I didn't realize it was ever used.
Posted on 03/28/2011 7:51:59 AM PDT by Free Vulcan
U.S. PCE inflation up 0.4%, most since July 2008; spending up 0.3%
Real disposable income declined in February as consumer prices jumped by the largest amount in 2 1/2 years, the Commerce Department reported Monday.
Economists said the data show that higher prices for gasoline is starting to take some of the steam out of the economy.
The personal consumption expenditure index, which Federal Reserve officials say is a more accurate gauge of inflation than the better-known consumer price index, increased 0.4% on the month, the largest monthly gain since July 2008.
(Excerpt) Read more at marketwatch.com ...
If only someone would do the calculations the old way, without using soft metrics such as hedonics and the substitution effect.
Do you know anyone who does that? Me neither.
Thanks
Good try again.
Ah so now we’re back to ignoring that changing the character of the CPI (just like changing the character of the unemployment rate) eliminates comparing apples to apples. By replacing set standards with soft morphing standards such as hedonics and the substitution effect, the CPI can not longer be reliably used to evaluate return on investment nor how one’s income stands up to inflation.
(FYI the PE uses an enhanced form of the substitution effect.)
You and Williams know more about "the impact on the CPI of using soft metrics such as hedonics and the substitution effect which are subject to corruption by the power that be du jour" than the entire bond market combined.
Uh, huh. Sure.
You believe Shadowstats because you want to believe Shadowstats, not because of anything factual or because you possess an understanding of the marketplace or how these calculations are determined. Debating people with a fixed mentality is a waste of time. This is just more proof.
expat_panama,
Congratulations your have gone full circle. There is nothing wrong with using a ‘fudge factor’, if it is accurate.
And again you ignore the addressed nor denied the corruption of the CPI by using soft metrics such as hedonics or the substitution effect, both of which are wide open to manipulation by the latest power that be. Also ignored is the effect of shifting arithmetic weighting of the CPI components was to a geometric weighting which automatically gives a lower weighting to CPI components that are rising in price, and a higher weighting to those items dropping in price. Weighting works in conjunction with the substitution effect.
Thanks.
People who say things like this and aren't just making it up have actually checked, and can show a BEA link explaining the actual effect they're objecting to. It's really easy to believe you haven't a clue here, please clear this up and show us something from the Commerce Dept. showing the effect you you're talking about and explain in your own words what it should be.
If the CPI's really important to you, you can always start some other thread and have a good rant over there.
Did I miss the post where you explained how it is you and Williams know more than all those folks out there in the bond market who actually invest their money based on the fact that you have no idea what you're talking about?
You (via Williams) claim that the "unvarnished" CPI is approximately 10%. The current yield on a 10-year treasury is 3.38%. They don't seem to be having a whole lot of trouble selling them at that yield. Who should we believe......the massive breadth and depth of the global bond market or some forum warrior named algernonpj and a guy selling a newsletter who won't show his work?
What to do...what to do....
LOL!!!
I hadn’t even thought of the bond market, it’s like talking to the chairman of the Flat Earth Society, such a target rich environment I don’t know where to begin.
I'll bet this guy Williams is making a nice living telling the fixed mentality crowd what they want to hear. I'll even bet he invests some of their cash in corporate bonds yielding a lot less than the rate of inflation he claims exists. There's one born every minute.....
I didn't realize it was ever used.
To prove your fudge factor is accurate, you'd have to use the old method for at least 3 years, 10 years would be better, for such an important measurement, before you could honestly stop using the old calculation.
The funny thing about John's fudge factor is that it's getting bigger. About 2% in 1990, about 7% now. How can it get bigger if he doesn't actually do any calculations?
I mean unless he's just a liar selling garbage to people who don't know any better?
It is getting tight and will more so, as part of the cost of the war against God (http://peacebyjesus.witnesstoday.org/RevealingStatistics.html), but the Lord can see you thru. He has, in His mercy and grace, provided as we seek to obey Mt. 6:33, Sometimes our faith is tested, but in over 30 years of living by faith, as part of a faith ministry, without an assured income or Gov. funding, or practicing public fund raising, He has always come thru to meet true needs, and then some, thanks be to God.
As tough as it is for so many of us, I must admit I am enjoying the suffering of the commie morons who voted for this THING in the White Hut.
Oh, I believe that with all my heart. I have told my wife that no matter how bad it gets, even if things go to ruin, I am not worried. We will survive because we have God on our side. I have all the trust in the world that He will see us through. We might not have the same level of life that we do now, but we will have what we need to survive. Besides, we are only passing through this world for a tiny short period of time, and then we are gone. But, I know that when I leave, I know where I am going. Without a doubt I know that. That is where our faith is and we know that it will see us through. God bless for your post to me.
And as you did not have to bring your own rifle to the army, but they provided what you needed to do your job, so the lord will for us, if we seek to be good soldiers in the Lord’s army, from which there is not retirement this side of glory. I need to be a better one.
Thanks for reminding me. My "to do" list is just has that one thing left. Seems I got all the easy things checked off first...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.