ikilled007: Funny Essay

Michael (

ikilled007) wrote,
@ 2008-05-10 14:52:00

Funny Essay
Hat tip to

whip_lash for finding this hysterical essay which explains that not only are the government's inflation statistics overstating inflation, but that your purchasing power is actually improving (The government states that inflation is about 2.7%)-- overthrowing the laws of supply and demand and setting the social science of economics back 10,000 years. Let's face it, if you can do this to the money supply and not negatively affect the value of your currency, then it would be immoral not to print as much money as the trees will allow and inject it into the banking system. (Don't lecture me about the material composition of the dollar, thanks.)

So there you have it: inflation is going down to the extent that it exists at all! (One must wonder what search terms Whip puts into google to find these comedic results -- "No understanding of basic economics but I write essays about it anyway"?)

(Post a new comment)

whip_lash
2008-05-10 03:33 pm UTC (link)

but that your purchasing power is actually improving

Not exactly what I said, or for that matter what the article, which I don't even pretend to totally agree with, said.

The currency isn't deflatiing. It's inflating faster than the government statistics. It may very well be inflating at double digits. But that doesn't mean your purchasing power is decreasing that fast (it isn't, or Social Security recipients would literally be howling). Idiots are probably using it to buy up stuff on speculation - that was houses, for a while, then it was hedge funds buying public companies, now it's probably, I dunno, gold.

(Reply to this)(Thread)

ernunnos
2008-05-10 03:48 pm UTC (link)

Social Security recipients are howling.

Seniors Lose 51% of Buying Power Since 2000
Cost-of-living adjustments don't keep up with inflation

May 8, 2008
Consumers are all too aware that the costs of food and energy have skyrocketed in the last few months. But a senior citizens' group says older Americans have seen their dollars stretched ever-thinner for much longer, and have lost 51 percent of their buying power since 2000.
Each year, seniors receive a small increase in their Social Security checks, intended to help them keep up with the costs of inflation.
But since 2000, the Social Security Cost of Living Adjustment (COLA) has increased average benefits just 24 percent while typical senior expenses have risen by 88 percent, almost four times as fast, according to a report by the Senior Citizens League.
The study examined the increase in costs of fifteen key items between 2000 and 2008. The items were chosen because they are emblematic of the costs seniors must bear. Twelve of the fifteen costs exceeded the COLA - and three jumped by triple digits. The selected items represent seven categories, weighted by approximate expenditure: housing, transportation, medical, food, recreation, communication, and apparel.
A senior with the average Social Security benefit in 2000 received $816 per month, a figure that rose to $1013.50 by 2008. However, that senior would require a Social Security benefit of $1,531.60 per month in 2008 just to maintain his or her 2000 lifestyle, the study said.

(Reply to this)(Parent)(Thread)

	ikilled007 2008-05-10 03:54 pm UTC (link)
	Department of Pwned on the phone. Has anyone seen Whip? (Reply to this)(Parent)(Thread)

rightc0ast
2008-05-10 05:47 pm UTC (link)

You know what is flabbergasting? When you realize there is actually a person on the other end of that keyboard, and someone like that isn't trolling. As you realize there are people that aren't, "not educated enough", but ones that genuinely believe that shit, and actively work to support it blowing smoke up everyone's ass you realize how much this whole thing is going to hurt one day.

(Reply to this)(Parent)

whip_lash
2008-05-10 06:07 pm UTC (link)

But since 2000, the Social Security Cost of Living Adjustment (COLA) has increased average benefits just 24 percent while typical senior expenses have risen by 88 percent

That would be an inflation rate of less than 8 percent, not over 10, if the seniors' numbers are accurate, which they are not.

I know they are not because seniors are not, in fact, howling. Their advocacy group is doing what you're doing: making up an inflation number and then basing the fact that they ought to be howling off that number.

But they aren't. In 2000, Florida was the ultimate swing state. It's now safely Republican (especially if Obama is the nominee), which is credited in part to a further influx of seniors. You would have me believe that the ruling party has solidified its support in a segment of the population they're starving to death. Now I realize a lot of these people are senile, but not all of them.

