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Considering the search for yield thread...

And of course, this is all bad news for unwary investors, since

Those who believe that inflation is only 2%, when it may be 5-8%, may be making investment decisions that are almost guaranteed to erode the purchasing power of their money over time. This is especially true with low-yielding investments such as CDs, Treasuries, etc.

Is The Government Lying To Us About Inflation? Yes!

One's personal inflation depends very much on one's personal habits. Some things have gotten cheaper: Bills for car repair and computer repair are a lot less than they used to be because mean time between failures (MTBF) has grown exponentially as quality improves. Some of my computer related equipment (DSL router and Ethernet hub) are 15 or 20 years old and have never failed. While gas prices are up, miles per gallon has improved and we don't feel the full brunt of rising gas prices unless you are moving up from a compact to a SUV or other kind of truck. By changing to a quasi-vegetarian diet my food costs are down (in the old days I used to eat half a chicken in one meal. Now I might eat half a chicken breast).

Denny Schlesinger
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