Consider an airfare from San Jose, CA to Austin, TX. The fare is huge, 20-50%+ higher than a year ago. Higher price = sign of inflation or at least non-deflation? NO it’s definitely a sign of deflation. About 50% of the US airline fleets are parked in the Nevada deserts because they cannot operate at a profit. The available planes have been cut in half. A mere 40% loss of air travel demand creates a supply surplus and higher prices. The net performance/loss of air travel demand is in fact 30% to the red side. Assets are being taken out of service, not the other way around.
We can’t believe a lot of the news we might hear. We are in a deflationary mode in the US. We need to adjust our plans accordingly. Don’t get left out.
