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  • Re: true inflation appears to be 2x official inflation

    From Lawrence D?Oliveiro@3:633/10 to All on Thursday, December 18, 2025 20:28:38
    If it only ?appears?, then it can?t be ?true?, can it?

    --- PyGate Linux v1.5.2
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)
  • From Gordon@3:633/10 to All on Thursday, December 18, 2025 23:04:21
    On 2025-12-18, Willy Nilly <wn@nosuch.com> wrote:
    Silver coinage gives us a measuring stick against which to compare
    official inflation. Over the 80-year period 1946-2025, official
    inflation is 55.2x, that is, what cost 10› (i.e., a shilling) in 1946,
    today costs $5.52.

    1946 was the last year of true silver coinage in NZ, the 1946 shilling
    holds 1/11th of an oz troy silver, which is now worth $10 on the
    silver spot market. So the 10› coin of 1946 is now worth $10, a clean
    100x increase in face value, thus the 1946 shilling bought the same
    groceries as $10 buys today. This makes an easy basis of comparison,
    if you know the 1946 prices.

    Your basket needs to have more goods in it. The CPI is a basket of goods
    that the average person buys. It is the increase cost of the whole basket
    which governs the inflation (rate).

    In the case above it has been shown that the price of silver has inflated
    twice that of the general inflation.

    Take the price of natural gas, it will go up faster than the CPI beacuse NZ
    is about to run out of gas.

    https://www.rnz.co.nz/news/national/582138/households-ponder-future-of-gas-as-supply-dwindles

    --- PyGate Linux v1.5.2
    * Origin: Dragon's Lair, PyGate NNTP<>Fido Gate (3:633/10)