It all began before the Civil War

It's a metric. It does a fine job of hiding the worst ravages of inflation and gets the boobus Americanus to continually vote for more of it. So yeah, it's probably working too. The question is, for whom is it working?

 

You are the one who brought up "poverty of money" as if there is some objective measure we an use to determine the optimal amount of money in an economy. I merely asked what that measure might be and now you become vague and difficult.

 

Ask the people who, during the course of a year, see their wages effectively lose 5-10% in purchasing power before they might, if they are fortunate, see a raise to catch up with what was lost.

The evil of inflation is not just the loss of purchasing power over time, but that it erodes the paychecks of workers and pensioners constantly so that the government and it's beneficiaries might have more cash to spend without direct taxation.

 

I agree to disagree that our Founding Fathers specifically enumerated a States' right to coin their own commodity money for the purposes you describe. The power to pay the debts of the several United States could probably do what you claim even without that power being reserved to the several States.

 

Do you believe gold or silver would be better? The CPI may not be perfect but it is more comprehensive than any single commodity.

 

It depends on the subjective value of morals.

 

I am not sure why you believe our current low rate of inflation is doing what you suggest. In 2009, we even had a negative rate of inflation.

What you claim has more to do with energy prices which respond to military conflict in the Middle East; so, from that perspective, it is not inflation per se that is the problem but mediocre public policy choices of last millennium, which have been proved to not work any better in a new millennium.

 

That's like arguing that Stalinism isn't perfect, but it's far more comprehensive than two people arguing in a town square. "Comprehensive", for government, usually means bureaucratic, expensive, and purposely obfuscated such that any measures can be used to justify more intervention or to make politicians look good.

It might be better to go back to earlier measures (1990 or 1980). Even though they were were designed to obfuscate, they weren't as obfuscating. There wasn't product substitution (the assumption that people will buy cheaper alternatives), geometric weighting, and hedonics.

 

Sure it does.

 

You make it seem like gold could not be manipulated in any market.

 

I don't mind subscribing the official weights and measures already promulgated by the federal government, merely for the sake of argument.

Source: http://aspe.hhs.gov/poverty/12poverty.shtml

 

Rises in energy prices aren't the cause of inflation.

 

They must be one component of inflation if the price of fuel is rising faster than a CPI.

 

Quantify tht into a economics debate with out fancy charts an graphs

Elaborate further please

Fiat floating currencies hid the usual effects of monies confiscated from
the ruling elite

They merely print,use,reprint,use, cycle repeat
with the effect of improving the ails of the problem

The solution furthermore enhances the problem
insttead of ridding the peoples of the cause an effect scenario

It is compounding of the problem

Remember the ol saying

If you do something a repeated amount of times an
expect a different result

Well its quit possible the defenition of insanity

 

I disagree when the masters who use the mentioned metrix
don't use the same one each time

Pls listen when the price of commodity A is rising from said
facts of inflation .

They simply quit using that factor an that has been proven fact as too
the. Current system in debate here.

You can't move the field goal when you want too
and expect worse results

Your rigging the game too your determine outcome

 

I agree too a point ....hedgefunds and speculative futures/derivatives betting
on the market has had some serious effects

Some hedging an futures are valid market principles an activities
tho when it turns into a game of musical chairs

Like in 2008 during bush 43 stint of potus
it becomes clear the market is doing

Wjat caused the collase like in the great depression

Busy bodies running up markets hoping some other sucker
is left holding the bag

While thye never intend 2 take possesion. Of said commodity/property/bet
and make a bet or hedge an take out a insurance stake

Into the said betts they have made is this sounding familiar

 

The point was that a single commodity out performing an inflation index can be said to contribute to inflation by any increase in prices of "downstream" or dependent products and services. Fuel prices on transportation costs is one example.

 

Dude I can't believe that statement .....really!!!,

You have a quote from the austrian school of economics

And you can't figure out the vast majority of the reason

For energy price increases isn't from inflation seriously

 

Google cpi calculator and do some figuring in reverse on that website

 

Possible tho our true problem in this country is inflation has started too rear its head

It ain't completely outta the bottle

And once it gets out ....forget about it its too late then

The only reason it hasn't gone up bigg time

Is because of the Fed

An tht is why our money can't buy chit no more

 

Inflation is defined as a general increase in prices due to an increase in the money supply. Given a fixed supply of money, an increase in the price in any particular commodity may see all things related to the use of that commodity go up in price, but consumers, in response, will cut back on items that they put as lower priority. Those items will decrease in price as demand goes down for them. Therefore, it's not a general increase in prices which you describe, but a specific one. It's sometimes described as "cost push inflation."

 

Some prices going up is not inflation. Speculation may create the appearance of an increase in costs, but speculators look at the future, and by bringing prices into line with an expected decrease in supply or other issues, they smooth out the price spikes that would be created by sudden, unexpected disruptions in the market. You should be glad that speculators do what they do.

It's the same with derivatives trading. The purpose is to spread out risk, thus making investment more safe for investors. Problem is when government creates a cheap supply of credit on one hand, and then subsidizes the risk on the other. Such intervention creates a great deal of malinvestment.

 

http://mises.org/daily/2914

I didn't say that energy prices increases aren't a result of inflation. I said that energy price increases are *not the cause* of inflation.

 

Okay then I stand corrected...fair enough

I do believe futures is. A valid market purpose....tho with. The mega banker hedgefunds

They are merely playing musical chairs like in I 2008

Tho not quit too that level

They have switched from the housing shell game

Too the oil/petro markets

 

Why do some indicators suggest we are emerging from a recession?