Monday, January 14, 2013

Low Inflation is a Myth

3 comments:

  1. 0:50 Word game. Define inflation as ∂ [Money supply] / ∂t or as ∂ [Price level] / ∂ t. Who cares?

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  2. 1:20 I'd be interested to know what Schiff would say about BLS data if it supported his thesis.

    In any case, shadow stats http://www.shadowstats.com/alternate_data/inflation-charts registers the exact same response curve as does the CPI-U, just a few points higher like it's been since well before 2008.

    So inflation is higher? But that doesn't prove his point. He needs an alternate data source that shows that price levels rose (more than CPI-U says) in response to Q.E.

    2:15 And against however many thousand of these folks http://www.bls.gov/jobs/workenviron.htm he cites "a survey of 1,024 voters". They don't even estimate the inflation level (whoops, he switched back to the normal usage of ∂P/∂t!), they just say they are concerned about it. Reeeeally stretching there.

    3:00 Then it's again to "But my theory needs to be correct, because I supposed it's correct!"

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  3. 4:40 Where is his data coming from?

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