made an wonderful observation that while the CPI has has lillt
to no change over the past couple years, the CRB was up 19%.No
inflation my patooti.
Want more proof, just look at the stock market. I don't doubt
the folks saying the Dow will get to 20k or higher in the next few
years. It is just that 20k+ then will be worth 10K or less in 2010
values!!!
Before I start my stories for the
day, I've got two more charts for you. Yesterday I ran the CRB
chart, noting that the CRB was a long way away from taking out its
highs of 2008. For those of you who have been around long enough,
you may remember that the 'powers that be' re-engineered the CRB
about five years ago [or more]... and reduced the oil and gold
weighting... along with a few other things. They basically did a
Greenspan Hedonistic Adjustment to the index... gutting the whole
thing. If you look at the old CRB... which is now called the CCI...
you'll note that we are back above the old highs of 2008 for the
first time. Here's the 3-year CCI chart.
And, in case you've forgotten,
here's the 'new and improved' 3-year CRB index... the one we use
today. It's obvious why they changed it... it keeps inflation and
the cost of living down. Any questions?
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Rick Santelli on CNBC this am
Posted by perthx on 23rd of Dec 2010 at 12:18 pm
made an wonderful observation that while the CPI has has lillt to no change over the past couple years, the CRB was up 19%.No inflation my patooti.
Want more proof, just look at the stock market. I don't doubt the folks saying the Dow will get to 20k or higher in the next few years. It is just that 20k+ then will be worth 10K or less in 2010 values!!!
this was in Ed Steer's
Posted by its44me on 23rd of Dec 2010 at 12:20 pm
this was in Ed Steer's column.....
Before I start my stories for the day, I've got two more charts for you. Yesterday I ran the CRB chart, noting that the CRB was a long way away from taking out its highs of 2008. For those of you who have been around long enough, you may remember that the 'powers that be' re-engineered the CRB about five years ago [or more]... and reduced the oil and gold weighting... along with a few other things. They basically did a Greenspan Hedonistic Adjustment to the index... gutting the whole thing. If you look at the old CRB... which is now called the CCI... you'll note that we are back above the old highs of 2008 for the first time. Here's the 3-year CCI chart.
And, in case you've forgotten, here's the 'new and improved' 3-year CRB index... the one we use today. It's obvious why they changed it... it keeps inflation and the cost of living down. Any questions?