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| Economy |
| Inflation Actually Near 10% Using Older Measure |
| 2011-04-13 |
| After former Federal Reserve Chairman Paul Volcker was appointed in 1979, the consumer price index surged into the double digits, causing the now revered Fed Chief to double the benchmark interest rate in order to break the back of inflation. Using the methodology in place at that time puts the CPI back near those levels. Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter. Since 1980, the Bureau of Labor Statistics has changed the way it calculates the CPI in order to account for the substitution of products, improvements in quality (i.e. iPad 2 costing the same as original iPad) ['I Can't Eat an iPad'] and other things. Backing out more methods implemented in 1990 by the BLS still puts inflation at a 5.5 percent rate and getting worse, according to the calculations by the newsletterÂ’s web site, Shadowstats.com. |
| Posted by:Zebulon Thranter9685 |
| #5 Three accountants apply for a job at OMB*. The interviewer asks the applicants 'what is 2 plus 2'. The first replies '4'. The second replies '4'. The third replies 'What do you want it to be?'. Of course they hired the third applicant. * Office of Management and Budget |
| Posted by: Procopius2k 2011-04-13 20:42 |
| #4 If the goal is to impoverish Americans, this administration is doing a heckuva job. |
| Posted by: Jock the Salmon 2011-04-13 20:29 |
| #3 Bernanke and the other central banks are fighting the 'problem' of asset deflation crashing the banks. |
| Posted by: phil_b 2011-04-13 20:27 |
| #2 Thanks Bernanke for fighting the terrible problem of things getting cheaper in a recession! We now still have a recession except everything costs even more! |
| Posted by: Bright Pebbles 2011-04-13 18:44 |
| #1 I just can't believe inflation is that low. This current climate reminds me of the Carter years. Then we had double digit inflation. The problem is this simply. Every time you order product for resale you have a cost increase. Profit is gone and you don't recover your money spent. Inventory now takes all your money to stock. When you pay your bills is when you wonder where the money went. Sounds like the song- wonder where the money went. |
| Posted by: Dale 2011-04-13 17:15 |