BitCoin
Quote: EvenBobQuote: DRichWho needs Bitcoin? I have just started investing in Chicken-coin.
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Paid $5 for a dozen eggs at Walmart last week. A year ago they were 99 cents.
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But the CPI went down last month?
dude you're hijacking. I read that for nothing.Quote: ChumpChangeDeflation is when car prices go down 25% over one quarter. It's not when car dealers go out of business because they can't sell cars at inflated prices amid rising interest rates that killed off financing customers. Cars are going no bid at dealer auctions because the reserve is not coming down. The market is clogged with expensive cars that won't get marked down. Maybe the MSRP markups are disappearing and that would be a deflation. When dealers double the price with MSRP markups, just coming back down 50% would get the market back to MSRP.
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The CPI number is based in part on car sales, and there is a problem with that, as I explained.
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As for eggs, with a 5 or 10-fold price increases, financially-stressed people will cut down or stop buying eggs. Other foods made with eggs will go way up in price or will be taken off the shelves because they can't be sold at inflated prices. If only the rich buy eggs, maybe prices will come back down?
Just In - Bird Flu: The Real Reason Why Eggs Are So Expensive - TYT - YouTube https://www.youtube.com/watch?v=4DaD3I7dtKY
I think only you know what you are discussing in your own head, oftentimes, we are lost understanding whatever nuanced talking points you are trying to convey.Quote: ChumpChangeI was making a distinction between the CPI number going down and what deflation is. The CPI going down is not deflation. Prices must come down for there to be deflation. If the CPI is above 0%, that's not deflation, prices are still rising.
The CPI number is based in part on car sales, and there is a problem with that, as I explained.
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As for eggs, with a 5 or 10-fold price increases, financially-stressed people will cut down or stop buying eggs. Other foods made with eggs will go way up in price or will be taken off the shelves because they can't be sold at inflated prices. If only the rich buy eggs, maybe prices will come back down?
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Quote: ChumpChangeDeflation is when car prices go down 25% over one quarter. It's not when car dealers go out of business because they can't sell cars at inflated prices amid rising interest rates that killed off financing customers. Cars are going no bid at dealer auctions because the reserve is not coming down. The market is clogged with expensive cars that won't get marked down. Maybe the MSRP markups are disappearing and that would be a deflation. When dealers double the price with MSRP markups, just coming back down 50% would get the market back to MSRP.
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Deflation takes more than one quarter, I would not call it deflation until at least a year. But I agree on car prices. Dealers will take forever to lower auction reserves. They will be loathe to lower used car prices on the lot. Manufacturers were thought to have changed their attitude and not have lots full of iron to move and thus need few incentives.
We will be back to normal eventually. Manufacturers will not be able to help themselves.
Deflation is also your currency just buying more, which Bitcoin has been. Instead of printing more to get less the amount is fixed and you just keep dividing it more. The average person does not understand deflation at all.
Inflation/Deflation, 'Takes,' whatever period you are using to measure it; it's nothing more than a comparative tool. You could compare the price of a set of items to what the price was five minutes ago, if you wanted to. For most sets of five minutes, especially if you are only using a few items as a baseline, inflation/deflation will be 0%, or unchanged. It doesn't matter what I would call it, you would call it or anyone would call it---it's just what period of time is being used.
Would a five minute comparison for deflation/inflation be valid? Probably not. Unchanged most of the time.
Does it have to be based on an entire year? No. You can take a period of a few months and use it to see a trend, then do some research on market drivers and determine whether or not you think the trend will continue. That's probably a good idea when it comes to major purchases you might have upcoming.
The CPI is based on a basket of goods that is continuously redefined and whose definition is carefully engineered to produce outcomes consistent with the political desires of whatever administration is in power. It is an insincere metric.
Quote: gordonm888The problem with the CPI as a metric is that it doesn't include: rent and other costs of housing, the price of wood and construction materials, gasoline, the price of airline tickets, the price of restaurant meals, the cost of OTC and prescription drugs, the cost of haircuts and other services, etc.
The CPI is based on a basket of goods that is continuously redefined and whose definition is carefully engineered to produce outcomes consistent with the political desires of whatever administration is in power. It is an insincere metric.
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It's a very flawed measurement, but politics keeps it as the benchmark. Imagine the outrage if an administration introduced a new formula showing a considerable CPI drop. For similar reasons, no administration will release a new formula that makes them look bad, so we stay with the flawed benchmark.
Usually the factoids that are so often getting squeezed off by one of the Cliff Claven type "AP" clubhouse regulars hanging out in the WoV forum are known to be loosely based on something that's almost kinda sorta partly true, after being lifted without attribution, re-jiggered, and stood upside down. Or, a bong water reflection thereof, when seasonally adjusted for someone's routine attempts to tout a confused version of a political ideology seasoned with a generous portion of some simmering personal resentments. And worth half a snicker, which is what they reliably get from most readers, unknown to the author of them and the small circle of treefort clubhouse residents.Quote:...doesn't include: rent and other costs of housing, the price of wood and construction materials, gasoline, the price of airline tickets, the price of restaurant meals, the cost of OTC and prescription drugs, the cost of haircuts and other services, etc...
Except sometimes, when not. And this is one that would absolutely need to be called a definite just plain "not." Very not, without the unsavory seasoning of the usual nuggets from the usual suspects, but indigestible if one happens to be very familiar with the subject. (And I have no doubt the original poster of the assertion truly believed it to be so... and will think for sure it came from somewhere or other.)
Quote: https://www.bls.gov/cpi/overview.htm (United States Bureau of Labor Statistics - CPI)
Sources of data
...Data on rents are collected from about 50,000 landlords or tenants...
...The biggest category by far is shelter, which accounts for nearly a third of the index...