(Reply to this)(Parent)(Thread)

	kylebee 2008-05-12 09:31 pm UTC (link)
	You would have me believe that the ruling party has solidified its support in a segment of the population they're starving to death. You would have us believe that more than 5% of the population understands economics. (Reply to this)(Parent)(Thread)

	whip_lash 2008-05-12 09:34 pm UTC (link)
	No I wouldn't. I'd have you believe that 100% of the population can tell when they're suffering, and blame the people in charge (whether rightly or wrongly). That skill greatly precedes the formal study of economics. I suspect it precedes the human discovery of fire. (Reply to this)(Parent)(Thread)

	kylebee 2008-05-12 09:37 pm UTC (link)
	People always blame "the economy" for suffering just because the media reports it to them. The "suffering index" almost always trails actual economic problems, which can be plainly seen in independent money supply analysis. (Reply to this)(Parent)(Thread)

whip_lash
2008-05-12 09:45 pm UTC (link)

I'm not sure how that does anything but strengthen the argument. People have been told they're suffering for months now, but Republican support in mortuary bait areas remains high. Either they're so stupid they can't understand what the media is telling them, or so smart they don't believe Republicans are directly responsible despite what the media is telli ng them, or, more likely, things simply aren't bad enough for them to pay much attention. Regardless, they clearly don't believe they're boned.

(Reply to this)(Parent)(Thread)

	kylebee 2008-05-12 09:46 pm UTC (link)
	I think you're right in the short-term; people are not suffering right now. But I'm not talking about right now. (Reply to this)(Parent)(Thread)

	whip_lash 2008-05-12 09:47 pm UTC (link)
	But Michael thinks the inflation rate has been, what, ten percent higher then the official figure for a decade or more? If that were the case, they'd be suffering now, if there were any of them still alive. (Reply to this)(Parent)(Thread)

ikilled007
2008-05-13 11:47 am UTC (link)

As of 10/7/2007 or so, China was sitting on $1.3 Trillion worth of US reserves. To the extent that Americans have not felt the full brunt of price increases you can thank a Chinese practice that cannot continue indefinitely. All you have to do is look at the growth in the US money stock to see that inflation is real and high.

This is all pointless though, I guess. In a couple of years you will know what I know and you will look back and wonder why you were being such an ass. You can't wish away the laws of economics. Even your Chicago School supply side heroes have had to eat their hats -- Ben Stein, for instance. Arthur Laffer, in the video you couldn't see, made a total ass of himself arguing with Schiff in '06. Schiff was right and Laffer is no doubt trying to find and erase those videos.

(Reply to this)(Parent)

ikilled007
2008-05-10 03:53 pm UTC (link)

Seniors have some advantages. For one thing they don't drive as much. For another, they get a lot of discounts (senior discounts, you've heard of them). For another, they get massive subsidies for medicine. It takes a little longer for them to feel the full squeeze. But they will feel it, don't worry. In fact, they already are starting to as per that link I sent you in your journal.

Anyway, purchasing power is decreasing and it's decreasing fast and daily. Gas goes up just about every week. So does food. The prices of other shit that people can do without won't go up as fast because people will cut back on them. To the extent that women's clothing is not going up much, it's more likely that women are cutting back on buying new clothes or that they're buying cheaper brands because their purchasing power has dropped.

The market for substitute goods ought to be thriving right now. Expect shitty restaurants to do more business as people start downgrading. I really shouldn't have to explain all this to you. Just look at your own budget and see how you've adjusted the last 3 or so years. Do you drive as much? Be honest? Do you travel as much? Do you buy the same food in the same amount or have you downgraded in some way? How about clothes? Furniture? Put off any minor car/house repairs?

Anyway, a fool convinced against his will remains of the same opinion still.

ps: wait until the Alt-A collapse comes. That's only about $3T in exposure. :)

(Reply to this)(Parent)(Thread)

whip_lash
2008-05-10 06:16 pm UTC (link)

Just look at your own budget and see how you've adjusted the last 3 or so years.

My income is up about 50 percent in the last 3 years (really) and I expect it to go up by roughly the same amount again over the next three, so I can't really judge much based on my own example. Nor, frankly, on the example of my state which has enjoyed similar prosperity. I'm thinking of moving closer to work to save time and gas, but given we'd be moving into a bigger house in an upscale suburb I wouldn't exactly call it a savings.

But then, I don't know of many employers around here who give raises of less than 4 percent a year. Which is close to, though not quite, what I suspect the real rate of inflation in most consumer goods is. There's no question food and gas hurt, but those are supply issues. There's also no question that at these prices the Chinese will begin to increase their farm efficiency, currently 1/10 ours, and that we'll continue to hit oil especially offshore.

I'll make you a deal. If I begin to feel the pinch, I'll let you know.

(Reply to this)(Parent)

	ernunnos 2008-05-10 03:33 pm UTC (link)
	But you see, the price of women's garments is going down. And since whip_lash soils so many panties, it kind of evens out for him... (Reply to this)(Thread)

	whip_lash 2008-05-10 06:23 pm UTC (link)
	The price of fertilizer is continuing to rise, so this crisis shouldn't worry you any. You can make a living by opening your mouth. (Reply to this)(Parent)

Mini Sitemap:

Username:		Create an Account Forgot your login? Login w/ OpenID
Password:
	Remember Me
	English • Español • Deutsch • Русский…