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Can prices really rise when the government says inflation is negative?

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posted on Jan, 31 2010 @ 03:59 PM
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I have noticed that prices on apartments are going back up again and food prices as well. I know electricity costs more since sept 2009. If the government says inflation is negative can prices still rise? I am so confused and still looking for answers to this one. Are prices going to fall in 2010 and 2011? The government says that there is no cola for social security because inflation is negative.
What happens when my rent goes up to $700 and I look all over yet all the prices for one bedrooms are comparable? I talked to several apartments because my rent will be going up to market rate which is now at $700-$800 per month. Those are flordia prices not missouri! All of the apartment leasers say in June prices could be much higher? Can this really be? If my rent goes up over $620 I will have to move.
What will happen when all over the USA people's incomes are less than rent? How are we supposed to afford housing?
What about food; can goods are $1 each for the cheapest brand? I feel the government is doing a bait and switch. They are getting use to look one way while they deviously do something else.
They tell us prices are dropping and some people believe it. There has to be some consircy theory to cover this. Is this another way to reduce population? Does the government not care?
www.four-pillars.ca...
Look at this web site to see how people are suffereing. Food banks run out of food. Programs are exhausted and waiting lists for housing or assitance are frozen.
Is the new USA?



posted on Jan, 31 2010 @ 04:05 PM
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I've followed the inflation v. deflation debate for over a year.

The best explantion I've read is simple.

"Wants" will deflate and
"Needs" will inflate.

No question the Fed is printing money and the dollar is dropping.

The number of dollars for an ounce of gold is going up.
Notice I didn't say gold itself. Gold is the standard.

Hope this helps



posted on Jan, 31 2010 @ 04:12 PM
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I know I have cut out many wants and I know I can't get rid of things I need. I can't cut anything else because everything I pay for now are my basic needs and school costs. I take online courses and I must have internet acess.
The economy is never going to recover if people stop buying things. Many people have cut out cable, home phones or cell phones depends on which one they need the most. Many people go out to eat less, do not buy new clothes or get credit cards anymore.
Our country was built around debt and money now when there is less of it; things cost more what will become of this country with less jobs and higher prices?



posted on Feb, 2 2010 @ 04:50 PM
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There are two possible explanations for this, which are not mutually exclusive.

#1. The government is not being truthful

#2. Inflation statistics are skewed

Inflation statistics are compiled by measuring price changes in a broad range of goods and services. Many goods, like the goods people like you buy, are going up in price. The price of many goods, many of which people like you do not buy, are going down in price. You have noticed the prices of items like a gallon of milk or your rent have gone up. The prices for items like vacations, luxury cars, and stocks have gone down.

Therefore, it is possible for the government to report that there is little or no inflation when in fact many people are experiencing an inflationary pinch. There are many people like you who are seeing a rise in price for the goods and services they buy, while not enjoying the drop in prices that others may be enjoying.



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