The Deflation and Productivity Hoax
Herve Van Caloen's missive The Deflation Hoax suggested: "I will not eat bread today because I expect the price of bread to be lower next week. Sounds crazy, right? What about the idea that people will postpone buying the iPad 6 because they know it will be cheaper in a year from now?"
Herve commented: "I believe the CPI hugely understates real inflation, mostly because of an "estimated" cost of rental."
We Nattered: "Nice piece Herve,
"I believe the CPI hugely understates real inflation."
The Fed firmly "anchors expectations" through econometric falsity and a duplicitous media narrative. Pay no heed to that man behind the curtain...
Alex Scagileri opines: "Sure....Government can "pick up the slack" by giving money to drug addicts I guess...or creating more of them."
We Nattered: The Happy, Horny, Skinny Drug... ask your Doctor if Wellbutrin is right for you. If not, talk to your local dealer/broker about Crystal Meth and futures in American Addiction Centers.
TF17 commented: "Productivity gains in recent years have flowed to capital, not to labor."
We Nattered: "As for the flow to capital, Bingo. The productivity gains are another falsity being utilized in an illusory econometric for the media narrative. The good paying labor intensive jobs were outsourced, lower paying service sector Mcjobs and part time jobs were substituted. Less hours worked, lower wages, less real income, less spending equated to "greater productivity". That cadaver or part of this zombie economy is about to roll over in its grave and start kicking, probably starting Q2 - Q3 2015, in the form of disappointing corp revenue and further lowered expectations in forward guidance. "
Herve commented: "I believe the CPI hugely understates real inflation, mostly because of an "estimated" cost of rental."
We Nattered: "Nice piece Herve,
"I believe the CPI hugely understates real inflation."
The Fed firmly "anchors expectations" through econometric falsity and a duplicitous media narrative. Pay no heed to that man behind the curtain...
Alex Scagileri opines: "Sure....Government can "pick up the slack" by giving money to drug addicts I guess...or creating more of them."
We Nattered: The Happy, Horny, Skinny Drug... ask your Doctor if Wellbutrin is right for you. If not, talk to your local dealer/broker about Crystal Meth and futures in American Addiction Centers.
TF17 commented: "Productivity gains in recent years have flowed to capital, not to labor."
We Nattered: "As for the flow to capital, Bingo. The productivity gains are another falsity being utilized in an illusory econometric for the media narrative. The good paying labor intensive jobs were outsourced, lower paying service sector Mcjobs and part time jobs were substituted. Less hours worked, lower wages, less real income, less spending equated to "greater productivity". That cadaver or part of this zombie economy is about to roll over in its grave and start kicking, probably starting Q2 - Q3 2015, in the form of disappointing corp revenue and further lowered expectations in forward guidance. "
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