Re: CPI a fraud?


r...@xxxxxxxxx wrote:
> On 18 Sep 2005 11:10:52 -0700, "Negloid" <negloid@xxxxxxxxxxx> wrote:
>
> >The Trucker wrote:
> >> "Negloid" <negloid@xxxxxxxxxxx> wrote in message
> >> news:1126711389.185094.25640@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> >> >
> >> > The Trucker wrote:
> >> >> "Negloid" <negloid@xxxxxxxxxxx> wrote in message
> >> >> news:1126638840.450209.133100@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> >> >>
> >> >> > The notion that the CPI understates rent and equivalent rent remains
> >> >> > completely unsubstantiated by you neogeorgists, or whatever the hell
> >> >> > you are supposed to be.
> >> >>
> >> >> You have been presented with the _FACT_ that
> >> >> land price increases are hidden by wiping the slate
> >> >> clean on the resale of real estate.
> >> >
> >> > The _FACT_ as provided by you? We both know that your _FACTS_ come
> >> > directly from your ass, Mike.
> >>
> >> Perhaps you'd like to address this more directly:
> >>
> >> http://www.michael-hudson.com/articles/realestate/01LieRealEstateStatistics.html
> >
> >Ah yes, tax appraisers are rigging the numbers so that they can tax
> >less.
>
> <sigh> No, stupid, lying idiot. You simply refuse to know any of the
> facts we identify for you that disprove your false beliefs.
>
> By rigging the numbers, tax appraisers can often shortchange senior
> governments and shift some of the money into their own jurisdictions.
> Consider a property worth $1M, 90% of it land value. With the owner's
> tacit cooperation, the appraiser appraises it at $1.1M, 90% of it
> improvement value.

This is, by definition, a conspiracy theory. Sorry if you don't like
the term, but it fits perfectly.

You are a whackjob. Congratulations.

> Result: the owner gets to write off huge
> depreciation _plus_ his local property taxes, while the local
> jurisdiction collects more tax on the higher appraised value. The
> owner wins, the local appraiser's jurisdiction wins, and only the
> senior government loses through being defrauded of the income taxes on
> the phony depreciation as well the deduction of the inflated tax bill.
>
> BTW, you also seem to be unaware that tax apraisers do not _pocket_
> the taxes on the property they appraise. They have little motive to
> increase landowners' tax bills, and often very good motives to reduce
> them -- e.g., bribes, friendships, family and business connections,
> etc. These people are usually locals. They don't want to make
> powerful (i.e., rich, landowning) enemies. Where a favor can be done
> by shifting value to improvements while keeping the local property tax
> bill the same, they are very likely to do as the landowner demands.

Even if all of this is true, over-valuing the building increases
depreciation expense, which increases the positive hedonic adjustment
to the CPI.

> >Makes sense!
>
> Reality won't make sense to you as long as you refuse to know any of
> the facts that disprove your false beliefs.
>
> >But again, even if your unsubstantiated conspiracy
> >theory
>
> You see, now you are lying again. The situation described in Dr.
> Michael Hudson's paper is not a conspiracy theory, and as he proved,
> it is anything but unsubstantiated. It is fact.

I posted this in response to your buddy's webpage:
--------------
His data allegedly come from here (Table Z.1):
http://www.federalreserve.gov/releases/z1/current/annuals/a1985-1994.pdf


Page 95 has the balance *** for "Nonfarm, Nonfinancial Corporate
Business"

....which is the closest data set to the one he referred to in his
dialogue.

I don't know what calculations he is supposedly doing to arrive at his
conclusions. I dont see any negative four billion dollars there.
--------------

I "eagerly" await your explanation.

> And you are just a liar.
>
> >is correct, you would only create higher inflation with this
> >fudging.
>
> More lies.

More childish whining.

.

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