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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: Threshold who wrote (77539)	5/9/2008 7:55:32 AM
From: Crimson Ghost	Read Replies (3) \| Respond to of 89467

Excellent post! My only point of disagreement is your assertion that the financial establishment really thinks the CPI numbers are accurate. These guys are not idiots and I am sure most of them realize the CPI numbers are a bunch of bull. But they PRETEND to believe because that helps keep rates low which in turn tends to prop various bubbles.

To: Threshold who wrote (77539)	5/9/2008 12:46:33 PM
From: LTK007	Respond to of 89467

<<Some of these CPI ingredients -- product substitution weightings, "hedonics" (price reductions for added product quality or satisfaction), and use of owner's equivalent rent (instead of home ownership costs) -- have a comic aspect suitable But in a larger sense, they're not remotely funny. That's because the federal minimalization and misrepresentation of inflation, pursued statistically over the last 25 years, has been the main buttress of Washington's over-favorable and self-serving portraiture of the U.S. economy.>> At some point the a quite significant majority of the public will have to have sink in that they are being lied to in the cruelest of manipulations, and have been for years. That, U.S.Government, is trying to GASLIGHT the public into thinking they are "crazy" about thinking there is rising and rising inflation by coldly(scornful of the public intelligence) lying with saying that is no such major inflation in play. All con games i believe in the end have a bad ending. One of these days the public is going to get angry. Dr.Marc Faber has pegged U.S. inflation now between 10% to 15%,fwiw. <<but U.S. money managers take comfort in the Efficient Market Hypothesis and in the wisdom and sanctity of the CPI.>> This hypothesis that got drummed into money managers minds from the academics at Chicago University , has one problem, it is absurdly wrong, it is simply not true. Joseph Stiglitz got a Nobel Prize for attacking the efficient market hypothesis as being farce. Unfortunately this has not caught to the many bozos that still believe the markets are efficient. Cripes, i would bet well over 70% of Money Managers have no idea who Joseph Stiglitz is.:( Max