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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (46292)	11/30/2005 10:41:31 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

GDP is adding price inflation reported Q3 is final at +4.3% growth it is more like 1%, if that we have at least 3% cheated vig from pure price inflation prices paid in Chicago PMI was up sharply higher prices are across the board for energy and materials the culprit mechanism is in the deflator, intended to remove price inflation if that mechanism is turned off, then inflation is interpreted as growth !!! the GDP Deflator is running a full percent below CPI the CPI is at least 3% too low the pre-Clinton CPI calculation formula shows +7.5% now the spin is ..... the Gulf Coast hurricanes shaved 1% off GDP add it in and you get over 5% GDP growth THE ONLY PROBLEM IS THAT THE 1% REFERENCED SHOULD BE SUBTRACTED IN FACT, PERHAPS 4% SHOULD BE SUBTRACTED the GDP Deflator over 21 months shows +5.1% the GDP Deflator is up only 2.86% from Q3 to Q3, yr over yr an accurate GDP Deflator should be up 5% to 8% annually !!! this is absurd, a real big untold story the more price inflation we get, the more growth it is labeled if energy prices come down in Q4 reports, then so will GDP since the great majority of our economic growth is improperly adjusted price inflation, or rather GDP growth is purely price inflation not removed one iota / jim