Random Thoughts on Inflation
Random thoughts this week.
Do the costs for everything just go up because of inflation? However inflation seems to hit some things more significantly than others. Think of the price of cars?
When I was growing up cars cost between $10,000 to $20,000 - now just look at them.
Milk on the other hand seems to have stayed somewhat the same. I mean I realize that its gone up - but not that much. Not like the price of new cars. Most Tesla vehicles, at least the ones they are truly building as of right now, are north of $100,000.
Term Life Insurance though, is one thing that does not seem to be more expensive. The costs for term life insurance just keep seeming to go down. Take a typical $1 Million Dollar Term Life Policy, the costs for these things just seem to keep going down.
Why is this? Why do some costs go up while others go down? What forces are at work to create such different inflation costs. Each quarter we all anxiously await the fed to determine what is going on with the federal funds rate which to a limited extent helps to cajole the inflation rate.
The fed wants inflation rates to go up, just a bit each year. They completely fear it going down and they completely fear it going up too fast. Let me put this a different way - the federal reserve wants the things that you buy to cost more and more each and every year.
Is that what you want? Is that in your best interest?
Do the costs for everything just go up because of inflation? However inflation seems to hit some things more significantly than others. Think of the price of cars?
When I was growing up cars cost between $10,000 to $20,000 - now just look at them.
Milk on the other hand seems to have stayed somewhat the same. I mean I realize that its gone up - but not that much. Not like the price of new cars. Most Tesla vehicles, at least the ones they are truly building as of right now, are north of $100,000.
Term Life Insurance though, is one thing that does not seem to be more expensive. The costs for term life insurance just keep seeming to go down. Take a typical $1 Million Dollar Term Life Policy, the costs for these things just seem to keep going down.
Why is this? Why do some costs go up while others go down? What forces are at work to create such different inflation costs. Each quarter we all anxiously await the fed to determine what is going on with the federal funds rate which to a limited extent helps to cajole the inflation rate.
The fed wants inflation rates to go up, just a bit each year. They completely fear it going down and they completely fear it going up too fast. Let me put this a different way - the federal reserve wants the things that you buy to cost more and more each and every year.
Is that what you want? Is that in your best interest?
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