Posted on 12/01/2005 10:13:36 AM PST by Travis McGee
This is just one of the ways in which sail power is being revived. For nine years a team of naval architects in Copenhagen, Denmark, has been working on a completely new design: a 50,000-tonne cargo ship whose diesel engine will be augmented by a set of high-tech sails set on six masts. Canvas is definitely out. Aerofoils are in.
Ummm...they mention both rates. And they don't try to hide it, it's even on their website.
As for how to track housing costs...I'm not a statistician but if the purpose of the CPI is to measure the living costs incurred by the average household...why limit the cost of housing criteria to rental prices?
I own a house and have a mortgage. Prices of houses in my area double. Does my mortgage double? No.
LoL I knew someone would post something like that. Maybe I should change the example to covered wagons.
Futurist Watts Wacker predicted that, when the Gen-X kids grow up and take over control from the boomers they will do just that. Faced with a staggering national debt, they will elect to simply print the debt out of existence.
My mortgage payment is unchanged.
Don't forget that there are an awful lot of ARMs out there - their mortgage costs will change, and that is a change in the cost of housing.
For hundreds of years the value of gold in say, dollars, has not kept up with everything else. So, before I decided to expect real gold prices to increase, I'd first have to determine that gold demand was going up-- like maybe a new jewelry fad or sudden need for window lettering maybe.
I find the track record for stock prices a lot more convincing.
I never said they try to hide it...but those who support Fed policies also don't often mention the total CPI rate...they prefer to mention the core rate...which, IMO, understates inflation...but you don't have to believe me...look at the various Fed Bank websites...google statements by Fed governors or by Greenspan himself
I own a house and have a mortgage. Prices of houses in my area double. Does my mortgage double? No.
I don't understand your point...if prices of homes double in your area in a short time...you have a case of high housing inflation...a condition that is probably not reflected in the CPI...particularly if the housing boom is the result of low mortgage rates. I only know what's going on in my area of the country...but here housing prices still go up at ridiculous annual rates...and at the same time I see that local apartment complexes are offering all sorts of deals (free rent for the first month or two) to entice renters. I don't know the statistics but I will guarantee that, in any area of the country, average annual rent increases are nowhere close to average annual housing price increases.
Until the early 80's, the CPI did use home prices, mortgage interest rates, property taxes, and insurance and maintenance costs as the bases for measuring housing costs...then the BLS moved to imputed rental value...why?
The question isn't whether stocks are a better buy than gold, the question is whether gold is a better buy than dollars.
The governments calculation is not based on renters only.
Don't forget that there are an awful lot of ARMs out there - their mortgage costs will change, and that is a change in the cost of housing.
An ARM adjusting has nothing to do with the price of the house.
And neither does an adjustment of rent. But both have to do with the cost of living, which is what "cost of living" increases are supposed to be geared towards.
Dollars are money that we can use for buying gold or buying stocks, but I'm digressing. The question in this exchange ( To 1, To 12, 56, & 66) is whether this article is informative, or is it merely Barisheff's spam for peddling shares in his mutual fund.
IMHO it's not informative; it's not even honest.
No, you said it's not included. Its why the CPI does not account for food costs, energy costs.
I don't understand your point...
You said CPI does not include the price of homes and mortgage payments. Why would the rising price of the home I own change my mortgage payment?
I don't know the statistics but I will guarantee that, in any area of the country, average annual rent increases are nowhere close to average annual housing price increases.
You are correct. But if you look at the link to the secret CPI that the government doesn't talk about, you'll see that even though rents have been falling, the housing components of CPI are still rising. OER is rising.
...then the BLS moved to imputed rental value...why?
I'd have to say it is more accurate.
Exactly. There is no inflation or deflation under a gold or silver standard. LOL!!
There are always fluctuations in any market economy, and always will be. But only the infinite printing of worthless unbacked fiat money (as we have done since Nixon closed the gold window in 1971) leads to totally ruinous collapses, leading to mass starvation, bloody revolution, civil war and dictatorship.
For example, I'd say the USA did pretty well across the span of the 19th century, under a gold backed currency, wouldn't you? All in all?
Say, compared to France in the 1780s, or Germany in the 20s? Or what is going to happen to the USA?
Gosh I knew the Fed was powerful but I didn't think they printed an infinite number of dollars.
For example, I'd say the USA did pretty well across the span of the 19th century, under a gold backed currency, wouldn't you? All in all?
Yes, the USA did very well in the 19th Century under a gold backed currency. I wonder how much gold they needed to back our currency in 1800? In 1900? I wonder how much gold they would need in 2005?
I guess if you don't mind spikes of inflation and deflation like we had in the 19th century gold could be dandy.
Yes, I was trying to be polite after my first post brought a wounded howl from the poster, but you are on point. The article was not written as a public service, and should be read with that in mind.
No, and fortunately most people feel the same way. Pegging money to gold gave us worse inflation than we've ever had with the Fed. Even that wouldn't have been so bad if the gold currency would've just settled down to one of it's 25%/year peaks. No such luck. It would loop down to over 10% deflation for a couple months and then back to double digit inflation.
Truly idiotic.
Are articles normally written as public services? Is that the norm?
It's starting to sound like you work for the guy, give it a rest willya? Buy all the gold in the world, whatever...sheesh!
You can't answer my question, so you question my motives instead.
Thanks for the ping. Interesting how a little money and a lot of power can change someone's mind. I believe it was Washington who said that few men can withstand the highest bidder....
Anyway, gold did hit 500 FRN's today and I expect it to go much higher into the future as the dollar continues it's collapse.
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