Posted on 09/14/2014 12:55:21 PM PDT by expat_panama
I take it that the Federal Government will now see fit NOT to increase the Social Security payments to the elderly next year.
It makes me happy that there is no motivation for the Federal Government to define the CPI in such a way as to low ball inflation. ; )
FOMC minutes:
OUT: “Inflation has moved somewhat closer to..longer-run objective.”
IN: “Inflation has been running below the..longer-run objective”
Let me take a wild guess: More of the same.
Good afternoon.
5.56mm
As expected, no change. The lower inflation piece makes it more likely that there won’t be a change for a “considerable period.”
Dunno about y’all but I can sure live w/ “boring” just fine...
The non-core CPI which would include I guess such things as the cost of ground beef topped $4 for the first time. The graph speaks for itself.
Over the past seven years, the non-core components of the CPI and PPI have increased at about 37%. Inflationary pressures clearly exist in these non-core components. In the past seven years, the non-core components have increased on average 5.3% per year. From an inflation standpoint, this is an extremely aggressive level of inflation. However, most economists on a month-to-month basis discount the increases in the non-core components. That's a mistake longer term. The non-core components are what we depend on for a day to day living. Every month, regardless of economic environment, we need to spend money on food and energy. If the prices of food and energy are increasing aggressively, then our cost of living increases aggressively too.
I guess that's what food stamps are for? Are there going to be petrol stamps any time soon?
WASHINGTON (AP) — The Federal Reserve signaled Wednesday that it plans to keep a key interest rate at a record low for a considerable period because a broad range of U.S. economic measures remain subpar.
LOL
Great post PAR24
Chained CPI - if the price of steak goes up, folks will change to ground beef. If the price of ground beef goes up, people will change to hot dogs. And if the price of hot dogs go up, people can start eating grass. So there is no inflation.
So shut up, eat grass, and enjoy the stable economy that Washington and the International Bankers have given us. The economy is going great. Big Brother says so.
PAR24=PAR35
Hi.
“Dunno about y’all but I can sure live w/ “boring” just fine.”
My broker agrees with you.
Although, an annualized 6% GDP, w/Govt deficits continuing to decline, an increase in the labor force participation rate would show there is real demand.
That kind of”boring” I would like.
5.56mm
Understand that the zero is just this past month -- it's following previous higher monthly jumps. Over all prices since last year are up 1.7% --and likewise for the "core" index figured without the food'n'energy.
OK, so we all need food'n'energy but what happens is that the problem of all-item prices is that most of the price swings are food'n'energy while most of our shopping is other-than-food'n'energy. fwiw, while this past month's core was zero, August's food'n'energy prices went down so much they lowered the overall August price average down to -0.2%
lol
I agree the US has the same mentality. What a mistake.
Whoa— the FOMC statement has been doubling in size every every three years for quite a while now. That means in say, 50 years, the statement will be 100K pages long —enough to fill a couple good size book cases.
Hmmmm, a hundred years later big enough to fill all the buildings in an average sized city...
Happy morning all! Seems most stuff went nowhere yesterday but today's futures say stocks up and goodby metals Today's doc dump:
Initial Claims
Continuing Claims
Housing Starts
Building Permits
Philadelphia Fed
Natural Gas Inventories
Leading Indicators
News:
Fed Plots Cautious Course on Rate Rises Wall Street Journal - 17 hours ago WSJ's Jon Hilsenrath discusses the Federal Reserve's decision to hold steady on interest rates, as the central bank foresees a rate increase by early 2015.
At the Zelman housing conference in DC. Fantastic view on the housing market. Will try and give a summary when it’s over.
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