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Inflation Actually Near 10% Using Older Measure

Discussion in 'Political Discussion' started by Real World, Apr 14, 2011.

  1. Real World

    Real World Moderator Staff Member

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    It's amazing to me how the gubmit can create formula's on it's own and certify them as being both accurate and legitimate. I'm currently going through an abatement appeal with a city government over some commercial space, and in meeting with the assessor, he attempted to explain the "formula" they use to calculate property "value". It was anything but a formula, as it was entirely subjective. At any rate...

    Inflation Actually Near 10% Using Older Measure

    Published: Tuesday, 12 Apr 2011 | 5:18 PM ET Text Size By: John Melloy
    Executive Producer, Fast Money

    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) 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 newsletter’s web site, Shadowstats.com.




    News Headlines
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Same with the unemployment numbers. This is designed to get incumbents reelected. Wait till gas gets to %5 per gallon it will affect everything.
  3. Nikolai

    Nikolai Football Atheist PatsFans.com Supporter

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    #54 Jersey

    Yep, they've fudged with statistics quite a bit. Our unemployment rates would be double or worse according to the standards used during the Depression.

    All is well. All is well.
  4. Gainzo

    Gainzo Rookie

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    The formula was changed in 1980, but now you are complaining? That was 31 years ago.
  5. Nikolai

    Nikolai Football Atheist PatsFans.com Supporter

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    #54 Jersey

    How do you know he wasn't complaining all along? And if it's wrong, is there some sort of expiry date after which one can no longer complain?
  6. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    :rofl: .... Now that's epic delayed laughter ... good one. +1
  7. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey



    Complaining is the one thing this is as constant as death and taxes. ;)
  8. Gainzo

    Gainzo Rookie

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    I hadn't heard anything about this until Obama took office. The Republicans had the White House from 1980-1992 and 2000-2008. Why wasn't this issue mentioned before?
  9. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    The more money we print the higher the inflation rate. i don't know why administrations get blamed for inflation. They can help by spending less money of course but inflation is directly related to the money supply which is a fed issue. Other issues contribute of course but the money supply is a hug component and we have had the printers blazing. To discuss inflation we need to discuss the corruptness of the fed ... not that it would get us anywhere of course.
    Last edited: Apr 14, 2011
  10. patsfan13

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    If you are interested you can see the 'real' number on internet for the period from 1981 to the present. I am interested in the current number because we are being sold that the employment picture is improving a lot which is false.

    The inflation will also cause the FED to raise interest rates to fund our spending driving up the cost of goods and raising the amount of interest we pay servicing our debt which will do a LOT of damage to the economy.

    The politicians seem blissfully unaware of this or at least they won't speak about it to avoid panicking the rubes.


    National debt interest rates will take big chunk from budget - Feb. 2, 2011


    Last edited: Apr 14, 2011
  11. Gainzo

    Gainzo Rookie

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    What is the the "real" number? Doesn't the government use the people collecting unemployment benefits to calculate the unemployment rate?

    How did the Government do it before 1980?
  12. reflexblue

    reflexblue PatsFans.com Supporter PatsFans.com Supporter

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    #91 Jersey

    Yeah, just like all of a sudden the American People are concerned about government spending and the deficet. Never heard a peep when "W" added 3 trillion by giving the top couple of percent a tax break and started two wars without funding them. Two months after Obama was elected it all this caterwalling started about government spending being out of control.
    Last edited: Apr 14, 2011
  13. patsfan13

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    No if your benefits run out you are no longer counted they also don't count people who have stopped looking for work.

    The real rate of those un and underemployed (ie want full time work only have part time work) is ~16%.


    Hidden workforce challenges domestic economic recovery - The Washington Post
  14. Gainzo

    Gainzo Rookie

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    How do you count the "hidden workforce?" The article you posted doesn't mention anything about how they calculate that number.

  15. Wolfpack

    Wolfpack Banned

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    Heck, just look at the bogus Obama administartion "jobs saved" statistic. They simply pull out a number completely out of thin air, but when the crackhead himself says it in enough speeches, it easily fools the morons who voted for him.
    Last edited: Apr 14, 2011
  16. Nikolai

    Nikolai Football Atheist PatsFans.com Supporter

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    #54 Jersey

    Well, I guess we can just pass this off as a partisan issue, but a lot of Americans have been worried about debt, unemployment/underemployment, and these kinds of things for a long while. Personally, I never bought into the idea we had a boom during the middle part of this decade. We had two jobless recoveries during the first half of the last decade, and these funky unemployment numbers helped make things look just peachy under Bush. Even those numbers aren't so great now.

    Besides, I remember people were concerned about government spending under Bush. Maybe I hang around the wrong crowds? Or maybe people are having selective memories again?
  17. PatriotsReign

    PatriotsReign Rookie

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    Maybe, just maybe no one has complained because we haven't experienced significant inflation since the early 1980's...but I'm just speculating.:rolleyes:
  18. PatriotsReign

    PatriotsReign Rookie

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    Printing more money or increasing the money supply isn't always the cause of inflation. As a matter of fact, the Fed's QE1 & QE2 policies are not the sole cause of our current inflation. But it's probably the biggest causal factor.

    Inflation can be caused by increases in fuel prices, increased demand and even commodity speculation in the markets.

    If our gov't gave every household $20K, it may not result in any inflation at all because over 50% of Americans are in severe debt. If they take that money and pay down their debt, it will have zero affect upon inflation because that money would not go into circulation and become part of our money supply.

    What SUCKS the most is the fact that our gov't can make a decision (by a loser scum-bag like Bernanke) like quantitative easing and Americans just sit there and say "WTF?" Why do we tolerate such unacceptable actions from a branch of our gov't that is probably illegal?
  19. patsfan13

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    IIRC it is done by including those who say they want a full time job and don't have one, many are people whose unemployment benefits ended and they hadn't found a job.
  20. PatriotsReign

    PatriotsReign Rookie

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    I can't count the number of threads I've posted regarding our gov't LYING to us about our economy. Sadly, many here have stated that they're actually ok with being lied to because (now get this...) it may help the economy!!

    Imagine a populace that is stupid enough to believe that being lied to might help our economy....we've become a nation lacking common-sense.

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