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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (18956)	12/18/2004 8:01:04 PM
From: Chispas	Read Replies (1) \| Respond to of 116555

Aka, on my 'last minute' Christmas shopping trip to Fort Worth Coin Co. today, they were sold out of gold and silver American Eagles. I asked, "Was this a good Christmas season this year?" The owner after making the sign of the cross, said, "You wouldn't believe!" Kinda' 'made my day' to see his smile. <g>

To: yard_man who wrote (18956)	12/18/2004 8:45:38 PM
From: Elroy Jetson	Respond to of 116555

The Mises website presents one explanation of short-lived products. In some ways shoddy goods are what the market wants - cheap and replaceable. mises.org But there's another way to view the same explanation. People still have the option of buying quality products in most product categories, but they are so expensive that they appeal to only a small portion of the market - at least when cheap inferior substitutes are available. The quality goods are affordable only to a small percentage of the population, as were the original quality goods. This highlights one of the major errors made when "quality adjustments are made to components of the CPI. Let's take an example of a quality three-speed blender which is replaced by a shoddy multi-function blender with a short life. The BLS takes note of the "quality improvement" of the shoddy multi-function blender and reports a price reduction because of the additional utility. On the other hand, the general reduction in blender quality is ignored, because that would require a calculated increase in price. This is strongly discouraged because it recognizes inflation which provides the basis for a modern Monetarist economy. .