Gold. GOLD!!!!! Gooooollllllllllddddddd!!!!!!!!
- Thread starter ChesusRice
- Start date
UncleBuck
Well-Known Member
Wasn't that you that posted a pretty picture of things and was titled "WHAT INFLATION?" then goes on to say that its prices were adjusted for inflation.
Your retort about the price of milk being the same as it was 8 years ago.
Blah
Blah
Blah
I don't think I am getting whinier, I just think you fail to see the error of your logic.
Prices aren't going up!
Of course we have inflation!!!
Define inflation: The general rise in prices.
Prices adjusted for 2010 inflation.LOL you can't beat that.
UncleBuck
Well-Known Member
i posted a graphic in response to muyloco's retarded assertion that "nothing" has gone down in price.
milk being about the same price as it was 98 months ago was to illustrate that inflation is not as bad as some people wish to describe it as.
you may not think you are getting whinier, and you may be right. there's a very good chance you were this whiny all along and i just didn't notice.
And according to the graphic you presented, nothing has gone down in price, if it had it would not have been adjusted for inflation.
Know what the price of filet mignon is according to the Fed?
The same price as hamburger.
Welcome to the world of heuristics, maybe you heard of it if you were awake in Stats.
Food and Energy only account for 23% of the CPI and 0% of the Core CPI. Rents is more than 50% of the equation, of course as soon as housing gets going again, they will remove rents from the equation. Rents was not a part of the equation until 2009, because by that time rents were crashing so to disguise the printing of $85 billion a month as not inflationary, they come up with BS numbers to influence the average Joe into thinking everything is just perfectly fine, don't worry about monetizing $100 million dollars of debt per hour. The worlds largest economy is on the verge of total collapse with regions having unemployment levels of 30% and youth unemployment of 55%. Once they are on fire it will be our turn next. Wait for it, but don't blow smoke up my ass by trying to tell me that prices have not risen. Prices rise because the dollar loses purchasing power.
Thats funny that milk was the same price ($3.75) in 2005 as it was in 2013.
The milk I buy isn't cheap milk, I gotta pay over $4 for my milk.
In 2002, milk was $2.65
The price of milk rose by 71% in 3 years.
Must be the cow unions?
The BLS calculates a chained CPI, but that CPI isn't used for anything, and it's not the headline CPI. The Fed doesn't currently use any CPI in making policy.
Only 23%? Why are you alleging that weight is inaccurate for that category? I pose the same question for housing. What basis do you have for alleging that rents only became part of CPI in 2009? I haven't been able to find one that substantiates that claim.
heckler73
Well-Known Member
WRONG!
To begin, it must be stated unequivocally that the BLS does not assume that consumers substitute hamburger for steak. Neither the CPI-U, nor the CPI-W used for wage and benefit indexation, allows for substitution between steak and hamburger, which are in different CPI item categories. Instead, the BLS uses a formula that implicitly assumes a degree of substitution among the close substitutes within an item-area component of the index. As an example,consumers are assumed to respond to price variations among the different items found within the category apples in Chicago. Other examples are ground beef in Chicago, beefsteaks in Chicago, and eggs in Boston.
http://www.bls.gov/opub/mlr/2008/08/art1full.pdf
Heuristics? Perhaps you meant Hedonics?
UncleBuck
Well-Known Member
you live in some alternate reality.
my electric rates went down. that's a fact.
my housing market, like most in the nation, has allowed me to move onto a larger property for the same price as the smaller one. that's a fact.
the price of milk is about the same as it was 8 years ago. that's a fact.
the purchasing power of the dollar versus big macs was better in 2010 than it was in 2000. that's a fact.
much of what you said was false and likely plagiarized.
now put my cock in your mouth and start sucking.
UncleBuck
Well-Known Member
i don't even buy milk, but facts are facts.
the price of milk today is about the same as it was in 2005.
go cry now.
WRONG!!!
Heuristics is what I meant.
A heuristic is when the BLS assumes that people cannot afford steak so they substitute with Hamburger, or maybe the worst steak cuts you can buy, which is what hamburger is made of, an approach to make doing the statistics easier, a shortcut if you will and one which does not coincide with reality.
They tell you right there that they substitute items of lower cost , but don't believe your own evidence.
The BLS is trying to play up the human behavior side of price increases instead of just relying on the actual price increases.
All one really needs to do is look at the price of gold, if gold is going up, inflation is going up. Gold has always been and always will be the barometer of the economy.
budsmoker87
New Member
as usual, nodrama is the beacon of truth and uncle buttfuck speaks out of his asshole
heckler73
Well-Known Member
From the earlier link and only a page later (which you seemingly failed to read):
Critics of the BLS often erroneously assert that reflecting substitution behavior in the CPI amounts to tracking a declining standard of living. Their argument can be summarized as follows: the BLS assumes that if steak becomes too expensive, consumers will shift to buying hamburger, so the CPI reflects a tradeoff of hamburger for steak, not steak for steak. The trouble is that that logic fails to recognize the point made at the beginning of this section: that the BLS employs the geometric mean formula only within basic CPIs, such as the index for ground beef in Chicago. Still, despite the fact that it is wrong, the idea that the CPIs use of the geometric mean reflects substitution between hamburger and steak has attained the status of a sort of urban legend, repeated by numerous bloggers and commentators.
