Skip to comments.BLS changing basis for calculating inflation [cooking the books again]
Posted on 01/19/2012 5:23:47 AM PST by 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.
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.
(Excerpt) Read more at americanthinker.com ...
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.
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.
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.
Yes. Dem Party = mental disorder with a criminal base. Is and has been.
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?
Really? What country do you buy gasoline?
Well in my area it is in the range from 3.69 - 3.59 unleaded..
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!!!
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?
LOOK LOOK LOOK!
The Price of rotten meat has dropped, lets stock up! YUMMMMM!
LOOK LOOK LOOK!
The Price of rotten meat has dropped, lets stock up! YUMMMMM!
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.
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.
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.
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.
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.
Williams has been around for years, and many intelligent business leaders and politicians subscribe to his newsletter, read it regularly and rely on his advice religiously.
A huge problem with the talking heads discussing John's results lies in the government's dependency on the use of controlled inflation to manage otherwise untenable levels of spending and debt. For example, the government adopted CPI-W for calculating cost of living adjustments for Social Security. Coincidentally, the index discards changes in food and fuel because, get this, they are "too volatile." The index is heavily weighted (45%) toward housing costs (something that seniors buy every day whose price surprisingly has been going into the toilet). The net impact of changing back to the old index would be to more than double SS payouts. The president under whom the change was made ... Bubba Clinton.
Unfortunately, John contends, and I concur, that Fed policy and unconstrained spending has created a situation where economic disaster can no longer be avoided. He makes a compelling case for currency failure in his annual Hyperinflationary Special Report. He is scheduled to release a new update any day now, and I believe it is available without charge. If this is not true, you can obtain a copy of last year's edition for free. It is worth a read unless you suffer from high blood pressure.
I'm pretty much in vapor lock right now. I can't believe what's happening to our country.
If you want my honest opinion, I think that the "bureaucrats" are going to get us in a shooting war with Iran/Russia/China in order to get rid of a lot of the serfs. The collapse is coming, they see it and that's why we are getting the Homeland Security thugs, TSA punks and now the "Viper" teams... they will make sure that everybody stays in place and doesn't "agitate" when the SHTF.
I'm getting my AR-15 a companion and loading up with night sites and ammo. Lots of shotgun ammo and really trying to just do a little at a time.
I've never felt like this before. I feel that with the last election and the blatant fraud that our president is we have crossed the Rubicon as a country. Just amazing........when the natives get restless in NYC, LA, DC and other big cities it's going to be interesting.
“But much of it is beyond his control...”
The democrats would never let that fact stop them from blaming a bad economy on a republican president. Why should we?
If you want to be as dishonest as them, you go ahead. I'm better than that.
Well, there’s dishonesty, and then there’s politics. People blame the President for the state of the economy whether or not he has as much control over it as they seem to think. This is the general, voting public I’m talking about here, from both parties.
If the one side is willing to take advantage of that and the other isn’t, then it’s political suicide, since we are talking about the biggest issue in Presidential politics, in general and moreso in this cycle. Maybe if you are too principled to go there, you should avoid the murky waters of politics altogether.
I find being honest in these discussion give my words more weight in the long run.