Bagel Index Is Showing Inflation's Bite

The Street ^ | November 22, 2006 | Jim Jubak

[jdm]

There's always muffins.

[GodGunsGuts]

ping

[GodGunsGuts]

LOL!

[MarkeyD]

I knew it when the lemon cookies went from 30 cents to 65 cents at Starbucks.

[Thunder90]

Everyone knows that the world economy is important in forecasting future conflicts, and if it tanks, the eurasian powers that are hostile to us will move against our allies in the region and us.

[goldstategop]

If we get stagflation back, I'll be glad I've locked in my next home purchase long before every one around me is paying 18% for their mortgage.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[Old Professer]

Trying to turn bagels into gold, again.

[GodGunsGuts]

I knew it when my #3 McDonalds value meal went from $4.95 to $5.05. I was expecting change, but instead I owed them 5 cents! And don't get me started on what gold has been telling us for the last five years!!!

[GodGunsGuts]

If you ever manage to figure out how to do that, let me know. I'll be the first in line.

[CharlesWayneCT]

My gold stopped talking to me a while ago, so I'm at a loss on that score.

[Young Werther]

We had bagels for breakfast at work.

Bagel Story: I attended Rutgers in the early 60s and was a member of the Newman Club, (Roman Catholic). We were invited to a mixer at an EXCLUSIVE girls college in Lakewood NJ. Georgin Court College was founded by the Catholic Church and situated on the Jay Gould estate, (1800s Robber Baron), which he had bequeathed to the Catholic Church. The Nuns ran the school and when they said None they meant NUN!

We went to the second mixer and decided to have some fun. We stopped at a bagel bakery in Lakewood, (Lakewood was and is a noted Jewish community) and bought bagels and creme cheese. When we arrived at the mixer we acted kinda dumb and asked if this was the Hillell mixer, (Hillell was the Jewish version of the Newman Club). The Nuns were scandalized until they realized our joke, then they laughed The Nuns were sumthin else. Curfew was at Midnight and at 5 minutes till they would enter the hall and bang cymbals and gongs to chase us off!! When dancing they enforced the two fist rule!

[ex-Texan]

Another measure of inflation is auto repair costs. In 2001, I was forced to pay for some mechanical repair work. The hourly fee at that time was about $ 49/hr. Today the hourly rate averages $ 72.50 per hour in Portland. That is an increase of over $ 23 per hour. Do the math. Shocking! And the Fed is still playing games with CPI figures claiming inflation is under control. U.S. Wholesale Inflation Jumps CPI does not reflect the true price of energy or the price of energy on retail prices. Home sales prices have been ignored because the Fed uses a complicated fair rent index substitute. Greenspan and Bernanke are cut from the same mold. [More?]

[GodGunsGuts]

They are already doing it. But you are right, it will accelerate the process immensely. I'm surprised how many people want the dollar to fall. Don't they realize how much power we will lose if the dollar, as the reserve currency of choice, begins to give way to the Euro? Not only will it have massive international economic implications, but it we reduce our geopolitical clout as well. We need to save the dollar by bringing it back on the gold standard. Here's a good article to get us thinking in the right direction (read the whole thing...it's worth it):

The Case for a Genuine Gold Dollar

http://www.freerepublic.com/focus/f-bloggers/1696147/posts?page=15

[GodGunsGuts]

You are absolutely right. Many economists and financial writers have been decrying the skewed CPI for some time now. When the true magnitude of inflation completely filters through the economy you can bet these people will finally get the attention they deserve.

[Perdogg]

That's not inflation, that's supply and demand.

Just because the price of bagels are up, doesn't mean we have inflation.

[Perdogg]

He's not even a business/economics major, he's a journalism major.

[Perdogg]

Explain to me how you adjust inflation to consider changes in technology. For example the TV you bought 20 years ago vs. the TV you bought today - How do you measure the changes in cost??

[ScottfromNJ]

"Just because the price of bagels are up, doesn't mean we have inflation."

Agreed. For example, what does the price of Bagals have to do with what we pay for gas, which has been down over the past few months, and is also factored in the over-all inflation index.

[GodGunsGuts]

Have you taken the time to investigate whether it's just supply and demand or too many dollars chasing the same goods???