Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Knighty Tin who wrote (54048)	3/31/1999 11:38:00 AM
From: Freedom Fighter	Read Replies (2) of 132070

Mike, There's been a controversy among economists about whether CPI overstates inflation or not. There's also been a few changes to the formula for calculating it over the years that have tended to lower the reported inflation rate relative to what it would have been if calculated the old way. I wonder if some of this new world we have is just related to changes in our stats on inflation and not to the underlying reality (if we could measure it properly or at least consistently). I wonder what serious bond investors think about this issue. How can you know if real rates are high or low if you really don't know what the inflation rate is? How can you compare real rates to the past if the CPI calcs have changed over time? If the Fed believes we are in a serious bubble and doesn't want to raise interest rates, doesn't it have a vested interest in wanting the CPI calcs adjusted in ways that make inflation look lower? Any thoughts anyone? Wayne

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next