The *real* solution is what we are going to be forced to do, which is to devalue the dollar and then repay the obligations with cheaper dollars. Where obligations are indexed to inflation simply fudge the formulas and/or numbers used for those indexing calculations.
Some would suggest that America's favorite sport is Football or Baseball. In reality our favorite sport is lying to ourselves.
posted on 10/30/2011 9:59:19 AM PDT
by The Duke
To: The Duke
... Where obligations are indexed to inflation simply fudge the formulas ...
Too late ... this has already been done. The CPI has been 'enhanced' by the hedonics index, the substitution effect, geometric weighting, intervention analysis and chained dollars. The CPI has morphed from reflecting the cost of maintaining a set standard of living to reflecting the cost of maintaining a declining standard of living. This in turn has inflated our real GDP.
Real GDP deflated by de-enhanced CPI:
posted on 10/30/2011 10:41:55 AM PDT
(He who pays the piper . . .)
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson