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

To: GraceZ who wrote (78119)	1/25/2007 2:13:52 PM
From: bart13	Read Replies (1) \| Respond to of 110194

What data source are you using for your corrected CPI? John Williams of shadowstats.com. CPI has understated inflation since the '80s, depending of course on one's definition of inflation. That inflation bubble chart is nowhere near real world in my opinion. They follow, they don't lead. The Fed's SecLend operations lead.

To: GraceZ who wrote (78119)	1/26/2007 1:55:17 PM
From: ahhaha	Respond to of 110194

CPI overstates inflation. The Cleveland Fed publishes a CPI that accurately represents the roc of GPL. The correlation between that CPI and say, the one of BLS, is .99. It's a difference that doesn't make a difference. Any claim that someone's CPI overstates or understates is trivial. One can see that by comparing the implied inflation rate with it. Define "implied inflation rate". CPI is a measure of some adjusted roc of GPL. The importance does not lie in the degree of divergence between various CPIs and some "true" absolute measure of roc of GPL, but in the persisting change in trend of all of them. Change of trend is proportional to roroc of GPL. GPL has been rising for 70 years. GPL rises even during the worst of times. What I'd like to see is a measure of the ability to adapt to roc of GPL. It is well known that on average it isn't possible to adapt to roroc of GPL.