From Ron Griess and the always fascinating Chart Store, we see a very different read of inflation.

He shares this awesome selection from his weekly blog (subscription only) of commodities,  crude oil, copper, gold, silver, corn, coffee, cotton, and the S&P500 — all priced in terms of hourly earnings:

Click to enlarge:









Category: Commodities, Gold & Precious Metals, Inflation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “Hours of Work Needed to Purchase: CRB, SPY, Gold, Oil”

  1. Old Rob says:

    You can see the QEs’ effects quite well.

  2. CANDollar says:

    Fascinating…. however….
    like QE don’t changes in the ratio of productivity in farming and mineral extraction to labour since 1962 also skew some of this data?

  3. murrayv says:

    The &P 500 chart tells us that the hours should be at about 30 to 35 to get beck to the 1960s pre secular bear level and the 1990s pre bubble level. Given the growth in inequality of wealtyh and incomes, there may be a new base level as high as 40 which would still imply a near 45% drop from where we are to get back to a sustainable level. Theb secular bear is not over.

  4. paulyarbles says:

    How is the unemployment rate factored into these charts?

  5. murrayv says:

    The oil chart clearly shows the 2 oil shocks, the long recovery from the second shock as non OPEC supplies were ramped up, and then the steady price climb since world oil supply plateaued in late 2004. the trend would imply $4.50/gal gasoline by 2014.

  6. Petey Wheatstraw says:

    I’d like to see the hours worked to earn a dollar, over the same time frame.

  7. Moopheus says:

    Good thing most people spend very little of their income on bulk raw wholesale commodities. It would be interesting to see these charts relative to similar charts of ordinary retail products made from these commodities.

  8. RC says:

    Fascinating information. Thanks a lot for posting these charts, Anna W!!!

  9. Randel says:

    Since 2002-2003 looks to be the low point in terms of number of hours to buy nearly most of these items, I guess we can mark 2002-2003 offically as the Good Old Days.

  10. Randel says:

    Sorry for the spelling error: officially.

  11. iamsosmrt says:

    The Fed is generously supplying the economy with ZIRP as part of its dual mandate to increase the amount of jobs; the efficacy of which is already being debated. But here we see, in the form of consumer spending, that more jobs will not be a boost for the economy (if inflation remains). If you are a Fed governor, do these charts make you want to change course?

    Also concerning is that these charts show the consolidation of wealth already occurring as we argue about redistributing it.

  12. Blissex says:

    «The Fed is generously supplying the economy with ZIRP as part of its dual mandate to increase the amount of jobs;»

    The main purpose of the ZIRP is not at all to support the economy, but to provide unlimited cheap working capital to deeply insolvent financial corporates to whom nobody else dares lending. This happened in Japan, then in the USA, then in Europe.

    The second purpose is to provide them cheap unlimited working capital with which to buy higher yielding assets, making huge risk-free profits on the spread, and thus rebuilding their capital base (and vastly increasing that of their management).