Then again this is how the governement spent our tax dollars to get the advice of the famous Rand Group...
that Fed article about CPI being OVERSTATED was good thanks whats amazing is how ppl seem ready to bet the farm on minor changes in a single monthly stat of a particular series...
GDP, ISM, Philly Fed, housing fundamentals, deficit and inflation fundamentals ... all deteriorating rapidly. Housing is actually fvcking scary. Market keeps going up. Everything is right on schedule =) lookout 2007
Laputa, i think it was during Reagan years that the method of calculating the inflation rate was changed to take quality into account. (Anyone here know for sure? ) This gives a significantly lower figure for inflation and therefore the government saves billions on entitlements that are indexed to inflation. There is also savings from lower TIPS interest (a good reason not to buy TIPS), and to the extent that our creditors are hoodwinked by these lower inflation numbers, we save billions in servicing and financing the national debt. Inflation is welcomed by those with heavy debts, provided their incomes adjust upward with inflation. In the case of the US, however, it is likely that incomes will not keep pace with real inflation, though they might come close to keeping up with the official figure.
the whartoon kid hasn't posted since mid-nov it seems... must have changed his handle again... to PunishedPermabearPuppet or sthg...