...
In addition, the critics argument takes as its premise that steak, the more desirable product, is getting too expensive. As has been noted, the CPIs assumption about substitution is that consumers shift their purchases toward items whose prices are rising less (or falling more), not necessarily toward less desirable goods. For example, within the CPI category ice cream and related products, the assumption is that if the price of premium ice cream falls relative to the prices of cheaper store brands, consumers will shift toward the premium brands. Within the beefsteak category, the CPI implicitly assumes that, on average, consumers would shift up from flank steak toward filet mignon if flank steak prices rose by a greater amount (or fell by a lesser amount) than filet mignon prices. If all prices change proportionately, then no substitution is assumed. So, if, for example, a rising cost of beef caused filet mignon and flank steak prices both to increase by 10 percent, the geometric mean formula would not assume any substitution toward flank steak
Take the time to read the material and use the tools I provided, THEN come back and start digging away. I am not amused with having to spoon-feed you (educating stereotypically lazy stoners carries a large opportunity cost).
There is a good reason they stopped using Laspeyres (an arithmetic mean) in favour of the Geometric. Use your academic prowess to see if you can find out why.
And we haven't even remotely approached the topic of BPP vs CPI yet, which REALLY unsettles your peers' misconceptions about the accuracy of the measure (which further addresses your petulant lament regarding "actual price increases").
Your move, smarty. Try to choose your point of contention more wisely this time.
You know what I was saying about going from Filet Mignon to Flank steak?
What do ya know, thats exactly how they do it.
Know what kind of meat makes up a McDonalds hamburger????
100% Flanksteak there buddy. http://en.wikipedia.org/wiki/Flank_steak
They got lots of people bamboozled, don't feel bad that you are one of them.
londonfog
Well-Known Member
what about that Angus burger ??
You must be high. NoDrama has done but nothing but spout outright falsehoods and contradictions in this thread. Everything substantive is ignored because it cannot possibly be refuted, since it's the truth.
Many of these economic thinkers railing against the heterodox ways seem rather ignorant of some basic economic concepts. They embrace the views of a tiny minority because those views reflect their own personal beliefs and desires, not because they're realistic and empirically tested.
This is the assumption of the CPI figures.
If the price of a new Chevy Truck increases by 3% over last year, and the Ferrari goes down in price by 2%, you will buy the Ferrari.
Flank Steak = $2.89 a pound.( the best flank steak in the world costs $3 a pound)
Filet Mignon $30 a pound ( for shitty Filet Mignon, the good stuff is $300 a pound)
They got you to think that if the price of filet Mignon goes from $30 a pound to $32 a pound ( a 7% increase) and the price of Flank goes from $2.89 a pound to $4 a pound ( a 72% increase) that you will instead by the Filet Mignon.
HHAHAHAHAHHAHAHAHAH
Balls in your court.
If the price of a new Chevy Truck increases by 3% over last year, and the Ferrari goes down in price by 2%, you will buy the Ferrari.
Flank Steak = $2.89 a pound.( the best flank steak in the world costs $3 a pound)
Filet Mignon $30 a pound ( for shitty Filet Mignon, the good stuff is $300 a pound)
They got you to think that if the price of filet Mignon goes from $30 a pound to $32 a pound ( a 7% increase) and the price of Flank goes from $2.89 a pound to $4 a pound ( a 72% increase) that you will instead by the Filet Mignon.
HHAHAHAHAHHAHAHAHAH
Balls in your court.
I have a degree in finance, Graduated with honors, Summa Cum Laude. Member of Phi Beta Kappa.
I know more about broken economic theories and outright shams than you can shake a stick at. I can look at a Financial report and tell you whether or not that company will survive the next 3 years.
I made over a 1200% profit on average in the markets during the 2008-2009 crisis and my gold dollar value has multiplied by 500% and my silver by over 1000%.
What you got?
The substantiated has already been debunked by the very own authority you claim is telling the truth.
You think that's your money in that bank account? I know for a fact it is not.
Those things are awesome, I get a Frisco Burger at Hardees every time I go to town.
I found flank steak for $7.79/pound versus filet mignon for $13.99/pound on a supermarket web site. I can't find average national prices, but I'm guessing your numbers are way off.
As for flank steak being the McDonalds burger, I can't find any substantiation for that. The claim has been posted only in amateur places; the Wikipedia page claims that McDonalds UK used 100% "forequarter and flank" in its burgers, but the citation just leads to the McDonalds UK menu page, which says nothing about what the beef is.
I'm curious, doesn't your example of filet mignon versus flank steak suggest that CPI's substitution assumptions overstate inflation? I thought your thesis was that CPI understated inflation by hiding price increases that have eaten away at true purchasing power.