Wheres the inflation?

[LargoWinch]

Re: Wheres the inflation?

I've gone from living alone to having as many as 3 relatives living with me at various times this last year. Now 2 of those 3 have moved out ... to live with other relatives.

That's one upside of the housing boom of the last two decades. Americans are occupying more square feet per person than they need to. There is quite a bit of opportunity to pack ourselves in tighter.

Wait a sec. here TPC... you mean in the trailer?

[LargoWinch]

Re: Wheres the inflation?

Sorry EJ, but am losing a bit faith here mate.............i expect to see "Signs"...by Now you know + $100 oil + $1300 Gold........
Mike

What is with all that crazy "no inflation" / "where is my inflation EJ?" nonsense on iTulip lately?



Ok, let me give you all an example - there are many - but this one is documented, personal and can be posted/proven for all to see:

Less than 2 years ago we put our son on a daycare list: price $1,515 / Month

Last week, we finally got a spot: $1,730 / Month ... at the same exact daycare

...

Viva la deflation j'imagine.

[mliu_01]

Re: Wheres the inflation?

Where is inflation? Ask chinese.

We exported most inflation to them. Price went up 3 to 5 times than 5 years ago. Now their exporting is almost dead. Just wait for them to come here and buy the crap out of this country. Then you will ask where is the deflation.

[ThePythonicCow]

Re: Wheres the inflation?

Wait a sec. here TPC... you mean in the trailer?

Yup - sure enough.

One problem I don't have, is people overstaying their welcome. They move on as soon as they're able to .

That's one of the advantages of not living in a big fine house with a spare bed and bath.

[shiny!]

Re: Wheres the inflation?

My favorite Basmati Rice used to come in 20 pound sacks. Now it comes in 15 pound sacks.

I noticed that, too.

The mobile home's on all three sides of me have had their renters evicted over the last year for lack of paying rent.

The enticements to attact new renters at the three apartment buildings down the street have been getting increasingly aggressive.

Those special move-in deals almost always backfire on the landlord. Offering people free rent for a period if they move in means they move out once they have to start paying. And they usually trash the home while they're there or on their way out.

The mobile home part worries me the most. What would happen if the owners of my mobile home park were foreclosed on? I keep an eye on the other parks in the area, and keep money aside to pay for a quick move of my trailer if need be, but it would be a serious pain in the backside. On the other hand, I can't imagine they'd dump 200 mobile homes out "onto the streets" of my fine town.. That would be a real mess.

If you haven't done so already, do some research on the Landlord/Tenant Act for Mobile Homes in your state. You might have some legal entitlement to compensation or relocation assistance if your MH park raises rent too much or goes out of business. Here's an excerpt from the Arizona Landlord/Tenant Act for Mobile Homes:

33-1476.01. Change in use; notices; compensation for moving expenses; payments by the landlord
A. The landlord shall notify the director and all tenants in writing of a change in use at least one hundred eighty days before the change in use. The landlord may not increase rent within ninety days before giving notice of a change in use.
B. The landlord shall inform all tenants in writing about the mobile home relocation fund established in section 33-1476.02.
C. If a tenant is required to move due to a change in use or redevelopment of the mobile home park, the tenant may do any of the following:
1. Collect payment from the mobile home relocation fund for the lesser of the actual moving expenses of relocating the mobile home to a new location that is within a fifty mile radius of the vacated mobile home park or five thousand dollars for a single section mobile home or ten thousand dollars for a multisection mobile home. Moving expenses include the cost of taking down, moving and setting up the mobile home in the new location.

In this economy, mobile home parks with low, competitive rental rates are making money better than any other type of housing. A year ago, the company I work for had a hard time getting one of their parks refinanced. Now it's time to refinance another park and the banks are falling all over themselves to do it. Hopefully your park will do OK.

[blazespinnaker]

Re: Wheres the inflation?

Deflation and inflation are really about money supply, but are discussed as if they mean lower and higher prices, which is the effect of deflation and inflation. So by that definition...

NO. Money supply is about money supply.

Deflation according to websters is:

Deflation definition

"A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression."

When THE VAST MAJORITY talks about deflation they mean a general decline in prices.


http://dictionary.reference.com/browse/deflation

If you want to talk about money, go ahead, talk about it. But don't start redefining words.

[ThePythonicCow]

Re: Wheres the inflation?

If you haven't done so already, do some research on the Landlord/Tenant Act for Mobile Homes in your state. You might have some legal entitlement to compensation or relocation assistance if your MH park raises rent too much or goes out of business. Here's an excerpt from the Arizona Landlord/Tenant Act for Mobile Homes:

Cool! Thanks for the suggestion. In Texas, start the search with "property code manufactured home tenancies texas". I'm reading the rest of it now. Indeed, they have to provide 6 months notice for a "change in land use." I don't see any required payments to cover the move, but that's ok for my situation anyway (though some of my neighbors living closer to the edge would be hurting, big time.)

In this economy, mobile home parks with low, competitive rental rates are making money better than any other type of housing. A year ago, the company I work for had a hard time getting one of their parks refinanced. Now it's time to refinance another park and the banks are falling all over themselves to do it. Hopefully your park will do OK.

