Quote:
Originally Posted by parsonsj
Correct: core inflation excludes food and energy because they have volatile price swings. For example, recent oil prices have trended considerably downward -- which would skew inflation numbers, and cause poor policy choices.
That's not to say the food and energy prices don't show up in the core: they do as they are assimilated into the greater economy. Just not their "retail" numbers.
Here's a look at core vs "headline" (which includes energy and food costs). Note how they are similar, but core is less volatile:
http://www.advisorperspectives.com/d...e-and-Core.php
You can see that trying to use headline vs core inflation as a way of saying that we do have high inflation is a red herring. |
The real red herring is that food and energy is excluded and the excuse because it's volatile? That goes for every other commodity. They're all "volatile". Try buying cotton, paper and ink. Should we exclude those too?
It's like real unemployment numbers are cooked too. It does not include workers that settle for part time, ones who's benefits expire or those who gave up and stopped looking. So yes, its true that official are deceptive.
Even the former Comptroller General agreed. David Walker admits the fudged numbers in all sorts of "official" areas. I just finished I.O.U.S.A and it 100% neutral. I'm going to keep recommending it until someone watches it.
BTW, they had to buy a new debt clock. The owners of it said so, since we broke the $9 trillion mark.
