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Household Incomes Rise.
Old 09-13-2016, 10:30 AM   #1
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Household Incomes Rise.

The median household’s income in 2015 was $56,500, an increase of 5.2 percent over the previous year, the Census Bureau reported Tuesday.

http://www.nytimes.com/2016/09/14/bu...smtyp=cur&_r=2

Sign of an inflation bump coming?
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Old 09-13-2016, 10:42 AM   #2
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The median household’s income in 2015 was $56,500, an increase of 5.2 percent over the previous year, the Census Bureau reported Tuesday.

http://www.nytimes.com/2016/09/14/bu...smtyp=cur&_r=2

Sign of an inflation bump coming?
Potentially good news, but the detail is important. Typically, what leads to inflation is growth in wages, not household income. They are different in that household income can be the result of more people working and / or more hours worked per household, in addition to higher wages.
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Old 09-14-2016, 08:34 AM   #3
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Potentially good news, but the detail is important. Typically, what leads to inflation is growth in wages, not household income. They are different in that household income can be the result of more people working and / or more hours worked per household, in addition to higher wages.

Good point. Hope it's a bit of both.
Looks like the labor participation rate is finally starting to recover and I notice Aldis is advertising minimum wage plus two bucks vs. plus fifty cents that was advertised a couple years ago.
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Old 09-14-2016, 08:48 AM   #4
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Who benefits from inflation? The downside of too much inflation is well known, but are there things we can do to position ourselves to benefit from a modest increase? I mean, most of us have low/no debt and it's locked in at redonkulous low rates. Take out massive loans now and buy more real estate??
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Old 09-14-2016, 08:56 AM   #5
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Who benefits from inflation? The downside of too much inflation is well known, but are there things we can do to position ourselves to benefit from a modest increase? I mean, most of us have low/no debt and it's locked in at redonkulous low rates. Take out massive loans now and buy more real estate??
Buy things that if dropped would hurt your foot.
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Old 09-14-2016, 09:59 AM   #6
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Living through Nixon- Ford -Carter -Reagan years I probably worry about inflation too much. The pain of the 18% mortgage rates used to squash inflation are still remembered. My fear stems from the fact the next round of decision makers probably didn't live through that and might see the benefits of fixing debt issues by allowing inflation to reducing that problem.
I think I'll stick with a stock heavy AA instead of gold though.
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Old 09-14-2016, 10:33 AM   #7
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It's all in how you spin look at it:

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Old 09-14-2016, 11:19 AM   #8
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It's all in how you spin look at it:
Good point. To quote Paul Mc, it has been a "Long and Winding Road". Looking at the data, though, this is a sign of improvement for lower income workers.

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Who benefits from inflation?
The young, who stand to gain the most as inflation, over time, appreciates their assets and wages.

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Living through Nixon- Ford -Carter -Reagan years I probably worry about inflation too much. The pain of the 18% mortgage rates used to squash inflation are still remembered. My fear stems from the fact the next round of decision makers probably didn't live through that and might see the benefits of fixing debt issues by allowing inflation to reducing that problem.
I think I'll stick with a stock heavy AA instead of gold though.
Many of us here lived through and remember those years. Thankfully, that type of scenario does not seem likely.
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