Favorite Quotes

CURRENT FAVORITE QUOTES

"The most fundamental form of human stupidity is forgetting what we were trying to do in the first place"

"Party like its 1929"

Thursday, January 6, 2011

Where did all that inflation go? And why do I keep finding it?

The other day I was driving to work and heard on the radio some government wanker going on about how there is no risk of inflation and quoting CPI stats from the BLS (Bureau of Labor and Statistics, a.k.a. the Bastards, Liars and Swindlers). Now I am no high-powered economist, just a regular Joe and it sure seems to me that the price of damned near everything is going up faster than my rate of adjustment (and certainly faster than my rate of pay). To resolve this confused state of mind I spent some time poking around on the BLS website and reading the explanation of what they are up to when they stir the bubbling pot of bullshit that they call statistics. My head hurts now, a lot.

One thing that I have to give them credit for; they tell you (if you willing to dig just a bit) what the Politicians won't; the CPI is not the Cost of Living. It is the product of a complicated string of calculations in which they plug in tons of variables. This of course translates into two words: Bullshit Factory.

Here are the things that allegedly are incorporated in the CPI:
  • FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
  • HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
  • APPAREL (men's shirts and sweaters, women's dresses, jewelry)
  • TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
  • MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
  • RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
  • EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
  • OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).
Now, it seems to me, that everything on that list has gone up over the last year. Most of them by a significantly higher margin than the currently stated annual rate of less than 3%. What I want to know is where do these folks shop? In fact, the only thing that went down was the value of my house, and I bought it twelve years ago (the payments remain the same however). Think about that list and see if there is ANYTHING on it that has only gone up 3% over the last year. My back of a postcard efforts generate a rise of closer to 20%.

So the next time some mouth-breathing shill for the Government defends Benny and the Inkjets efforts at debasing our currency ask them to point out the items that cost less, you know, the ones that are offsetting the near 100% increase in the cost of gas, or the 60% increase in the cost of coffee and breakfast cereal. Because, when you think of it, those things gotta be pretty damned close to free by now and I want to stock up.

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