Let's talk some econ/finance ****

[KrazyHorse]

If you really want to tear into the Republicans for their role in prolonging this mediocre "recovery", focus on things like this: http://www.bloomberg.com/news/2011-0...elby-says.html

[KrazyHorse]

I really don't give a **** about bogus inflation numbers that are cooked for the evening news.

You're a moron.

[notyoueither]

You are a moron if you believe inflation numbers mean jack-****.

[KrazyHorse]

Sorry, given that you don't even understand basic concepts like tax incidence, I think I'll take the careful computation according to a well-understood, reasonable methodology over your idiotic ramblings.

[KrazyHorse]

Krazy Horse

If you lived in a third world country with 25% annual inflation, how would you do to save money?

You can't put the money into a bank because you only get 9% per year

You can't buy dollars because the native currency is barely devaluating

What most people do is invest the money in properties (houses, apartments) so that they can get a rent, and peg the rent to the inflation rate to avoid losing money

While it is possible to have sustained -16% real rates, and possible that you've found some kind of blatant exception to the Fisher hypothesis, I'll merely suggest that the situation you describe is unlikely (in the absence of draconian monetary and interest rate controls).

I also don't have any idea why you think that comparing a country with 25% sustained inflation is meaningful when talking about a country that has had stable 2-2.5% core inflation for 25 years, but has recently dropped to 0-1% core inflation.

[C0ckney]

presumably he's talking about argentina...and asking for actual advice on how to save.

[Barnabas]

Exactly

here we have had 20% inflation per year since 2005, and the currency has not devaluated much. In the last two years only from 3.8 pesos per dollar to 4.05 pesos per dollar.

You lose money if you put it in the bank, and buying another currency is worthless since the peso is not devaluating (I guess the gov fears that letting the currency devaluate to recover the competitivity they lose by getting 20% more expensive every year would let the inflation out of control)

By the way, don't look for official statistics because the official statistics are fake.

Nowadays people with money are investing everything in properties, and that makes it hard for regular people to buy a house. People are only saving in stuff that can be pegged to the inflation rate.

[KrazyHorse]

Barnabas: are there exchange rate controls in place?