Posted on 05/19/2008 7:11:49 PM PDT by Kaslin
Government Inflation Data at Odds with Reality
Excerpt:
In an age where governments of every political stripe distort economic data to promote their own self-interests, it's hardly surprising that they present inflation statistics that are wildly at odds with the reality faced by consumers and businesses, and regarded with utter disbelief. In the latest US government report on inflation for instance, there was a glaring "seasonal adjustment," for energy prices that cast great doubt as to the accuracy of the findings.US Labor Dept apparatchniks said consumer prices rose a smaller than expected 0.2% in April, tamed by energy prices, which were unchanged last month. Utilizing an obscure "seasonal adjustment," Labor figured that gasoline prices actually fell 2% in April, which doesn't reflect the reality of what consumers were paying at the pump. Furthermore, the IMF's global food price index rose 43% over the last 12-months, but the US consumer price index for food is only 5.1% higher. * * *
Labor apparatchniks said retail food prices in April were +5.1% higher from a year ago. Yet, the Dow Jones Agricultural Commodity Index, which measures a basket of corn, coffee, cotton, soybeans, soybean oil, sugar, and wheat, was up 40% in April from a year earlier. Major central banks have greatly increased the levels of cash available to banks and brokers to stave off a credit crisis, and much of the excess money has found its way into agricultural and energy futures. * * *
This economic report was posted on my Freeper Page on May 15th. I often post juicy economic news there quietly without any fanfare. Read all my predictions and all my recent posts. I have made it easy for you with all sorts of hot links.
I seem to be batting close to .900 over the past four years. LOL, LOL ! Oh, well . . . Nothing to see here. You might want to check my recent comments about oil prices.
Nada por nada.
“not a great sign” does not equal “collapse”
Long term trends have reversals. I can look at back 10 years and say we did OK.
But what happens in the next 10? That’s what concerns me more.
The governments alliance’s with big business interests is a socialization of the market. free trade no longer exists.
It’s pretty much a given that significantly higher taxes are on the horizon. The laffer curve was the real deal, tax people 100% and the economy founders. I am at a 54% tax rate now ATM, Rangle’s tax, health care, soc sec. and others could push me 60-70% no problem. For me that’s the disposable margin- the new car, the dinner at a restaurant, addition on the house etc. Economy is going to take a hit,longterm no doubt about it.
Collapse is anybody’s call, our economy may just enter a meandering phase, but in any event we are at one of those pivot points and the crisis’s will be handled socialistically for the foreseeable future and it depends how much confidence you have in our government. They have not been real bright in solving the current problems and I can imagine it only gets worse from here on out.
“””Dow Jones Agricultural Commodity Index, which measures a basket of corn, coffee, cotton, soybeans, soybean oil, sugar, and wheat, was up 40%”””
40% feels about right to me when I go to the market to buy some food.
Yep economy’s great, move along, nothing to see here
AND
Are we not lucky? with all those illegals here we don’t have to worry about wage inflation and can guarantee those big corporate profits keep rolling in....
Inflation always results in deflation.
Deflation is just the adjustment after the Boom-bust cycle.
At least in deflation prices are dropping and the dollar can buy more.
Neither is good and both are the results of government interventions in the market.
Surely that is your marginal tax rate, not your overall tax rate. If not, you need a new accountant.
At this point, my personal inflation rate(PIR) isn't anywhere near 12%. It is probably closer to the CPI-U rate. My lifestyle isn't all that energy intensive and I could actually cut back if needed.
I am not gloating, but rather just pointing out that the effects of inflation aren't the same for everyone.
The MSM and the gov are backpedaling as fast as they can to suppress the truth with regards to our economy and the global economy. People are beginning to figure out the depths of deceit involved.
Excellent post and to the point....I agree. Our trade deficit and total debt as a nation is spelling a near future train crash or biblical proportions (so to speak).
I still have my Texas Instruments SR-11 from 1974 that still works on the DC adapter...all of it. Battery pack is shot, however.
Also, I have a 1963 GE AM clock radio that works beautifully.
When growing up, there were American made products that were made to last with many still around.
Seems as though the bottom line is all companies care about anymore.....not customer loyalty nor long term survival.
"BEAR"?
"HYPER-STAGFLATION"?
I have read many of your posts and you are more correct than ever missing the call....good job...you are blessed with wisdom.
That is true, but the time frame we are speaking now is at least 10 years out for buying power in the US to recover. Why? Because of the price of oil & gas and we haven’t the top yet.
Direct hit. The CPI has been so engineered as to not reflect the real life situation it is sad.
Self employed 100% FICA. 15%
federal 35%
CT. state = all taxes property taxes car and house, sales, gas etc. Not hard to get there
New York is is worse, people in the city push 60%
Two sort of average middle class incomes to support two kids and you are at that marginal tax rate. It is the 60%-99% income earners that pay this rate or higher. As we learned from John Kerry's tax returns the top .1% don't pay taxes, and that is politically supported by the teaming masses who pay little tax on lower incomes.
Well, you might look at what Bush did to government borrowing. Clinton had by the end of his term slowed down the rate of borrowing to zero and started to repay the debt. Bush has added another $9.5 Trillion. Do you know how much money that is. It is enough to build 1000 nuclear power plants, enough for our entire current domestic energy needs. No CO2 to end that argument and the power source to power cars.
Even the government statistics on GDP increases are questionable as they depend upon the reliability of their inflation numbers. I posted an alternative take on those numbers, which by the way use the same raw numbers as commerce uses, but removes "hedonic and horizontal substitution corrections." I.e. the government cannot take anti-inflation credit when you substitute hamburger for sirloin because you can no longer afford sirloin. Using uncorrected inflation statistics, the GDP numbers then get rejiggered to show that there is a slow decline in domestic productivity.
You are free to decide which is the right set of numbers, the government's, John William's, or something in between. When the governments jiggered numbers claim a decline in gas prices for April - I kid you not, that is what they said - I think we can toss out the governments numbers.
Bush ought to have the Secretary of Commerce's head for such a blatant and foolish lie. This "let them eat cake" attitude has the natives very very restless. McCain could steel a March on everyone by starting off with some home truths.
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