The Death of equities, how inflation is killing the stockmarket.
- Thread starter Debaser82
- Start date
The inflation numbers given are bogus, rendering the results useless.
so safe to say 78 was an aberration in the statistics? all other years looks like the correlation is there.
In about 1980 they changed to the "hedonics" where if something became expensive, they exclude it and substitute something else.
They also changed the unemployment percentage calculation about the same time. The problem was the "misery index", and to fix it they changed how things are calculated to make things look better. Its been done that way since, enabling them to reduce Social security increases by 50% since then as a result.
See shadowstats.com for the numbers compared.
They also changed the unemployment percentage calculation about the same time. The problem was the "misery index", and to fix it they changed how things are calculated to make things look better. Its been done that way since, enabling them to reduce Social security increases by 50% since then as a result.
See shadowstats.com for the numbers compared.
I don't know the exact point in time the government changed how inflation was calculated, but those numbers look honest to me for 1980. The problem is that all the numbers SINCE the change have been lowball lies. If you look at the chart at shadowstats http://www.shadowstats.com/alternate_data/inflation-charts you will see how the new calculations reduced what the government REPORTS as inflation starting in late 82 or early 83 from the looks of it. What I'm saying is that what we are looking at since is a systematic misreporting used by the government to make the numbers look better and to reduce payments to Social Security recipients.
Very true, I really find it impossible to believe, especially since I was sitting in an Economics class in college in 1980 while we went thru that time, that with the US dollar making the move that it has in the last 9 months we have near zero or low single digit inflation.
EUR/USD
Mar '09 ~1.25
Dec '09 ~1.50
The european companies have been sacrificing profits and "eating" the cost differential to keep their plants alive because they can't easily just lay people off or fire them like here in the US.
Healthcare is up another 15% here, this year. Fuel costs, too. Food hasn't risen. It went way up and back down much of the increase, I think.
But we all know inflation wasn't zero. Its just the government cheating on the numbers to make them look better.
Healthcare is up another 15% here, this year. Fuel costs, too. Food hasn't risen. It went way up and back down much of the increase, I think.
But we all know inflation wasn't zero. Its just the government cheating on the numbers to make them look better.
Quote from Debaser82:
The cover is from 1978 I believe.
What gives?
I thought stocks offer protection against currency debasement.
Ask both persons 20 years later who bought a basket of stock representing the S&P 500 and a person who bought gold the year that article was published.
Who do you think did better. (gold does not pay dividends either)