Earlier quoted context omitted.
If eggs were about inflation, why did the price drop back down?
Eggs are still up 200% per dozen near me.
I seem to remember “inflation is transitory”, but no, eggs aren’t up. Your dollar is down.
US Wholesale Inflation Rises by Most in 3 Years
411–412 of 412 posts
Re: US Wholesale Inflation Rises by Most in 3 Years
#412Earlier quoted context omitted.
> but really the average was quite stable from 1982 to 2004 It was falling at a stable pace for 20 years in nominal terms. I don’t see how can someone see anything else looking at the price chart. And inflation was still 4-5% through the 80s and didn’t fall to 2% until 2000. So it was a horrible asset to hold. Just buying government bonds in the 80s and 90s was a much better idea.
> It was falling at a stable pace for 20 years in nominal terms. It was not. Look at the chart: https://www.macrotrends.net/1333/historical-gold-prices-100-... Between 1984 and 1996, 131 of the 156 months were within $50 of the average nominal price, and the lowest point, December 1984, was only $89 below the average. In particular from 1993 to 1996 the price was never more than $10 off average. If you bought gold in…
> The question is can the value of gold be used as a proxy for inflation
So it can’t unless you stretch the period out so such an extent that there basically just 1-2 data points left?
Or are you claiming that prices and money supply between ~1980 and 2000 increasing by more than 2x?
Because otherwise it’s an extremely lagging indicator. More like what’s left after the fire than early smoke.