Silicon Investor (SI) -- The First Internet Community

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.

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

To: XoFruitCake who wrote (54371)	8/6/2006 4:21:37 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Scared in Atlanta globaleconomicanalysis.blogspot.com Mish

To: XoFruitCake who wrote (54371)	8/7/2006 2:10:16 PM
From: benwood	Respond to of 116555

I guess I wasn't clear enough. The compounding you computed is the CPI-understatement, which coincidentally is about 1/2, so the same as the CPI itself, roughly. That is, using annual compounding: Disney World Index: 5.0% inflation over last decade and a half; CPI: 2.5% Understatement: 2.4% per year. I was using the Disney World admission ticket price to work out the inflation understatement in the CPI. It's only a single data point, of course, but not a bad one. And that understatement, which has been reflected in my parents' income in the past 15 years, paints an accurate picture of their decline in purchasing power. I found my ticket stub, btw -- $33 on Feb 15th, 1992, so 14.5 years ago.