Economic Populist Commentary

Economic commentary by a pro-capitalist, economic populist. Demand-Side Economic theory. Consists of author's economic views. Questions & comments appreciated. Dissenting views are VERY welcome and encouraged. Main "agenda" is crafting and advocacy of a "populist" economic agenda. A secondary goal is prevention of an economic Armageddon. Encouraging open discussion of US economy.

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Location: Southern California, California, United States

The author is a physician by profession, and a "student economist" by necessity. The current status of our economy necessitates the latter. The intent of this blog is to explain and discuss economics in layman terms. It is designed to promote thought and discussion. It is written by a layman. Comments and critiques of these theories and letters are welcome and ENCOURAGED. Dissenting comments are also WELCOME! They form the basis for discussion.

Monday, June 25, 2007

INFLATION CONFABULATION



Once again, the Right-Wing Corporate media, along with the Federal government, have confabulated a low inflation rate. Once again, they've selectively focused on only 1 number, the "core" CPI, while ignoring the overall monthly CPI increase of +0.7%. (which, if annualized, comes out to a yearly rate of increase of +8.4%.)
In fact, the overall Consumer Price Index has increased 3.05% in the 1st 5 months of 2007 alone. The annualized increase during the 1st 5 months of 2007 is +7.4%. The "tame" inflation rate during the last 1/2 of 2006 has been replaced by a rapid rise in 2007.
No doubt some will claim that inflation rises faster during the 1st 5 months of the year. However, the 3.05% rise in inflation during the 1st 5 months of 2007 is faster than during any previous year under Bush. The 1st 5 months of 2006 were the closest, with an increase of +2.9%. However, the January through May increase was only +2.1% in 2005, +2.6% in 2004, +1.44% in 2003, +1.75% in 2002, and +2.1% in 2001.

Below is a graph of the CPI from the Bureau of Labor Statistics. Note the rapid acceleration in recent months.



Inflation is clearly rising faster in 2007 than it has during any other time since 2001. The assessment that inflation is "under control" is not just "spin." It is factually wrong.

Economic Populist Forum

3 Comments:

Blogger unlawflcombatnt said...

jj2000426,

Thanks for your comment.

Palladium is one of the 4 precious metals I regularly track. If my memory serves me right, it's a component in many catalytic converters, and has been used to replace more expensive platinum components.

Over the last several years, palladium has moved pretty much in tandem with gold, silver, and platinum.

However, there was a period a few years ago when palladium prices declined a lot, and not in tandem with other precious metals.

Since palladium does have industrial use, unlike gold, it's likely that its price would fluctuate with industrial demand and, more specifically, to automobile demand.

Economic Populist Forum

2:46 PM  
Anonymous Anonymous said...

Inflation or price inflation refers to a general rise in the level of prices of goods and services over a period of time. The term "inflation" originally referred to increases in the money supply (monetary inflation); however, debates regarding cause and effect have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of money—a loss of purchasing power.Memory is subject to confabulation because it is reconstructive. Confabulation is confusing an event that happened to someone else with one that happened to you; or coming to believe that you remember something that never actually happened. There are four circumstances which confabulations are especially likely.The first occurs when an imagined event is thought about many, many times. An example is an exaggerated story often told at family gatherings, even if the person was not at the particular gathering the incident occurred they imagine it so thoroughly they begin to think they witnessed the event. This is often called "imagination inflation" because one's own active imagination inflates a belief that the event actually occurred.
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james wilkins

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