Rule of 72 applied to "inflation"

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Big Eyed Bug
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The Rule of 72:

72 / interest rate = number of years to double money.

Right now, at CPI 7% the price of goods will double in about 10 years. Of course, thus actually means that the value of the FRN will be cut in half in 10 years (assuming a constant CPI of 7%... and assuming the CPI is an honest measure of inflation).

How many of you expect your salary to more than double in the next 10 years?
 
... that is if you can believe the CPI is 'correct'....
 
Lots of grocery items in my area have already doubled over the last year or so. Whether these prices are sticky or come down after supply chain and fuel/fertilizer cost disruptions get alleviated remains to be seen.
 
Oddly, I expected gas at the pump price to go up after the midterms, but they've actually gone down a bit here.

Maverik is $2.54 reg

If that continues it will help reduce inflation... somewhat.
 
Goldhedge said:
Oddly, I expected gas at the pump price to go up after the midterms, but they've actually gone down a bit here. ...
Click to expand...

Discussion belongs in Politics forum, but at a high level, OPEC was not trying to help current POTUS administration.
 
pmbug said:
Discussion belongs in Politics forum, but at a high level, OPEC was not trying to help current POTUS administration.
Click to expand...
pols are one of the biggest drivers of this historic surge in inflation. hard to discuss/predict without including them
 
Goldhedge said:
Oddly, I expected gas at the pump price to go up after the midterms, but they've actually gone down a bit here.

Maverik is $2.54 reg

If that continues it will help reduce inflation... somewhat.
Click to expand...
like everything else that they trade - transactionalists often do things that separate price from discovery and/or fundamentals. oil and it's derivs are in that sphere
 
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