Reply to thread

Message

<blockquote data-quote="Trucker Clock" data-source="post: 5400849" data-attributes="member: 70932">Yes, the currency is still inflated. But not at 8%. Most experts target a 2% inflation rate. As inflation goes up, like it is now, the price of goods and services go up, making the currency devalued. When the inflation goes down, the price of goods and services tend to go back down. Now your deflated currency has more buying power. The 82 cent COLA is more than enough to cover the ideal 2% inflation rate, plus some.In the long run, if inflation returns to &quot;normal,&quot; you will come out ahead.Wrong. When the inflation goes back to normal, the 82 cent COLA overcomes the deflation of the currency, plus some.I know exactly how inflation works. The 82 cent COLA does not cover the inflation right now. When inflation drops back to 2 or 3%, that 82 cents more than overcomes the devaluation of the currency, making up for what you are paying more for now.If we did not get a COLA, or a very minimal COLA, yes, it would not keep up with the devalued currency. What we got more than makes up for the devaluation of the currency at the typical 2-3% inflation rate.</blockquote>

[QUOTE="Trucker Clock, post: 5400849, member: 70932"] Yes, the currency is still inflated. But not at 8%. Most experts target a 2% inflation rate. As inflation goes up, like it is now, the price of goods and services go up, making the currency devalued. When the inflation goes down, the price of goods and services tend to go back down. Now your deflated currency has more buying power. The 82 cent COLA is more than enough to cover the ideal 2% inflation rate, plus some. In the long run, if inflation returns to "normal," you will come out ahead. Wrong. When the inflation goes back to normal, the 82 cent COLA overcomes the deflation of the currency, plus some. I know exactly how inflation works. The 82 cent COLA does not cover the inflation right now. When inflation drops back to 2 or 3%, that 82 cents more than overcomes the devaluation of the currency, making up for what you are paying more for now. If we did not get a COLA, or a very minimal COLA, yes, it would not keep up with the devalued currency. What we got more than makes up for the devaluation of the currency at the typical 2-3% inflation rate. [/QUOTE]

Verification