Where's deflation ? The Fed's double standard

Discussion in 'Economics' started by Kicking, Dec 2, 2009.

  1. Why is nobody acknowledging that CPI is no longer calculated the same way as it was prior to Clinton? Well that is not the same as the calculation that the Fed uses for PCE Core inflation, but it used to be.

    http://www.shadowstats.com/
     
    #31     Dec 3, 2009
  2. What? People have been avoiding buying houses lately at least in part because they don't want to jump on sinking ships. I'm speaking of those with credit or assets to devote to a property. A car costing $1k less yoy is not an example of spiraling deflation.
     
    #32     Dec 3, 2009
  3. achilles28

    achilles28

    A deflationary spiral has never occurred outside the Great Depression.

    That prolonged deflation largely resulted from the Gold Standard. Which no longer applies.

    Tales of an apocalyptic deflationary spiral is nothing but economic fear-mongering.

    Assets become overvalued in Bull Markets.

    Assets become undervalued in Bear Markets.

    Cheap assets provide the bottom for value in a Bear Market, and the resumption of investment, which evolves into recovery.

    Any deflation hawk care to cite real world examples of catastrophic spiraling deflation? I would love to see it.
     
    #33     Dec 3, 2009