You seem to miss the main point, much like Elroy who was the one that brought inflation into the thread. Do you honestly believe that base hasn't grown after having looked at my chart?
Perhaps you're also unaware that I also track and calculate velocity and with a broader scope than anyone else I've ever seen, and am quite aware of how far it has fallen in recent years? Just using only one money supply measure is truly foolish in my book and shows a poor overall understanding of real economics, and not only because most don't even include credit (including the guy in your link who is one of many who apparently don't think that credit is part of total money supply).
Being the first one on the planet to have reconstructed M3 (about 6 months before John Williams), I'm also quite aware that its annual growth rate has been falling for years. Also, the huge majority of my gold & silver trades since gold peaked around $1923 have also been on the short side, my main point being that I'm not expecting high inflation in the near or intermediate future... so please put this whole bunch of inflation crap away and simply realize that Elroy is just plain wrong about base growth. He changed the subject to try and divert from the actual and simple facts, and is blowing smoke.
Also, if you or he believes that the BLS is actually accurate on their CPI calculations or even with the limited and ridiculous scope of CPI itself, I wish you luck since you'll need it. And note that my own CPI calculations (Consumer Purchasing Power Loss Index, aka CPPI) are nowhere near as high as John Williams work which I believe are at least 2x higher than inflation actually is currently. And yes, my work also shows a drop in inflation, especially the last 6-8 months. And using Krugman and the BPP index to counter CPI being low is just plain silly. Do you know that the BPP index has zero services included, only goods? An index that misses ~70% of the economy is damn near worthless. Plus, Krugman has zero cojones to directly address any of the actual issues like the big problems with OER and medical expenses, and he's a heavily biased political hack and dipwad who has made many errors over the years. You really give credence to a guy who wishes for an alien invasion and actually was promoting a housing bubble back around 2002? He didn't even mention when BPP was way higher than CPI for months recently. What a fact ignoring biased maroon, at best!
CPPI
Lastly I believe that Williams is incorrect on his M3 reconstruction and that the total is substantially low, probably in his work on Eurodollars reconstruction. Its far from the data that the BIS publishes, or even the Fed's H.4.1 data on Eurodollars. |
