CPI
Posted on 11/21/2010 11:01:13 AM PST by WebFocus
The CPI was out this week, and it showed a continued drop in inflation. There were those who immediately pointed out that this vindicated the Fed's move to QE2. We have to get ahead of this deflation thing, don't we? Well, maybe, depending on how you measure inflation/deflation. This week we look deep into the BLS website on inflation to see just exactly what it is we are measuring, and then take a walk down Nostalgia Lane. But first we look at what I think we can call The Sputtering Economy, because that will tie into our inflation discussion.
My father, who would be 100 this summer, would hitch up the wagon on a farm in Castleberry, Texas, about 6 miles from downtown Fort Worth, to drive to church or to the Big City for supplies. He was 57 when they put a man on the moon. It was hard for me as a kid to relate to wagons and outhouses, although we grew up rather poor on the outskirts of a very small town on the edge of West Texas, living as country kids. It was a great life. We were all poor and didn't know it.
My kids have some of the same issues about understanding my early era. I grew up as we were first starting to get power lawn mowers, a dream for me, as I hated push mowers and slings. But you had to constantly tinker with them. Neglect them for too long and they would start to sputter. When that happened, you first looked at the spark plugs, then the carburetor and the gas/air mix, filters, etc. And as I got older, that helped with my transition to taking care of my car.
(Excerpt) Read more at businessinsider.com ...
Inflation is here. Just look at your grocery bills.
I don’t believe anything Washington says anyway. They are all corrupt. Republicans need to bring back honesty in government. Even lock the doors and defund the White House if necessary.
Wages are going down. Fact. Just ask those who have ridden a company down or lost a job how much the pay cut was to go back to work.
Most took pay cuts, some significant. And it is not a new problem. It has been going on for quite a while.
My barber just raised his price by 20%
We may in fact get some inflation, but precisely where we do not want it. While the Fed may prefer to look at core inflation, the rest of us live in a world where we buy food and consume energy. And for those in the lower part of the income spectrum, the rising cost of food and energy is disproportionately high. It acts like a tax on disposable income, which will hurt retail sales, which is PRECISELY what we do not need.
The occasional soy mocha I get at Starbucks just went up 8%....
But it is, however, precisely what the elites want.
"He who wills the means, wills the end."
Inflation in some areas, but not in residential or commercial real estate. The Fed needs real estate inflation to save the banks from collapse. It was the Dems, Fannie, Freddie, ACORN that caused the residential problem. It was Obamacare, tax uncertainty, Cap&Traade that caused the business uncertainty. Don’t know why they are letting the FED try to prevent a collapse since it seems collapse could be the only logical result of the actions...i.e. intentional Cloward-Piven strategy.
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