Source: TW
(Commenting on Lyn Alden inflation metrics)
In America, housing, medical care and education have all been going up in price faster than CPI inflation for 20+ years. Those are 3 big categories of spending. This reflects a real erosion in living standards and economists have not even acknowledged there is a problem.
The models academic macro economists use to describe the world do not have much to do with reality. As a perfect textbook illustration(!), Paul Krugman writes that Silicon Valley Bank episode is an isolated one just as a global banking crisis erupts, leading to a panicked Fed.
Yet these same flawed models are driving policy around the world. Krugman, Bernanke, Yellen … are all considered academic rockstars and continue to exert enormous influence over economic thought and policy.
This is the real systemic (epistemic?) problem in economics.
It somehow never seems to occur to Krugman that we can have an inflationary depression. In fact, that is the most likely path at this point, with the Fed throwing open the flood gates.
Buy gold, buy crop land and actually farm it because we need food and reduce energy use.