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Politics : View from the Center and Left

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To: Steve Lokness who wrote (149575)11/11/2010 10:49:08 AM
From: JohnM  Read Replies (3) of 541671
 
Same with inflation statistics - play with statistics all you want but if the items you buy regularly are going up - that to me is evidance of inflation.

Nope. Only means prices are going up for you. Lots of reasons can account for that that would still mean national aggregate inflation figures would be flat to down.

Much of it has to do with cognition. You will recall the old bromide that stock traders are much more pained by their losses than their gains. Very true for me. Just did a check over some option plays I made in the past couple of years. Not good. More than a little sorrow; what we could have done with that money. But then I stepped back to look at our larger picture. We've made some terrific larger picture choices that are much bigger pluses than the option minuses.

So when the price of eggs, milk, and butter are going up, your grocery bill actually may be flat to down; or even if yours is up other folk who shop at the same store but buy different items may have a different experience. And so on.
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