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Old 04-25-2017, 02:58 PM
 
33,031 posts, read 23,122,569 times
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Quote:
Originally Posted by SportyandMisty View Post
There. I fixed it for you.

Except that the terms of my rent serfdom do not permit me to add value to society in the most efficient way my skills allow.

Renting is where you pay a premium to enjoy temporary, impaired use of property.
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Old 04-26-2017, 08:17 AM
 
4,229 posts, read 2,298,923 times
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Quote:
Originally Posted by SportyandMisty View Post
Or, said differently, that their value-add to society is too low.
Might be true if some "invisible hand" existed to balance labor markets. But there is no such thing. All the power is on the corporate side of the table. Anyone should be able to see that.
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Old 04-26-2017, 08:24 AM
 
18,347 posts, read 16,300,603 times
Reputation: 7144
Quote:
Originally Posted by freemkt View Post
In this zoo, I do need to do food things in the kitchen if i am to avoid the ire of the person from whom I am renting. I could not do canning or similar foodie things in my room and get away with it. He just evicted someone else for doing no-nos in their room.

All that can be done outdoors. In the summer I can with a rocket stove made out of bricks and an old oven rack. You could have mason jars on a window ledge or under a bush. If you can't do that then your lot in life doesn't surprise me.
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Old 04-26-2017, 08:31 AM
 
4,229 posts, read 2,298,923 times
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Quote:
Originally Posted by lchoro View Post
When the BLS doesn't believe its eyes, it applies an approach called intervention analysis to fudge the numbers. It typically does this a lot for energy prices. If they can't fudge with real numbers, they create fake surveys like the OER survey or the auto survey. When the fudge gets ridiculous as in the hedonically adjusted numbers for computer and communications equipment, they reset the benchmarks so that their weight in the component list goes back up. Otherwise, the hedonic adjustments push down the cost of these categories to almost zero and would no longer have any effect on dampening the CPI. There are a lot of other tricks in the CPI, all skewed to lowering the result.
None of the above is remotely accurate. You have swallowed a total load of out-of-the-loop babble and manufactured nonsense. The fact that you personally do not have any understanding of hedonic measures or of the rather simple concepts underlying owner-equivalent rent (each of which is also used in GDP, by the way) does nothing to undermine the validity of these constructs. You need to get over yourself and your misguided faith in bogus heterodox sources.
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Old 04-26-2017, 10:54 AM
 
8,919 posts, read 7,889,811 times
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Owner-equivalent rent is a fictitious construct. The survey itself is designed in a manner to extract fictional information by querying owner-occupants of the rental value when the market value of rental properties is readily available from market-oriented private sources. There are other adjustments made to the OER after the data is collected to further reduce the value.

The fact that the cost index for goods with a heavy amount of hedonic adjustment have to be reset is an indictment of the technique itself. The weighting for the good in the consumer basket should be falling along with the cost. Many of these heavily adjusted cost categories have lost 99 percent of their initial value over time.

It's not a difficult task to examine the data on the BLS site if you have the analytical skills to do so.

You seem to have very little ability to argue your case as you always resort to claiming these facts are unfounded due to unseen sources or zerohedge.

Last edited by lchoro; 04-26-2017 at 11:03 AM..
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Old 04-26-2017, 11:11 AM
 
4,229 posts, read 2,298,923 times
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FYI, I have 45+ years of high-end professional experience in this field. In my world, your claims are nothing but laughable dalliances from la-la-land.
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Old 04-26-2017, 11:58 AM
 
8,919 posts, read 7,889,811 times
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I haven't been impressed so far. I still don't see anything in what you've written that shows you have professional observations of the economic events that goes back more than 10 years.
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Old 04-26-2017, 01:26 PM
 
4,229 posts, read 2,298,923 times
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I don't post to impress people. I post to inform them. Some are less susceptible to that than others. The quicker ones in the bunch will have easily taken the point that your characterizations of national statistical agencies and their reports are a load of absolute rot.
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Old 04-26-2017, 02:22 PM
 
8,919 posts, read 7,889,811 times
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My criticisms of the techniques aren't that different from what were said about the CPI 20 years when the Boskin report came out. Your comments generally aren't informative either. You can usually find people on one side or the other on the CPI issue and it often comes down to politics. The plan to change the index was after all a politically motivated one since there was no interest in raising taxes or cutting expenditures outside of Social Security and Medicare. There've been attempts to create alternatives to the CPI in private industry.
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Old 04-26-2017, 02:45 PM
 
Location: Myrtle Creek, Oregon
13,596 posts, read 13,485,842 times
Reputation: 22025
Quote:
Originally Posted by Dandelion Garden View Post
Food prices are totally insane. We spend as much on groceries for four people as the mortgage on a five-bedroom house (no, I am NOT including eating out or take out in that). Literally the housing payment is $950 and groceries range from $850-$1,000 depending on the month. Of course, despite being in a generally mid-range COL area, my food prices are much closer to Hemlock's outside SF than mizzourah's. At least, milk is $2.99-$3.99/gallon depending on where you shop and which brand you get. I guess if I could get milk for $1.04 a gallon (and other stuff at equivalently a third the cost I actually pay) then maybe my grocery bill could be as low as some have posted on this thread, but seeing as no such prices EXIST here, that's not exactly a viable plan.

It's actually extremely frustrating because I have all the other bills at basically their 1970s equivalent level. We paid $129k for our house, only about $10k more than the adjusted average price in the OP's post, and I'm sure the lower interest rates make up for that difference. I only buy used cars for cash and have never sold or junked a car (still driving what I got at 16, though I've bought a second as well), nor paid more than half of that $12k adjusted price, which probably makes up for needing to pay for cell phones, internet, and cable which didn't exist back then (services I also have at a reasonable cost).

But there's just no controlling the grocery bill, it seems. I've wasted hours looking at online guides to shopping frugally, but we already do a lot of it and the rest we either can't do (we don't have a Costco near us or a chest freezer to buy perishables in bulk) or aren't willing to do (I'm not soaking beans for 24 hours, especially since they always turn out gross anyway, or drinking nothing but water).
Have you looked into mail order? Does Walmart in your area have higher than national prices? In my area, Walmart is considered moderately expensive for groceries, but still better than what you are describing.
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