I'd have thought that might be the case, but had not seen evidence of it in the park I live in yet. Vacant lots and "For Sale" signs seem to be about the same, maybe a little worse, as they were when I moved here a couple years ago. This may be because the housing market in North Texas and around where I live held up longer than most markets in the U.S. Only in recent months has the market really slowed and the overhang started to build up seriously (based on my brief causal checks; I am no reliable source on this.) Prices still haven't changed much; they never got very high in the first place. I found a home nearby for sale two years ago that was a little bigger, nicer and newer than the one I sold in California three years ago. The California price: $650K (Zillow.com appraisal peaked over $800K.) The Texas price: $125K.

[shiny!]

Re: Wheres the inflation?

NO. Money supply is about money supply.

Deflation according to websters is:

Deflation definition

"A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression."

When THE VAST MAJORITY talks about deflation they mean a general decline in prices.


http://dictionary.reference.com/browse/deflation

If you want to talk about money, go ahead, talk about it. But don't start redefining words.

I am not aware that I am redefining words. My understanding of the terms is that a deflation of the money supply (what Webster's calls a "reduction") will usually cause a deflation in prices, while an inflation of the money supply can cause inflation of prices. Except that we aren't necessarily seeing such a predictable cause and effect right now.

You can have a deflation of the money supply and still see an increase in the prices of certain things if they are relatively scarce and in demand. But that rise in prices does not necessarily mean that inflation is happening. It just means the prices are going up.

If I am wrong, I humbly apologize and ask for the forum's forgiveness. But FWIW, I have never cared a whit what the VAST MAJORITY say about anything, because the VAST MAJORITY is frequently as stupid as a sack of potatoes (which have been going down in price).

[ThePythonicCow]

Re: Wheres the inflation?

Deflation according to websters is:

Deflation definition

"A general decline in prices,

It is common for words to have various meanings, not always reflected in your dictionary.

For example, my Websters (the Third New International Unabridged) defines deflation as:

a contraction in the volume of available money or credit resulting in a decline of the general price level

Milton Friedman, if I recall correctly, defines inflation and deflation as increases or decreases in the supply of money.

Some might consider Mr. Friedman as at least a good economist as Mr. Webster and his descendants.

In general, I recommend some tolerance for various meanings others might have for words. If one cannot figure out what meaning they intend, ask. If one can figure it out, but one has some problem with that meaning, accept and acknowledge that they are using such a meaning, and then state your reasons why some other meaning would be preferred.

The meanings of words in common discourse are not rigidly defined by any particular set of rules or any particular dictionary.

[LargoWinch]

Re: Wheres the inflation?

Yup - sure enough.

One problem I don't have, is people overstaying their welcome. They move on as soon as they're able to .

That's one of the advantages of not living in a big fine house with a spare bed and bath.

Ah! The in-laws repellent! I like it.

[blazespinnaker]

Re: Wheres the inflation?

I disagree with this .. There is a segment of the population that has redefined the word inflation in order to push their particular beliefs about the money supply and how it should be managed.

It is very insidious because they are just defining their arguments.

It is especially insidious because it denies the possibilities of innovation and it's impact on inflation.

It is common for words to have various meanings, not always reflected in your dictionary.

For example, my Websters (the Third New International Unabridged) defines deflation as:
Milton Friedman, if I recall correctly, defines inflation and deflation as increases or decreases in the supply of money.

Some might consider Mr. Friedman as at least a good economist as Mr. Webster and his descendants.

In general, I recommend some tolerance for various meanings others might have for words. If one cannot figure out what meaning they intend, ask. If one can figure it out, but one has some problem with that meaning, accept and acknowledge that they are using such a meaning, and then state your reasons why some other meaning would be preferred.

The meanings of words in common discourse are not rigidly defined by any particular set of rules or any particular dictionary.

[bart]

Re: Wheres the inflation?

The full Friedman quote:


"Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output."
-- Milton Friedman

[lsa420]

Re: Wheres the inflation?

Not allowed excess there.
Mike

I am so disappointed that you aren't a subscriber.....

[ThePythonicCow]

Re: Wheres the inflation?

I disagree with this .. There is a segment of the population that has redefined the word inflation in order to push their particular beliefs about the money supply and how it should be managed.

It is very insidious because they are just defining their arguments.

It is especially insidious because it denies the possibilities of innovation and it's impact on inflation.

I agree that sometimes people abuse terms in order to push some hidden agenda. Even then, I doubt quoting ones dictionary as gospel serves any purpose. Rather if I thought the misuse was deliberate, I'd call them out on the abuse of terms, clarifying the agenda I thought the misuse promoted and denouncing that agenda.

In this case, I doubt shiny!'s abuse was deliberate. I for one doubt it was even an abuse. In such cases, one can explain one's concerns in a more sympathetic manner.

In other words, to cut short my Miss Manners lecture and cut to the chase:

Could you describe what segment of the population has redefined the word inflation, how they have redefined it, and what beliefs they are pushing?

[mmr]

Re: Wheres the inflation?

That assumes that the US government will allow China to buy anything of value directly. If Congress blocked CNOOC from buying Unocal a few years back when the economy was decent, I really doubt that a Chinese company will be allowed to buy any valuable assets now that we're in a depression.

Of course, that also assumes that there's anything left in the US worth buying.

I imagine that China will continue to transfer the dollars to any commodity exporters who will take them, and we'll get our inflation through higher oil and commodity prices (or a collapsing exchange rate) - they might as well get some real value for their dollars while they can.