To: David W. Taylor who wrote (1087 ) 5/17/2000 1:01:00 PM From: MeDroogies Read Replies (1) | Respond to of 2013
Umm...I think you're the one who's off the deep end, now. I'm not hoping for anything. I used proper terminology, not "spin words". It's pretty simple, really. This is terminology used not only by the government (who, if you have an issue with it, you should bring it up with), but by economists as well. Core inflation is the best measure of structural tendencies, because speculation (which takes place in the energy and food sectors) doesn't create the same meaningless volatility. Core inflation accounts for "structural issues" such as wage inflation and lets issues such as drought and cartel supply management sort themselves out. Secondly, I might remind you that AG is fond of misleading the markets. When he first started raising rates, he didn't say anything about the future because he hoped his actions spoke louder than his words. However, just saying what he intends to do is often his way of not having to do anything....(perhaps revisiting his several "irrational exuberance" statements would help you if you need proof of this). Oil, as I pointed out too, did rise recently, but that is clearly seasonal. In fact, most reportage that I've followed on this has stated as much. Besides, raising interest rates has NO net effect on oil prices (which is another reason it's often left out of structural decision making). Oil prices follow capricious patterns. I think you haven't been following my POV at all. As I stated, I'm very bullish, but I'm prepared for retrenchment should it occur. It's an old Boy Scout thing. It also helps that I have a Master's in Economics and have been following the markets for the last 20 years. Being WAY ahead helps, too...something you, unfortunately, don't have the luxury of...do you? Watch the unemployment figures....they will steady/rise over the next few months. CPI (which, btw, usually lags PPI by a month or two - and that is flat) will even out. AG will start to find his fellow governors resistant to future increases.