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Which sector of economy will be hit first ??

Discussions about the economic and financial ramifications of PEAK OIL

Re: Which sector of economy will be hit first ??

Unread postby Outcast_Searcher » Sun 06 May 2018, 14:05:30

evilgenius wrote:
onlooker wrote:Evil, can I ask you what you believe will be the prime catalyst to initiate the next Great downturn in the Economy?

I think the prime catalyst will be interest rates. The move upward is a a move to halt inflation, which has been low. I know, you can always find somebody who has a lot to say about how they are paying more for everything. About a year or two ago I started to actually watch what was happening at the grocery store. I didn't write things down, but I deliberately kept a lookout, to see how much things were actually going up. Prices went up some, but not as much as the ranting.

It doesn't take a rocket science to see that the inflation rate claimed on shadowstats is nonsense, to cite an example of "sophisticated" ranting.

People tend to notice prices going up a lot, which bothers them. (College and medical care as two prime examples). But they forget or heavily discount that all electronics are tending to plunge in price (when functionality is considered) over time, for example.

Or cars. My 2017 Camry cost almost exactly what my 2003 Altima cost new -- including inflation. The Camry is much better equipped, although almost everything is standard, where stuff like ABS and the extra airbag package were expensive options in 2003. So I'd say for the midsized car buyer, considering functionality, prices after inflation have come down.

Not that I LIKE my medical insurance at just about triple where it was a decade ago, and being by far my biggest expense aside from taxes. But I do very much appreciate overall 2%ish inflation, remembering 1981 when, literally, I noticed grocery prices rising EVERY time I went to the store (inflation around 15% at the time) -- having just gotten my first post college job, THAT was scary.
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Re: Which sector of economy will be hit first ??

Unread postby onlooker » Sun 06 May 2018, 14:38:36

http://www.pewsocialtrends.org/2016/05/ ... tan-areas/
America’s Shrinking Middle Class: A Close Look at Changes Within Metropolitan Areas
"We are mortal beings doomed to die
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