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No. of Recommendations: 3
I'm very much an investing beginner and I've been soaking up this board quite well.

However, I've got a question about a widespread perception on these boards: that th government inflation numbers are well beyond what they state; well into the double digits instead of the standard ~3%.

A lot of the evidence for this is quite convincing and quite scary. And certainly many of us are feeling the effect of increased gas and food prices...

My question is: if the true inflation rate, as extrapolated from missing M3 numbers, is well into the double digits, why isn't this being reflected in loan interest rates? True, low interest rate loans are harder to get than they were 2 years ago, but they still exist. Mortgages and cars, in particular, have been holding well below 10%.

I assume that banks are not as little-f foolish as to loan out money at a rate that makes it worth significantly less over time. What's going on?
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