Are we in a inflationary period like the 70s and 80s?

Answer 1

Yes, very similar

oil increasing 3 fold in 6 years, has a domino effect on everything.

+Shipping = +Consumer, Retail prices
+Cost to Produce= +Consumer, Retail prices

think about it
milk, eggs, bread, gas, land, rent, just about everything has gone up more then 50% in 6 years

everything but wages

IMHO, I think the U.S. economy is teatering on a depression scale.

Much like the 1920's and 70's we had this same scenerio. Major Companies/Individuals (oil, finanicial industries/Rockefeller, J.P. Morgan) were hoarding all the money.

The middle class shrank to nothing and we had a large gap between the wealthy and poor. Have you looked who the top companies (market cap) in the world are?

Greed is the downfall of capitalism.
I would much rather be happy then rich.

Answer 2

Inflation is related to price inceases as noted above, but it is actually caused by an increase in money supply. If you want to establish whether or not a country is increasing it's money supply, you need to investigate the figures issued by the government relating to M1, M2 and M3. The important one to see is really the M3 figure as this (in brief) relates to broad money supply and includes factors used in M1 and M2.

If you are in the USA, you will find out quite quickly via any web search that since mid March 2006, the M3 figure is no longer being reported. I have no idea why this decision was made by the Fed, but it is hard to imagine a 'good' reason for it.

Inflation is measured by the CPI (Consumer Price Index) which you may have seen was altered (again) in the US in 2005. There is now a 'core' CPI figure. In other words, the basket of goods used to measure inflation does not relate very closely to real life spending for many individuals or families.

On the other side, the price of commodities often indicate higher inflation. Most noteably gold, silver and platinum - especially gold. If you do a little research, you will find that the price of most commodities has been flying high for 3+ years and increasing for c. 5 years. This may be due to many factors, but partly by the thinking that if paper money is becoming less and less valuable, it makes sense to own 'real' assets rather than the devaluing paper currency.

Answer 3

No. Yes, we are having a temporary spike due to oil, but I was there for the Carter years, and we aren't even close to that kind of inflation. Back then we had double digit inflation, for a few years. I think it was because Carter had the printing presses at the Treasury working over time.

Except for energy, most other sectors are fine.

When you see investments like CDs and bonds go up to 8 or 9 percent, then you should start worrying.

On the other hand, if that happens, do whatever you can to buy into a house, or get another one. Get an adjustable rate mortgage, because in another few years after that, interest rates will fall and you can refinance for the long term. I knew people who bought a house back then, and just a few years later, their pay had risen enough with inflation to make their mortgage payment a drop in the bucket.

Answer 4

no... your question is too broad. Inflation was vastly different during the 70's vs the 80's. In general, we have been in a lower inflationary environment during the past decade.

Answer 5

No. Then oil had a strong effect on inflation. Now, much less so per given barrel of crude. Inflation is on the rise, but is well contained. All bets are off if there is some significant worldwide event. But for now, it's smooth sailing.

Answer 6

real state is not and never wiill be