A Number Game

MOST of these days garmen's statistics agencies are publishing INFLATION running ABOVE or at the high end of their inflation target. YET, most of them don't care, at least their actions tell me that they don't care and they expect inflation to come down. ECB noted high inflation, but printed additional 500BILLION pieces of paper. Benny KNEW that US is running high inflation but give priority to growth and CUT rate and PRINT more $$. BOE also CUT.

The Question is WHY are these CLEVER people so CERTAIN that inflation WILL come down? It is a number game. Let me give you an example. IF an egg cost 50cents last year and $1 this year, that is a 100% inflation. IF next year it stays at $1, the inflation is ZERO, 0%. They will bring everyone's attention to the fact that INFLATION has STOPPED and no longer a problem. BUT, is it? Just taking a simple average, over the 2 yrs, inflation would have gone up 50% per annum. The expectation of inflation may moderate or so called no longer an issue, but the REAL REAL inflation HAD already happened. We have to pay 50cents more for every single egg that we consumed while wages and interest from bank deposits simply won't cover the rise of 50% per annum inflation. Even if the price of egg held steady for the next 10 years, that is still a 10% inflation per year. So, what's up with the so called future inflation. Unless you tell me that your wages go up 10% per annum, then no issue to you. But, please tell me what kind of work you do hor. hehehehe.... most likely u have to be a L&S (Leeches & Sexes) to get that kind of above inflation increment in wages.

But, then again, CLEVER people look forward and completely forget about the past. And as always STUPID people like me will peep back and see where we came from even after 10 years!