mr peters speaks about inflation and how to measure it;

How do you measure a bubble?

One way may be to use what is styled “inflation” – that is to say, the devaluation of the buying power of the fiat currency we’re forced to use as a medium of exchange – to see how much more you have to spend today for the same thing that used to cost much less, yesterday.

My old house up in Northern Virginia was built in the early ’70s. I bought it in the mid-1990s for about $160k. It’s modest (appx. 1,200 square foot) house built on a slab that was poured on a quarter acre lot in a subdivision of similar houses. These were working and lower middle class houses when they were new – and when I bought my house in the mid-1990s. That same house – and others like it, in the same neighborhood – is now a $600,000 house. When I lived in Northern Virginia – which I did until the early 2000s – $600k would still buy a house twice the size of my old house and (usually) on at least an acre or two of land...........more......