PDA

View Full Version : Economics Eventually there will be no reported inflation...


Stewie
06-22-2011, 02:58 PM
Change To Inflation Measurement On Table As Part Of Budget Talks -Aides



By Corey Boles and Janet Hook


WASHINGTON -(Dow Jones)- Lawmakers are considering changing how the Consumer Price Index is calculated, a move that could save perhaps $220 billion and represent significant progress in the ongoing federal debt ceiling and deficit reduction talks.


According to congressional aides familiar with the discussions, the proposal would shift how the Consumer Price Index is calculated to reflect how people tend to change spending patterns when prices increase. For example, consumers tend to drive less when gas prices increase dramatically.


Such a move is widely seen by economists as resulting in a slower rise in inflation. That would impact an array of federal programs that are linked to CPI including the Social Security program and income tax brackets set by the federal government.


The proposal could lower federal spending by around $220 billion over the next decade, based on calculations by last year's White House deficit commission, which recommended the change as part of its final report.
According to two congressional aides familiar with the budget negotiations, the shift is being "seriously discussed" as part of the ongoing talks to strike a budget deal, that would be used to ease the passage of a required increase in the country's debt limit.


http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201106211841dowjonesdjonline000414&title=change-to-inflation-measurement-on-table-as-part-of-budget-talksaides

BucEyedPea
06-22-2011, 03:03 PM
I think it's funny how they can say this would mean a slower rise for inflation. I mean, really, they're just calling it something else to cover their arses. People are gonna still observe and know what's happening to them. Of course, elitists who try to pull the wool over our eyes, will call such observations, experience and ability to know "anecdotal." They must think every is stupid! This nothing but verbal sleight of hand. The CPI has been changed before when politicians arses are on the line.

ClevelandBronco
06-22-2011, 03:04 PM
That makes sense. For instance, I no longer buy food.

Simplex3
06-22-2011, 03:08 PM
So our solution to the budget crisis is to calculate the numbers differently so that we can not pay people what they would otherwise be owed instead of just being up front about it and changing the law.

Most transparent administration ever.

FD
06-22-2011, 03:10 PM
This is an interesting proposal. Economists have known for a long time that the CPI overstates the rate of inflation in the long run, but the staff of the BLS have been working to correct this. I think its a task best left to them, a staff of career professional economists and not to Congress, so I'm skeptical but I'd have to see the details. It also seems like it would be easier for Congress to just tie benefits to a different index than to try to alter the current one.

Saul Good
06-22-2011, 03:12 PM
I think it's funny how they can say this would mean a slower rise for inflation. I mean, really, they're just calling it something else to cover their arses. People are gonna still observe and know what's happening to them. Of course, elitists who try to pull the wool over our eyes, will call such observations, experience and ability to know "anecdotal." They must think every is stupid! This nothing but verbal sleight of hand. The CPI has been changed before when politicians arses are on the line.

You're missing the point.

vailpass
06-22-2011, 03:13 PM
"And if all others accepted the lie which the Party imposed-if all records told the same tale-then the lie passed into history and became truth. 'Who controls the past' ran the Party slogan, 'controls the future: who controls the present controls the past.'"

Saul Good
06-22-2011, 03:13 PM
So our solution to the budget crisis is to calculate the numbers differently so that we can not pay people what they would otherwise be owed instead of just being up front about it and changing the law.

Most transparent administration ever.

You're nailing the point.

Calcountry
06-22-2011, 03:17 PM
"And if all others accepted the lie which the Party imposed-if all records told the same tale-then the lie passed into history and became truth. 'Who controls the past' ran the Party slogan, 'controls the future: who controls the present controls the past.'"Wow, sounds like Marx or Lenin or something like that???

Calcountry
06-22-2011, 03:18 PM
Wow, sounds like Marx or Lenin or something like that???It was George Orwell.

BucEyedPea
06-22-2011, 03:31 PM
This is an interesting proposal. Economists have known for a long time that the CPI overstates the rate of inflation in the long run, but the staff of the BLS have been working to MANIPULATE this as usual. I think its a task best left to them, a staff of career professional economists and not to Congress, so I'm skeptical but I'd have to see the details. It also seems like it would be easier for Congress to just tie benefits to a different index than to try to alter the current one.
FYP

Please don't generalize about "Economists" because it is NOT all economists. There are enough that don't feel the CPI overstates it. Some say it's understated and enough know that changing how it's calculated has been done before when the bad effects of govt policy make politicians look bad.

I think it's a task best left not to govt bureaucrats and elitists who depend on govt money or have a vested interest in the game that's being played. It's actually not to hard for the average person to figure it out by saving receipts and comparing from month to month. However, they are usually just approximations. You, unfortunately, are listening to liars and gullibly believing them.

BucEyedPea
06-22-2011, 03:32 PM
You're missing the point.

How so?

vailpass
06-22-2011, 03:36 PM
It was George Orwell.

It seemed to fit :shrug:

HonestChieffan
06-22-2011, 03:42 PM
This is an interesting proposal. Economists have known for a long time that the CPI overstates the rate of inflation in the long run, but the staff of the BLS have been working to correct this. I think its a task best left to them, a staff of career professional economists and not to Congress, so I'm skeptical but I'd have to see the details. It also seems like it would be easier for Congress to just tie benefits to a different index than to try to alter the current one.

Politicians change the formula to reflect a desired outcome. Economists who are not politicians don't. You are taking the bait like a 10 pound channel cat. Economists with a mission are no less worthless than phony politicians

BucEyedPea
06-22-2011, 04:01 PM
It seemed to fit :shrug:

It fits perfectly!

petegz28
06-22-2011, 05:44 PM
<iframe width="425" height="349" src="http://www.youtube.com/embed/tie6YqA1930" frameborder="0" allowfullscreen></iframe>

petegz28
06-22-2011, 05:45 PM
<iframe width="560" height="349" src="http://www.youtube.com/embed/VL7V9BnJXO8" frameborder="0" allowfullscreen></iframe>