tag:blogger.com,1999:blog-5776375569387669394.post3610297444871696280..comments2023-10-19T10:43:38.825-04:00Comments on Free Advice: Me, Inflation, and Crazy PillsBob Murphyhttp://www.blogger.com/profile/04001108408649311528noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5776375569387669394.post-36125213795753745812010-01-14T14:25:26.977-05:002010-01-14T14:25:26.977-05:00But keep in mind that this statistic is driven ent...<em>But keep in mind that this statistic is driven entirely by the fall in CPI from October through December 2008. </em><br /><br />It's driven by the SPIKE UP before the fall, not the fall. If prices were on average lower in 2008, the CPI would be up in 2009.Robert Wenzelhttps://www.blogger.com/profile/12653378186315529211noreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-90498195809278365842010-01-13T14:57:39.272-05:002010-01-13T14:57:39.272-05:00I think you are missing the fact that government e...I think you are missing the fact that government economists cannot count. I'm serious. They are doing this in every country. There was four months of what they call "deflation" (falling prices) namely september 2008 - january 2009, after that there was only increasing prices. If you remove the energy component from the US CPI (remember oil falling from waaaaaay up there to waaaaaaay down there?) there was in fact no month at all where prices where going down.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-73185304732232525492010-01-13T14:53:28.183-05:002010-01-13T14:53:28.183-05:00Bob,
You will be stunned, as I was, by how the BL...Bob,<br /><br />You will be stunned, as I was, by how the BLS calculates their <i>annual</i> CPI number, but it most likely will be down.<br /><br /><a rel="nofollow">http://tinyurl.com/ycgf8fj</a>Robert Wenzelhttps://www.blogger.com/profile/12653378186315529211noreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-23515336366610764762010-01-13T14:52:20.062-05:002010-01-13T14:52:20.062-05:00I don't even know why people even have to brin...I don't even know why people even have to bring up the 1970s for stagflation--look at virtually every third world country in the world right now. Double digit unemployment, double digit inflation. I can't possibly think of any reason why a serious person would even doubt unemployment-inflation duality.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5776375569387669394.post-65435106584863105722010-01-13T14:16:42.220-05:002010-01-13T14:16:42.220-05:00I think you're right.
In the case of the typi...I think you're right.<br /><br />In the case of the typical mainstream economists and financial commentators, they are persuaded that inflation is caused by economic growth (more jobs -> more money), and that the recession causes deflation (less jobs -> less money).<br /><br />So they see what they want to believe is, rather than what is in fact.Marek K Nowakhttps://www.blogger.com/profile/13266994413723107589noreply@blogger.com