mybudget360.com / by mybudget360 / November 30, 2012
For most people that I know the mortgage and rent payment will eat up the largest portion of a monthly budget. This is the case for the vast majority of Americans as well. Housing is the biggest line item expense on the monthly budget. For the most part people tend to think that the Federal Reserve is fully focused on home owners but the reality is this is only an afterthought. The core focus of the Fed is to inflate the debt of the banks (massive amount) and the government away ($16 trillion and growing). Even a tiny bit of inflation is painful if household incomes are not going up. Household incomes adjusting for inflation are back to levels last seen in the mid-1990s. With the push for lower rates, rents have been going up consuming a larger part of a household’s budget. Even if overall inflation looks stable the big jumps in rents, health care costs, tuition, and food are hitting households very hard.
I’m not sure where people get the notion that we are not experiencing any inflation. According to the MIT inflation data and CPI, we’ve been seeing general price rises since the brief dip in 2009: