also note that these inflation rates are based on the 'official' measure of inflation ex food and energy, not on the arguably 'true' rate of inflation (which has just exceeded 10% BTW)





also note that these inflation rates are based on the 'official' measure of inflation ex food and energy, not on the arguably 'true' rate of inflation (which has just exceeded 10% BTW)




i've always questioned the exclusion of food and energy to inflation.
it never made sense to me as a student nor as a businessman. if anything, those are the only things that could/should not be excluded imo (as they touch all aspects of life).
and why is it that interest rate changes are weighted more than an energy crisis or food competition (e.g. ethanol or atkins popularity). some factors seem mundane but probably have as great or greater influence than domestic interest rates adjustments on inflation.
*sigh* i'll just snuggle down deeper in my handbasket on our collective trip to hell.





^^^ John Williams at has dedicated himself to independently calculating equivalent economic stats using the 'original' forumlae, to provide perspective against the 'official' US gov't stats. For example, John's calculations using the pre-Clinton era inflation formula (including food and energy and ex 'hedonic adjustments') now shows a 10.3% inflation rate. His calculation of M3 - the broadest measure of growth in the number of US dollars being printed, which the US gov't stopped releasing a couple of years ago - now shows a 13.3% rate of growth in total US dollar money supply.




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