[ExI] Inflation graph
spike66 at att.net
Wed Oct 30 04:05:41 UTC 2013
>... On Behalf Of BillK
Subject: Re: [ExI] Inflation graph
On Mon, Oct 28, 2013 at 4:48 PM, spike wrote:
>>... John, what I am saying is that these inflation numbers depend on what
> it is you are buying... Housing around here is going up like crazy as
> foreign money is coming in and snapping up the available homes. But I am
not buying; I already own one.
>...You're right, Spike. The government inflation number is a big lie. As is
the unemployment number.
It isn't so much a lie, as it is arbitrarily calculated. If you have a car
which is likely to last for the next 30 years, it doesn't matter much how
fast cars are inflating. If the price of postage stamps is going crazy, it
doesn't matter much because we don't really buy them anymore and even if we
do, they never did amount to much. I used to spend a huge percentage of my
money on information, in the form of books. Now I don't: there is more
information available nearly free than I have time to devour. I don't need
a lot of bandwidth: nearly all the information I consume is in the form of
text, which doesn't require much.
So everyone has a personal inflation number, based on what they buy. There
is not a single "right" way to determine the inflation rate, yet we
routinely see it announced with two digits of precision.
>...Consumer inflation should be nearer 10%.
But what if a prole likes the kind of stuff which has been declining in
price? I do: electronics. Capabilities go up, waaay up, while prices come
down. I have kept data on my expenses in detail since 1989. I bought my
present home in 1995, so all the data since then are directly comparable.
Over that period of 18 years, my expenditures have actually declined
slightly, without even attempting any arbitrary correction for inflation,
this in spite of adding a family member seven years ago.
I don't argue that inflation is low or high. I know it is high for some
people. It is very low or slightly negative for me. I am one who is lucky
enough to live very close to the office. Now of course I don't have an
office, but back when I did, I didn't need to buy much fuel.
>...And Unemployment is approaching 25%...
Ja, and they tell me I don't count in that number anymore. After 2 years,
you drop off the list, even if you are still actively looking for work.
>...The flood of money printing is going into very few hands. It is being
spent on luxury goods, mansions, Ferraris, yachts, etc. While the majority
of the population is suffering...
Well, ja. On the other hand, a lot of people are employed building
mansions, Ferraris and yachts. That's why they cost so much.
>...This article is worth reading.
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