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Moderate inflation is a normal part of a market economy. Deflation, on the other hand, is absolutely toxic. Bernanke has been careful to make sure we don't slip into deflation, a situation from which it is very difficult to emerge.
Yes, moderate inflation is preferable, and vastly so, to prices toeing the deflationary line. But it is clear you don't even comprehend even these rudimentary aspects of economics.
evidently, the geniuses here are the ones who WANT to pay more for the same goods so they must be extra smart.
fear has always been a good motivator for the clueless.
i see that they leave out whole groups in their inflation index:
The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents about 87 percent of the total U.S. population. It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. Not included in the CPI are the spending patterns of people living in rural nonmetropolitan areas, farm families, people in the Armed Forces, and those in institutions, such as prisons and mental hospitals.
so they don't even count 13% of the population-which is, as usual, more than a little dishonest. they have a whole qualifying section at BLS on how the changes don't mean or alter anything.
sure they don't.
after all, the research is from the federal reserve organization-and the bernanke just happens to be the head of it-so nothing to see, move along folks. I also see that the bernanke has said that he is "worried about the fiscal cliff".
i see that they leave out whole groups in their inflation index:
The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents about 87 percent of the total U.S. population. It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. Not included in the CPI are the spending patterns of people living in rural nonmetropolitan areas, farm families, people in the Armed Forces, and those in institutions, such as prisons and mental hospitals.
so they don't even count 13% of the population-which is, as usual, more than a little dishonest. they have a whole qualifying section at BLS on how the changes don't mean or alter anything.
sure they don't.
after all, the research is from the federal reserve organization-and the bernanke just happens to be the head of it-so nothing to see, move along folks. I also see that the bernanke has said that he is "worried about the fiscal cliff".
i bet.
Actually, the data is from the BLS, which the Fed has no control. But I do note a common argument of yours that corresponds to a common claim on the right, If facts disprove what you believe, attack the data as fudged.
As for the CPI, it is the standard measure of inflation and in this case, undercuts your claim of high inflation. If you have a better measure, I'm all ears.
Actually, the data is from the BLS, which the Fed has no control. But I do note a common argument of yours that corresponds to a common claim on the right, If facts disprove what you believe, attack the data as fudged.
As for the CPI, it is the standard measure of inflation and in this case, undercuts your claim of high inflation. If you have a better measure, I'm all ears.
we can have this back and forth conversation all you want, but people know that they are paying way more for their goods/healthcare/energy than the "official" inflation rate.
i was going to type a long piece but figured i don't care enough about this argument to do that, so i will post part of a denninger piece from a while ago:
Bloomberg, like the rest of the media and Bernanke himself, love to cite "core" inflation as well. But you don't live in a "core" world; you consume both food and energy. The CPI index says that for a "median" family about 15% of your budget will go to "food and beverages", with 7.8% of it being "food at home." For a median income of $50,000 this is $3,900 a year, or $325 a month. I can buy that number.
But what's it look like if you're making $12/hour and have $24,000 a year in income -- over the poverty line, but rather typical of "modern" blue collar wages? Is it still 7.8% of your budget or is it much higher? Of course it's much higher.
This is very important because all food at home went up 6% last year. Over ten years this is an inflation rate of 79% and over a working man's 45 years in the workforce it's a total inflation of nearly 1,300%!
This is "stable prices"?
Motor fuel (for your car) was up 10.3% over the last year. Don't run that number out 45 years. Just don't.
I dont understand why libertarians complain about the federal reserve. if you are concerned about inflation
you can just invest your money in gold or other commodities or you could buy inflation protected bonds.
I think a centerist libertarian party could do well,but they need to moderate their views.
Here are some examples.
accept the 1965 CRA, but support the rights of groups like the boys scouts and churches to discriminate as long as they are not subsidized by the government in anyway.
FDA-let people use non FDA drugs once they are deemed not to be toxic,so they dont have to wait
five years for clinical trials,also let people use any drug if their disease is fatal and they are not responding to current treatments. but dont abolish the FDA completely.
on the federal reserve find some alternative to the capital gains so people can save their money tax free protected from inflation.
on medicare and social security, allow a opt out or diversified investment plan,but keep the regular system for
those who wanted.
Im a centrist democrat and would oppose alot these ideas but they might sale in General election.
I dont understand why libertarians complain about the federal reserve. if you are concerned about inflation
you can just invest your money in gold or other commodities or you could buy inflation protected bonds.
I think a centerist libertarian party could do well,but they need to moderate their views.
Here are some examples.
accept the 1965 CRA, but support the rights of groups like the boys scouts and churches to discriminate as long as they are not subsidized by the government in anyway.
FDA-let people use non FDA drugs once they are deemed not to be toxic,so they dont have to wait
five years for clinical trials,also let people use any drug if their disease is fatal and they are not responding to current treatments. but dont abolish the FDA completely.
on the federal reserve find some alternative to the capital gains so people can save their money tax free protected from inflation.
on medicare and social security, allow a opt out or diversified investment plan,but keep the regular system for
those who wanted.
Im a centrist democrat and would oppose alot these ideas but they might sale in General election.
i seem to remember reading about a period of history when gold was confiscated.
tell me how you can save your "money" from this level of debasement, seriously?
The only truth is the ability of some to wear blinders while the economy collapses, our military personnel are killed while making us less safe, and making the latest generation being the first to have a bleaker outlook than their parents.
It's time you owned you failures. Its time to admit the mistakes of the past has caught up with we the people and destroyed prosperity. Anyone thinking doing more of the same though really isn't thinking clearly.
The problem is 19th century solutions can't solve 21st century problems and that's what Ron Paul had to offer America.
How many times did this guy run for President and how many times was he rejected?
Get over it. Ron Paul will go down as on the worst presidential campaigners in history.
tell me how you can save your "money" from this level of debasement, seriously?
What debasement are you talking about? The dollar is at the same price it was in 2009. Since the, the Fed has tripled the money supply without any debasement.
The question is in the current monetary policy environment why are you trying to save money?
The best way to increase your returns is to INVEST IT. The Dow and S&P 500 are both up well over 40% since 2009.
Don't blame the FED because you and others simply lack the skills, savvy or risk tolerance to seek out higher returns.
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