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O.K., it really didn't happen because you say so and this money really has no effect.
You must live on the other side of the looking glass. You have been claiming that there IS inflation, yet inflation is nearly non-existent by the numbers that measure inflation -- and you then claim others deny reality.
Truly fascinating.
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Originally Posted by pknopp
Obviously you have not been to the grocery store lately. If QE would stop the price of oil would collapse.
Other food prices aren't rising as high as they would because of other government subsidies to keep the prices down. Milk and sugar being just two.
All of a sudden huh? Milks and sugar are a tiny part of a family budget and represent a tiny part of the CPI.
I have been to the store. Some prices are higher -- and those are the ones you notice, while the ones that fall you ignore. That's why the government has the CPI, that measures the overall price changes of hundreds of items.
I am waiting for someone to post that the CPI is fudged.
You must live on the other side of the looking glass. You have been claiming that there IS inflation, yet inflation is nearly non-existent by the numbers that measure inflation -- and you then claim others deny reality.
We have done this many times. Inflation intentionally excludes the things going up. Yes, housing is still down which is a drag but the things the government refuses to count, utilities, food, etc are all going up.
If the CPI were still calculated as it was in the 1980s under Paul Volcker, it would show a very different picture of inflation than what is promulgated by Chairman Bernanke.
We have done this many times. Inflation intentionally excludes the things going up. Yes, housing is still down which is a drag but the things the government refuses to count, utilities, food, etc are all going up.
Housing is a large component of the CPI because a family spends 25% of its income on housing, so it rightfully should be a large component. Milk, at $4.00 represents a small part of a budget. At $4.00 a gallon, if a family used three gallons a week, is only $624 a year. It's clear that the weighting factors are appropriate.
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If the CPI were still calculated as it was in the 1980s under Paul Volcker, it would show a very different picture of inflation than what is promulgated by Chairman Bernanke.
Yeah, the basket has changed. We didn't spend money on cell phones, internet or computers, iPads and other things in the 1980s. But if you are trying to insinuate that the CPI is a sinister government conspiracy, other independent indices yield the same result.
Housing is a large component of the CPI because a family spends 25% of its income on housing, so it rightfully should be a large component. Milk, at $4.00 represents a small part of a budget. At $4.00 a gallon, if a family used three gallons a week, is only $624 a year. It's clear that the weighting factors are appropriate.
Which really has nothing to do with the government not counting food and utilities into their inflation numbers.
Putting trillions and trillions of dollars into the economy has no effect on prices? This is your position?
They are DOLLARS - not Euros. The fact that the US puts money out there doesn't change the number of Euros. Beef in Ireland is not priced in dollars. It's priced in Euros.
Inflation in Ireland is practically ZILCH - way lower than the US (which is itself pretty darned low by historical standards) - and yet BEEF prices are at record highs there - that says pretty clearly that the rise in beef prices has a LOT more to do with BEEF itself than with any bogus US inflation claims.
they are dollars - not euros. The fact that the us puts money out there doesn't change the number of euros. Beef in ireland is not priced in dollars. It's priced in euros.
Which really has nothing to do with the government not counting food and utilities into their inflation numbers.
The government uses two measures, CORE inflation, which measures long run inflation and excludes items frequently subject to volatile prices, like food and energy. Headline CPI includes those items.
One doesn't want to base monetary policy on items that fluctuate wildly.
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