Tag Archives: inflation

Milton Berg: We’re at the Cusp of a 30-Year Bear Market

“The most overvalued equity market in history”

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Filed under Economics, Zeitgeist

Market Sentiment: Bubble Trader Pro

BubbleTraderPro

Courtesy of @Not_Jim_Cramer.

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Filed under Economics, Zeitgeist

Amazon Increases Free Shipping Minimum Spend from $25 to $35

Increased prices in action, and not one mention of the “I” word (inflation) in the article.

Amazon raises free shipping minimum to $35 (CNN Money)

I don’t care about Amazon Prime because it’s a sunk cost.

Here is Amazon’s message about the change.

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Filed under Consumer, Economics, Zeitgeist

YouTube: Kyle Bass on Japan, Gold, Housing, Activist Investing

 

YouTube: Kyle Bass – Japan, Gold, Housing, Activist investing (Bloomberg, 09.04.13)

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Filed under Consumer, Economics

Inflation, CPI and Hedonic Adjustments

Are US prices rising more rapidly than the federal government statistics indicate?

Here is Peter Schiff’s take in “Inflation Propaganda Exposed”.

Compare this against an establishment Republican’s take on AEI’s website with “Is the US government wildly understating the inflation rate? No, it isn’t“.

Why not also take a look at Google Trends data comparing relative search patterns on “expensive” v “inflation”?

To summarize my opinion, I agree with Hazlitt who argued against the utility of price indexes for economic intervention on the grounds that it is only relative changes between individual prices that communicate meaningful information about monetary stability. The logic behind hedonic adjustments is flawed because people don’t derive utility from “quality improvements” alone; there is also disutility from obsolescence and “relative deprivation“.

Additional Resources:

Bureau of Labor Statistics: Hedonic Quality Adjustment in the CPI
Macrotrends: Dow to Gold Ratio
Wikipedia: Network effect
Shadowstats: Alternate Inflation Charts

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Filed under Consumer, Economics, Politics