaller price increases over the past two years, according to data compiled by Bloomberg.
The slowdown has been broad-based, with durable goods such as autos, nondurables like clothing and services including health care all playing a role. Fed policy makers are on guard to keep such disinflation from morphing into outright deflation, a persistent drop in prices that prompts households to delay purchases in anticipation of even lower costs and leads companies to postpone investment and hiring.
“There’s a lack of pricing power in most areas of the economy,” said Laura Rosner, an economist at BNP Paribas SA in New York and a former researcher at the New York Fed. “In certain months we see weakness in medical care, and then that passes on to apparel prices in other months. It’s a weakness that never quite fades.”
It is surprising how easily I can find a news story that expects readers to get complete amnesia about everything that has been going on in the world in order to accept the premise of the story. I am old enough to remember back when people were saying that medical costs were skyrocketing far too much. Is it really a dire threat that people contemplating having a baby are not going to have to drain their income as much for clothes?
The price of computers and internet devices is going down all the time. Yet you and I don’t “delay purchases in anticipation of even lower costs” and lead “companies to postpone investment and hiring.” If Bloomberg’s junk economics were true then I could never have typed this out on my laptop and you wouldn’t be using a device to read these words right now.
What drives me crazy is that many of you don’t believe me. I’m not an economist. How can I be right and the writers at Bloomberg be full of garbage? (Yes, still trying to be a family-friendly blog here.) Alan Greenspan spoke in such gibberish that he must have been saying something really intelligent. And Ben Bernanke was so calm and poised in those expensive suits. Janet Yellen is supposed to be really smart. How can all these people be worthless fraudsters? That would be like doubting the diversity of the Supreme Court because every single one of them has an education from one of a handful of Ivy League schools out of thousands of possible educational institutions.
Let me ask you a question: Does Walmart know how to make money?
So when they run their “rollback campaign,” do they expect it to attract shoppers into their stores to spend money on what they are selling?
How do the advertisers for Walmart expect viewers to respond to this ad? Do they expect them to say, “Wow, we should wait awhile because we can save more money if we buy what we need later”? Or do they expect them to want to go to the store and buy stuff now because it is so cheap?
The glitter of the economic establishment should not cause you to doubt what you know is true!
These glitterati are torturers. They talk all the time about the problem of “income inequality,” and, at the same time, openly admit that they want prices to always be rising further and further out of reach. They want everything you eat and drink and use and enjoy to be less affordable for you next year. The central bank has promised that if the prices of goods and services don’t start rising further and faster, they will take steps to “correct” the “problem.”
These people hate you and want to cause you pain every day.
And no wonder they hate Walmart.