Old Project Avalon Forum (ARCHIVE) - View Single Post - WATCH OUT for a BIG JUMP in Consumer Prices

peaceandlove · 06-26-2009, 12:48 AM

I just went shopping yesterday and saw another spike in prices for the products I buy, seems to go up weekly now.

WATCH OUT for a BIG JUMP in Consumer Prices

Posted: 3:04 am
June 23, 2009
John Crudele
New York Post

INFLATION IS NEAR.

Imagine that I'm walking around with one of those sandwich boards proclaiming that soon -- very soon -- Washington is going to start reporting that consumer prices are rising by uncomfortable amounts.

Sorry, folks.

But when you are doing a column about the Consumer Price Index -- or CPI, as it is lovingly called by the Bureau of Labor Statistics (BLS), there's very little a columnist (or even a magician) can do to make this very moist.

Warning: dry stuff ahead!

But you really should continue reading because what I'm about to tell you could have an immense impact on your lives if you invest in the stock market or in bonds, are going to borrow money or save it, care about the nation's recession or maybe just want to know something that the bloodsuckers on Wall Street don't.

For the past couple of springs the BLS, which is in charge of calculating the nation's inflation rate, has been understating the amount of inflation we are experiencing.

Here's what is happening.

Because we've had annual run-ups in the cost of energy these past few springs, the computers that calculate inflation at the BLS now tend to anticipate a jump in gasoline prices.

The computers look at the past five years for guidance on their seasonal adjustments. In other words, they saw this spring's increase in gas prices coming.

And since it was expected, some of the rise in gasoline prices this year was subtracted out of the CPI by the seasonal adjustments.

Continues: http://www.nypost.com/seven/06232009...pri_175628.htm

SOURCE: http://solari.com/blog/ Catherine Austin Fitts' Blog

06-26-2009, 12:48 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	WATCH OUT for a BIG JUMP in Consumer Prices I just went shopping yesterday and saw another spike in prices for the products I buy, seems to go up weekly now. WATCH OUT for a BIG JUMP in Consumer Prices Posted: 3:04 am June 23, 2009 John Crudele New York Post INFLATION IS NEAR. Imagine that I'm walking around with one of those sandwich boards proclaiming that soon -- very soon -- Washington is going to start reporting that consumer prices are rising by uncomfortable amounts. Sorry, folks. But when you are doing a column about the Consumer Price Index -- or CPI, as it is lovingly called by the Bureau of Labor Statistics (BLS), there's very little a columnist (or even a magician) can do to make this very moist. Warning: dry stuff ahead! But you really should continue reading because what I'm about to tell you could have an immense impact on your lives if you invest in the stock market or in bonds, are going to borrow money or save it, care about the nation's recession or maybe just want to know something that the bloodsuckers on Wall Street don't. For the past couple of springs the BLS, which is in charge of calculating the nation's inflation rate, has been understating the amount of inflation we are experiencing. Here's what is happening. Because we've had annual run-ups in the cost of energy these past few springs, the computers that calculate inflation at the BLS now tend to anticipate a jump in gasoline prices. The computers look at the past five years for guidance on their seasonal adjustments. In other words, they saw this spring's increase in gas prices coming. And since it was expected, some of the rise in gasoline prices this year was subtracted out of the CPI by the seasonal adjustments. Continues: http://www.nypost.com/seven/06232009...pri_175628.htm SOURCE: http://solari.com/blog/ Catherine Austin Fitts' Blog Last edited by peaceandlove; 06-26-2009 at 12:50 AM.