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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (1873)	5/26/2003 11:46:20 AM
From: KyrosL	Read Replies (3) \| Respond to of 4905

How do you explain the fact that other measures of inflation, like the wholesale price index and the GDP deflator are rising even slower than the CPI? Are they, too, being manipulated in your opinion?

To: Crimson Ghost who wrote (1873)	5/26/2003 12:06:49 PM
From: LLCF	Respond to of 4905

<Does anybody here really think that prices are increasing just 1-2% per annum?> You mean on my theoretical 1962 Chevy Bel-Air! -ggg- DAK

To: Crimson Ghost who wrote (1873)	5/26/2003 12:25:15 PM
From: Wyätt Gwyön	Respond to of 4905

productivity has been overstated due to hedonic adjustments. the bean counters in the Bureau of Lies and Statistics see that a Pentium IV is more powerful than a 486. they ignore the higher sales of semiconductors in the late 90s and say that today's lower nominal sales are higher in real terms because qualitative (hedonic) improvements mean you spend less time watching the sand clock on your mouse cursor between posts on SI. if you look at nominal sales of many technology categories, they are flat to down over the past 5-10 years, but the amounts are up in real terms and this adds to quote productivity unquote.

To: Crimson Ghost who wrote (1873)	5/26/2003 12:29:42 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 4905

The whole "deflation" thing is a big lie at worst and a gross exaggeration at best. What the Fed is really worried about is keeping the credit bubble alive as long as possible. i would actually be comforted if the Fed were that cynical, since it would imply that they understood what is going on at least. but i think the simpler answer is that they actually believe their own bullsh:t and think people flipping houses signifies real growth in our economy. i think it is fair to say that the Fed really and sincerely believes deflation is a serious problem, and they really and sincerely believe they need to debase the currency to avoid it.