The Conservative Cave
Current Events => The DUmpster => Topic started by: franksolich on February 12, 2011, 11:55:10 AM
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http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x402896
Oh my.
cali (1000+ posts) Sat Feb-12-11 11:27 AM
THE BITTER OLD VERMONTESE CALI PRIMITIVE
Original message
Rotten to the core: Food and energy inflation cannot be ignored
PORT WASHINGTON, N.Y. (MarketWatch) — It’s time to look at all prices — including food and energy.
One of the biggest canards ever to be foisted on the American people is the notion that removing food and energy from the price indexes provides a clearer picture of inflation.
In reality, it’s just the opposite.
The so-called “core†rate of inflation (the headline price indexes minus food and energy) is grossly misleading. It was designed in the 1970s to take our eyes off what’s really happening to prices so the Federal Reserve could maintain an ultra-easy monetary policy.
Guess what? This is exactly what the Fed is using it for today.
Taking food and energy out of the price indexes was the brainstorm of the then-Fed chairman, Arthur Burns. He was looking for a rationale to keep policy easy in order to help Richard Nixon’s bid to be re-elected president, back in 1972.
Burns reasoned that no amount of money created by the Fed could produce one bushel of wheat or one barrel of oil. Their prices related mainly to such exogenous factors as the weather and geopolitics. As such, they have nothing to do with the state of the economy.
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http://www.marketwatch.com/story/inflation-numbers-are-...
Lindsay (1000+ posts) Sat Feb-12-11 11:31 AM
Response to Original message
1. This is one of the most appalling ways our government lies to us consistently.
And who's right now in charge of our government?
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Just wait until your boy Obama gets his energy regulations and taxes through.
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http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x402896
Oh my.
And who's right now in charge of our government?
King Obama's plan for America.
1-Run up massive debt we can't pay.
2-break country.
3-install socialism/communism.
4-inflat prices until everyone is broke/penniless.
5-use deflated dollars to pay debt.
6-kill useful idiots....may come before #5 or anytime after #3 because DUmmies are already broke..