{"id":57861,"date":"2021-05-15T06:25:21","date_gmt":"2021-05-15T11:25:21","guid":{"rendered":"https:\/\/olduvai.ca\/?p=57861"},"modified":"2021-05-15T06:25:21","modified_gmt":"2021-05-15T11:25:21","slug":"no-inflation-even-used-car-prices-are-soaring","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=57861","title":{"rendered":"No inflation? Even used car prices are soaring"},"content":{"rendered":"
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No inflation? Even used car prices are soaring<\/a><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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We\u2019ve reached a point now where anyone who can\u2019t see inflation is clearly not paying attention.<\/p>\n

Inflation has now become so ridiculous that, according to the Wall Street Journal<\/em><\/a>, even the price of a USED car is increasing\u2026 by a lot.<\/p>\n

Since January 2020, NEW car prices have increased 9.6%. But USED car prices are up<\/a> 16.7% over the same period.<\/p>\n

This is pretty extraordinary given that used cars are supposed to depreciate. According to one used car dealer, \u201cWhat is normally a depreciable asset has been appreciating. It\u2019s certainly surreal<\/strong>. . .\u201d<\/p>\n

It\u2019s not just used cars, of course. Prices across the economy are rising rapidly. NielsenIQ retail price data sets show that consumer goods have been rising in excess of 10% over the last year on everything from beauty products to seafood prices (which have risen by 18.7% over the past three months).<\/p>\n

There are lots of reasons for inflation.<\/p>\n

For example, there\u2019s plenty of pent-up consumer demand from people having been locked down for more than a year, at a time when many businesses are still closed or operating at below normal capacity.<\/p>\n

This combination of high demand and tight supply is causing prices to rise. And in theory that\u2019s a temporary phenomenon.<\/p>\n

But there are other, more permanent factors that could continue pushing prices up for a long time.<\/p>\n

For starters, governments around the world are proposing higher taxes\u2013 carbon taxes, Value-Added Taxes, higher corporate income taxes. This is all inflationary, because eventually these tax costs are passed on to consumers.<\/p>\n

The more important contributor to inflation, though, is astonishing quantity of new money in the financial system, thanks in large part to massive government spending.<\/p>\n

In the US alone, the federal government is trying to pass spending bills totaling $11+ trillion this year.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

No inflation? Even used car prices are soaring We\u2019ve reached a point now where anyone who can\u2019t see inflation is clearly not paying attention. Inflation has now become so ridiculous that, according to the Wall Street Journal, even the price of a USED car is increasing\u2026 by a lot. Since January 2020, NEW car prices […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,426,534,538,7312,7313,3650],"class_list":["post-57861","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-inflation","tag-monetary-policy","tag-money-printing","tag-simon-black","tag-sovereign-man","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=57861"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57861\/revisions"}],"predecessor-version":[{"id":57862,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/57861\/revisions\/57862"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=57861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=57861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=57861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}