Re: Fables of the Greenspan

From: Andy F (aft627_at_aol.com)
Date: 10/21/04 

Date: 21 Oct 2004 05:27:24 -0700

"Animaminima" <animaminima@yahoo.com> wrote in message news:<1098292556.845847.119410@z14g2000cwz.googlegroups.com>...
> With crude oil at $54, gasoline well over $2 and not looking back,
> gold at $425, silver over $7, the Euro at $1.25, and real estate
> prices jumping 20-30% per year in civilized parts of the country, can
> someone explain to me how the U.S. government can say there is no
> inflation and and keep the prime rate down around 2%? Is this bull***
> or is it bull***? I'd like some explanation.

There isn't really a single variable called 'inflation'. Some prices
are going up and others are going down.To measure the 'rate of
inflation' you have to use some sort of average or index. Which index
you use depends to some extent on value judgements.

The CPI has been generally accepted for some time as a reasonable
estimate of the 'cost of living.'

Having said that, it's much more fun to blame everything on an Evil
Conspiracy.

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