BLS changing basis for calculating inflation [cooking the books again]

American Thinker ^ | January 18, 2012 | Hugh de Payns

[upchuck]

According to the BLS, prices are dropping, including such areas as food and fuel. Funny, I haven't noticed anything close to a price drop at the grocer or the pump. Regardless, taking this data at face value, it likely reflects a shrinking demand for good and services because of an economic slowdown.

Also, it simply belies the issue with the increase in money stock that has built up over the last several years.

Both M1 and M2- basic measures of the amount of money in circulation, have increased very significantly in the last year.

[BIG snip]

What can this mean? I am guessing that in the most simple terms the BLS is coming up with a new evaluation parameter which will, for practical purposes, bury inflation and price increases even further into the fabric of their reporting. Given the mountain of money that has been created in the last year, the BLS will need this tool to keep the reported or official inflation rate, within acceptable political limits.

[upchuck]

BLS is getting ready with a massive cooking of the books. We'll see this in the January numbers. Gotta have low inflation numbers in an election year.

I reckon they are shooting for inflation of 3% or less and unemployment of 7% or less by late summer. Just in time for nobama's run.

Go read the entire article. IMHO, this borders on criminal.

[Dick Vomer]

Why can’t a conservative think tank put down the wine coolers and get the original parameters from Jimmy Carters administration and run the numbers. Same with unemployment calculation. The bureaucrats are now unionized and need to lie in order to fake the efficiency of their pathetic efforts.

[CharacterCounts]

They can cook the books all they want, but it won't help Obama.

People don't vote on what some report says. They vote on how they feel.

And most people feel poorer today than they did 4 years ago.

[Texas Fossil]

this borders on criminal

Yes. Dem Party = mental disorder with a criminal base. Is and has been.

[Pollster1]

Food prices are dropping:

The "half gallon" of ice cream dropped ten cents when it dropped to 1.75 quarts, and another dime when it dropped to 1.5 quarts.

The half gallon juice only dropped a nickel when it dropped from 64 oz to 60 oz.

Even crackers are smaller.

Marketing experts have decided that the American people are too stupid to figure it out, even if we do notice. And the "per unit pricing" is hopelessly mangled, intentionally so. I bought pickles last night, and the three jars I was looking at (same brand, same shelf) had per unit pricing per pound, per ounce, and per pint - what's the point of per unit pricing if they intentionally use different units on the same product type?

[thackney]

I haven't noticed anything close to a price drop at the grocer or the pump.

Really? What country do you buy gasoline?

[mewzilla]

From last March....

Let them eat iPads

[mewzilla]

From last year, an FR thread on the incredible shrinking grocery item.....

My Groceries have been Obamasized! (Vanity)

[KevinDavis]

Well in my area it is in the range from 3.69 - 3.59 unleaded..

[thackney]

And what was it 9 months ago?

[Iron Munro]

That's a nice chart.

But this one gives a truer picture of the Obama inflation in gasoline prices.

Prices go up to 218% of January 2009 levels then drop 16%.
So now we are only 183% above January 2009 prices. Whoop-de-doooo!!!

[Iron Munro]

Where are they doing their comparison shopping?

In the 1898 Sears-Roebuck catalog?

Every time we buy something at the market the cost is higher or the size is smaller. Usually both.

Now they figure inflation is lower, in part, because gas prices are down from an all-time-high?

What will be their story this coming summer when gas prices hit the predicted $4 to $5 a gallon?

Bush Did It?

[IMR 4350]

You forgot to mention the fresh food that goes unsold at the regular price gets put in the bargain bin at a lower price.

LOOK LOOK LOOK!

The Price of rotten meat has dropped, lets stock up! YUMMMMM!

[IMR 4350]

You forgot to mention the fresh food that goes unsold at the regular price gets put in the bargain bin at a lower price.

LOOK LOOK LOOK!

The Price of rotten meat has dropped, lets stock up! YUMMMMM!

[thackney]

January 2009 prices

Lets be honest. Measuring from January 2009 is hardly indicative of the trends. That was a deep drop, a low point to measure from.

I greatly agree that Obama has greatly contributed to raising prices and keeping oil/gasoline prices high. But much of it is beyond his control. I assume you would not give him credit for the current low price of Natural Gas.

[Grammy]

As a baker, I have watched the cost of chocolate and sugar skyrocket. One brand of chocolate I buy has gone from a 12 oz bag at about $3.25 (sometimes on sale for 2/$5) to an 8 oz bag at $4.29. Sugar has more than doubled. Butter is up at least 50%.

Nope... I don’t see any inflation.

[Zakeet]

Why can’t a conservative think tank put down the wine coolers and get the original parameters from Jimmy Carters administration and run the numbers. Same with unemployment calculation.

John Williams at Shadow Government Statistics does exactly that. The results: inflation is currently rocking along at about 11 percent vs. the official government total of about 2 to 4 percent; unemployment is about 22 percent vs. the government total of about 8.5 percent.

For some mysterious reason, John also has some rather dire predictions regarding the economy in general and impending hyperinflation in particular.

[RC51]

SO instead of investing in stocks, bonds or putting your money into a savings account we should be buying consumable products and reselling them after a few months?

[Zakeet]

SO instead of investing in stocks, bonds or putting your money into a savings account we should be buying consumable products and reselling them after a few months?

I wouldn't recommend keeping fiat currency and investing it about 1-2 percent interest ... and most especially in CD's or any other term debt instrument whose market value will tank when interest rates inevitably soar.

I personally believe it is far more prudent to invest in physical precious metals. Furthermore, if you read almost any reliable economic history text, you will discover that a one year stash of food, medicine and other consumables can indeed be wise.

[Dick Vomer]

we should try to get this guys stats out for the talking heads to use. even forward them to the Republican party idiots that are trying to lose this election.