Discussion in 'Economy' started by Neubarth, Jan 20, 2010.
Core PPI for Dec 0.0%
So the economy is pretty much in a holding patten.
Deflation means it is going down and inflation means the economy is risinig.
I always get confused by what statistics Neubarth will accept or not accept. He rejects BLS labor force statistics as phoney an denies there's even a survey, but he doesn't seem to have a problem with the PPI or CPI, even with seasonal adjustment, which he rejects for UI claims. It's fascinating.
The "core" number is a BS number as it strips out things like energy and housing that people actually buy every day.
That said, there is no inflation, despite all predictions. I don't think that we will be unique in having huge money creation not followed by inflation. But I dont see it yet.
The PPI is the Producer Price Index...it's not what people buy every day, but what stores and manufacturers buy. So housing's not a part of it anyway either. The core PPI is officially called "Finished Goods less food and energy."
This might be one of the dumbest things I've ever read.
What is PPI?
Do manufactured products used in housing construction figure into the PPI?
It's the Producer Price Index: an index of price changes for wholesale goods..The 3 main indexes are Crude Goods (raw materials like logs, minerals and mineral ore, raw cotton, etc), Intermediate Goods (construction materials, raw foods wholesale prices, clothing material etc) and the main one usually mentioned as just "PPI" is Finished goods...everything bought by retail stores for sale, but also office equipment (wholesale prices), factory machines, etc.
This is opposed to the CPI, Consumer Price Index, which measures changes of consumer goods.
Separate names with a comma.