Is two percent Inflation is Fantasy Land?

[Kelley1]

Every year, no matter how bad inflation was the prior year, the bond market is just assuming that it’s going to be 2% for the next 30 years. At some point, the bond market is going to have to come to terms with reality that this 2% target is all fantasy land—the Fed isn’t going to even come close to achieving that.

[msc545]

We will never have 2% inflation. The billionaires are too busy printing money for themselves to let that happen.

[msc545]

Thanks for MHO

[bobby_bush_eater]

The Fed also uses survey data for prices instead of much more accurate private data available.

[Kelley1]

If you disregard the government's fake statistics and look at real data such as the price of gold, the price of the most expensive men's suits, and the cost of common labor, since the creation of the federal reserve all with near identical results, the average yearly inflation rate is 4%.

[bobby_bush_eater]

They also use inflation which is naturally accelerated by the government spending to the combat other financial figures and refute any word of a recession because fear of a recession is often worse than real recession (which is often healthy and a normal cycle).

They do it by using the inflated spending to try and say gdp is growing when the gdp per capital is actually declining as is human capital and general QOL. Unfortunately this isn't uniquely American and most countries have bigger issues with similar problems, however we have the most to lose.

This yt video covers it well.

https://youtu.be/FqkwMhgwR7o?si=qorWhKioRxwqphj6

[DrPepper12]

The 2% is there to provide a counter to DEFLATION. It is a target rate but the other side of the coin is maximum employment which necessitates having a target rate that is lower than actual inflation as every demographic experiences different LEVELS of inflation but NOT all people are in the workforce

[Surely]

Since inflation is considered on most items that are not everyday consumer commodities. Like gas and such. Of course it is fantasy land

[LiamS95]

I csn still buy a good coffee for a dollar here in Canada

[Reijen]

Fantasy land, until governments get their spending under control.