The US uses the Laspeyres method in its inflation calculations.This uses a broad basket of goods and services to give a balanced, meaningful comparison over time.
Its not a perfect system, nothing is, but the contents are periodically changed to reflect changing consumer habits.
The main fault with this system is that, because it includes new goods ( to replace old), and products where quality has improved (which usually cost more), it tends to over-estimate inflation slightly in comparison to other systems of measurement.
2 Likes
Didn’t I just see that written on the image you posted ?
C’mon man - Dennis is trying to engage you in this conversation. The least you can do is to put some effort into it !
1 Like
Carlos you are killing me, I could get these same answers form an automated government Q&A system. you are like a robot just repeating what the govenment has told you.
The government lies, why parrot those lies
1 Like
How The Fed Lost 9 Trillion Dollars
Dennis.
Until someone comes up with a better, more accurate measure, this is what we have.
I’m sure smarter people than you and I have tried to improve on this.
Anyhow, we are just going around in circles here. You have your opinion on inflation and I have mine. Time for a fresh topic, we might even find something we agree on.
The ticking time bomb is deflation - that’s was what the credit crunch threatened back 10 years - a threat that is still here but is lessening in recent months.
The CRB index is a good barometer of inflation/deflation pressure - this pressure is one of the catalysts for borrowing instead of austerity (austerity accelerated deflationary pressure with decreased consumer spending)
The UK post crunch adopted austerity - deflation was not then a threat for UK - but it became so as commodity prices continued to fall.
I see deflation a little differently than the rest of you guys, as there are two types of deflation, the ticking time bomb you refer too is when people just don’t have any money as was the case in the 1930s, there is little chance of that as the Fed will just keep printing. Then there is what I see as good deflation, this is brought about through technology and innovation, Henry Ford and his assembly line revolutionalize production and brought car prices down to what a middle-class family could afford, in this century it will be A.I. and BlockChain that will bring prices down.
The government with its 2% inflation target is actually working against innovation and causing price spikes in goods and services that do not innovate. You cannot deny ( unless your name is CarlosRay) that everything the government has its dirty fingers in is seeing inflation at 2 & 3 times the reported CPI # ( those being, Medical, Housing, Food, Education…etc) Space travel would have made this list before Elon Musk and SpaceX ( see how innovation works when the government is kept out)
Our current monetary policies date back to Jekyll Island and Bretton Wood, these policies are outdated and stand in the way of progress. Sooner or later deflationary innovation will hit Medical and Education and as with SpaceX, it will happen outside the control of the government. Then how will the government maintain its 2% inflation?
No Refunds !
Buyers Remorse Sets in because they didn’t read the label ! 
Popcorn Anyone ?
1455 Days now and you’re stuck with it !
Karma 
1 Like
The same way they always have ! - The same way they “control unemployment” - the same way the Global Warmists “report” temperatures !
They just “improve” the way the figures are “Calculated” !
As noted by Scruffy Carl ;
Wanna Buy a Bridge ? 
2 Likes
I don’t see what they are complaining about, they voted to get rid of Trump and that is what they got. Just like in 2016 I voted to prevent hillary from the White House and I got what I voted for. It ends there
Now if they were voting for an end to foreign wars then they voted for the wrong man.
We saw the same thing with obama, as he expanded Bush’s wars from 2 to 5, did not close Gitmo, and gave a bailout to banksters while foreclosing on 5 million families
Those 1455 days are going by slowly, it has not been in office for a week yet but it already seems like months, and maybe that is because 90% of what it is doing is just a continuation of Trump’s policies
I think I already offered you one, Housing , Education, Energy, Food and Medical, these are the core items we all must consume and should be the basis for what real inflation is.
I must disagree, these people are not smarter than you and me, they just have a different agenda.
I seem to remember this conversation being between Duck, peterma, and I, you jumped into the conversation and you are welcome to continue or get off the merry-go-round any time you please
I would love a fresh topic, please start one, but if you plan to continue defending government corruption then you may find yourself back on that same merry-go-round
1 Like
Someone must have pointed out to biden that he promised a $2000 check not a $600 check so now he wants to make up the difference with a $1400 check, regardless of your feelings about these stimulus measures one thing we should all agree on is it will have a negative effect on the US dollar and we should invest to profit from that
Side observation; all the msm’s are calling this “biden’s stimulus check” I don’t recall when President Trump back in November called for a $2000 stimulus check that the msm called it “Trump’s $2000 stimulus check”
Also pelosi opposed that stimulus checks all because it would have had President Trump’s name on it, do you think she will oppose biden putting his name on the check?
Other breaking news ignored by US media
This sure does sound a lot like what happened in DC a couple of weeks ago
![Screenshot 2021-01-26 at 10.51.22 AM|690x89]
(upload://xXMgdP9HII0t1EmlmjfDwo6VgSA.png)
1 Like
It began with an open statement Blackduck made and which I replied to, not that that matters anyway. Its an open forum and anyone can join in conversations or leave as and when they please.
I have no intention on defending any corruption. Just because you see the way successive governments in many nations measure inflation as corrupt does not make it so.
As a US citizen I am only calling out the corruption of my own government and have stated the evidence that drew me to that conclusion, Were you in this conversation from the beginning, I stand corrected.
You said you wanted to start a new conversation I was hoping that was going to be in this post , I eagerly await
1 Like
Do we have anyone here from India, I would like to get first-hand information on what is really going on with this protest
1 Like
Canadian lawmakers have voted to label the Proud Boys as a terrorist group
Anybody using the lower case as the first letter in ANYBODY’S name is displaying ignorance and intolerance befitting the lowest of the low.
When this is repeated over and over when printing the names of Presidents Obama and Biden one would have to question the sanity of this scribe.
In other words…a really sad person.
1 Like
Justice Department to End Federal Contracts With Private Prisons
biden sure has it in for Canada, another job-killing exec order
We all know this is just a bone he is throwing to the greens, the sad thing killing this pipeline is actually bad for the environment as pipelines are by far the most environmentally friendly means of moving oil across the land. That oil is not just going to sit there, it will get to market just now in a very carbon costly way with a much higher possibility of a spill
1 Like