Your View: How to Measure Inflation?

[Indiana Oracle]

Do you feel we are currently experiencing near zero inflation (CPI ~ 0)? Do you feel that it was 3.84% in 2008 and 2.85% in 2007?

Or do these numbers make more sense to you: 2007: 10.51; 2008: 11.57; 2009 (to date): ~7.5%?

The top numbers reflect changes introduced in the 1980s which many people feel, including me, falsely mislead the public and Fed policy. The second set are calculated by Shadow Stats and use the original calculations: Inflation, Money Supply, GDP, Unemployment and the Dollar - Alternate Data Series

Think Greenspan and Bernanke were not aware of what was changed in the 80s? Tends to shed a different light on Greenspan's malfeasance.

 

[neurosport]

my view:

total debt % increase divided by population % increase and productivity % increase

so we probably have something like 50% inflation per year ...

 

[Paulie]

If you want an accurate description of the skewed nature of CPI calculation, I suggest reading about the "Plutocratic Gap".

http://economicsbulletin.vanderbilt.edu/2002/volume4/EB-01D60003A.pdf

 

[mash107]

That's why bubbles form.

Look at all that money the Federal Reserve just thrusted into the housing market.