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Inflation starting to spiral out of control?

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(@buffscotsman)
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Have any of you noticed that inflation seems to be becoming noticeable on a month to month basis? When inflation is at 2% per year you don't really notice it. Only when you look back statistically do you say ouch things are a fair amount more expensive nowadays compared with say 10 years back. (Yet most workers make the same or less per hour worked).

I've been watching cereal boxes for years have managed to stay under 5$ a box. It impressed me how long they stayed down while other things were moving up. But just in the last month they broke through the 5$ barrier, and now many are near 6$ like 5.88$ a box. I went to buy cheese and nearly choked when I turned them over to see the price tag.

My landlord is agitating for dramatic rent increases each year, but can't raise it more then the official rate of inflation on existing tenants because of rent control laws. So they are trying to kick people out who are long term tenants. I notice the new renters are almost always two to three per 1 bedroom suite.. compared to 5 years ago it was mainly 1 renter per 1 bdrm.

Well I make enough money and live below my means, so for me its not the end of the world. But I thought for people closer to the edge it has to be affecting them.

I think everything in this world works on an exponential basis. So when rabbits came to Australia at first a few escaped. Then people would sight the odd rabbit in different places. At some point when the knee of the exponential curve is hit, soon it seems like rabbits are everywhere.

Btw I look at economic crisis like this. If things stay as they are now, its kewl with me, life is pretty good. The problems we talk about are often the trends moving against us. On the other hand if we get into a Weimar German like inflation death spiral.. we will be able to recruit hundreds of thousands or millions to our movement. Just as the Nazis did. When people can afford their suburban homes, put lots of food on the table and get the occasional break they aren't going to support revolution and I can't blame them.


 
Posted : 17/05/2007 8:11 pm
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