Wednesday, May 19, 2010

Cleveland Fed Video on Inflation



Median CPI on the Drawing Board: Really bad drawings…real simple explanations.

10 Comments:

At 5/19/2010 12:47 PM, Anonymous geoih said...

Simple explanations for irrelevant aggregates from incorrect theories.

He states right in the video that they can't tell the difference between a price increase due to changes in supply and demand, and changes due to inflation. Then they arbitrarily select the specific prices they measure, arbitrarily weight them, and arbitrarily aggregate them. How absurd (I mean scientific).

Here's a simpler measure of inflation: the money supply created by the Fed, minus the money supply destroyed by the Fed. Since the second number is never positive, that makes it even easier.

 
At 5/19/2010 1:28 PM, Blogger bob wright said...

geoih:
Do you have a link for the Fed table showing the historical data for this measure?

 
At 5/19/2010 1:32 PM, Blogger Ron H. said...

>...can't tell the difference between a price increase due to changes in supply and demand, and changes due to inflation.

A change in price due to inflation IS a change due to supply and demand. If the supply of dollars increases, the price paid for each dollar is likely to drop.

 
At 5/19/2010 3:21 PM, Blogger Benjamin said...

Jimmy Hoffa is dead.
Inflation is dead.

Next topic.

 
At 5/19/2010 3:31 PM, Blogger Methinks said...

Where are the VIX posts now that the VIX is up?

 
At 5/19/2010 4:40 PM, Anonymous Anonymous said...

speaking of all things cleveland, i wonder how their economy will fare once lebron james leave.

 
At 5/20/2010 6:00 AM, Anonymous geoih said...

Quote from Benjamin: "Inflation is dead."

Perhaps you could give us your predictions about the probablility of future wars, famines and plagues as well.

 
At 5/20/2010 6:51 AM, Blogger bob wright said...

Speaking of all things Cleveland, there are 6 Lebron trades right now on Intrade.

Top bid: 35 - Lebron stays in Cleveland.

Second highest bid: 30 - Lebron goes to Chicago.

 
At 5/20/2010 8:29 AM, Anonymous Anonymous said...

Inflation? Deflation? Who knows. After 10 years of marginal returns on 401k's, IRAs, etc. I've had it. So here's the deal. My 401k is now all in money market. If deflation, I don't lose money. If inflation, the money market goes up. I preserve capital. And I'll retain the first 5 years (I hope) of retirement cash I'll need. Same for one Roth IRA. The other 50% of the portfolio remains at the whim of this "market." God, I hate what our gov't. is doing to the markets. And screw Europe and "global diversification." I say preserve the cash.

 
At 5/20/2010 3:58 PM, Blogger grant said...

Geoih: your comment wars:- Why not forget them and instead put some of the cost into grants to develop technology for new products?

 

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