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To: Real Man who wrote (344902)	10/4/2007 8:54:15 AM
From: Giordano Bruno	Read Replies (1) \| Respond to of 436258

Somehow, the government’s tally of the Consumer Price Index (CPI) shows an annual gain of just 1.97% through August, despite a $20 climb in the price of crude oil. We don’t get it. Something does not compute. As default and foreclosure rates attest to, interest rate costs for homeowners increased dramatically in 2007. The price of gas is higher. Rents have risen. The senior year of university tuition for your Editor’s son costs 7% more than his junior year. What doesn’t cost a lot more? Is it reasonable to conclude that consumer inflation rose less than 2% because computers are a bit cheaper this year than last or because a 4-gigabyte flash drive is down from $169 to $69? Clearly, oil should be a huge factor in cost increases but does not appear to be included in the computation. How strange. On an inflation adjusted basis, crude has made a new all-time high, yet in 1981, when crude was then trading at a record high, inflation ranged through the year from 11.8% in January to 8.9% in December. We’re not sure how much longer the Bureau of Labor Statistics can keep up the illusion of low inflation, but when gas finally hits $4 per gallon, we believe reality will overtake the notion that all is well. decisionpoint.com