The View From 1776

Core Inflation?

The Federal Reserve uses the core inflation index, which excludes petroleum and food prices, as its standard for maintaining monetary stability.  Theoretically oil and food prices distort measures of inflation, because they are subject to temporary destabilizing factors. 

That’s analogous to excluding all strikeouts when calculating a baseball batter’s hitting average.

In the real world, outside the fairy land of liberal-progressive Keynesian monetary manipulation, the “temporary” upthrust of oil and food prices in U. S. dollars has been unremitting for the past twelve years, primarily because of the Fed’s easy-money, low-interest-rate policies.  That is massive inflation.

Check out the numbers on the Mises Daily website.

Posted by .(JavaScript must be enabled to view this email address) on 01/16 at 06:20 PM
  1. As the article points out, the recent policies have made the 1% richer, and the middle class poorer. This is a natural result of having Wall Street financiers and speculators at Goldman Sachs and Chase run the Treasury Department and the Federal Reserve?

    That understood, how can Obama keep a straight face when he pledges to make the rich pay more taxes and to help the Middle Class? Pure unabashed hypocrisy and lies!
    Posted by bill greene  on  01/17  at  12:37 PM
  2. The mere head-line of TEB's post (just after updating some unemployment insurance claims graphs) cost me hours of fiddling with some of the chained and unchained CPIs -- all items, food & bevs, energy, all items less food, bevs & energy...

    They're certainly jiggering with some things, and have been very aggressive about it since about July... They release numbers that are out of the usual patterns, always with a media bump that it's great news, then issue sizable revisions and then revise them again.

    Well, really there's been something amiss since about 1980 (give or take a few years) when the PPI diverged from CPI.

    My own suspicion is that, as the public gets wise to one aspect of the scamming, they try to find wiggle room by trying to fool us some other way, then we get wise to that and they try something else... on and on with active resistance to genuine reform to remove past government distortions and let the economy and markets heal.

    Rather than eliminating economically unsound and unconstitutional activities, they just pile more fraud on top and hope no one will notice.
    Posted by .(JavaScript must be enabled to view this email address)  on  01/17  at  08:08 PM
  3. IGO is right--there are lies and there are damn lies! Never believe statistics--especially government statistics!

    There is an old joke about answers to the question: "How much is two and two?" The accountant answers: four; the lawyer answers: it all depends; and the statistician answers: what would you like it to add to?

    Let's face it: Our executive branch is corrupt, and liars!
    Posted by bill greene  on  01/17  at  08:37 PM
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