Saturday, April 16, 2011

The Talking Bears and inflation! Let them do the splainin! (Video)

The Talking Bears: Finally a source you can actually trust for the truth about inflation!

Inflation stated ex-food and ex-energy is a statistic that only works for corporate CEO's and Federal Reserve Chairman Ben Bernanke!

Every month the release of the CPI (consumer price index or prices paid in the stores) and PPI (producer price index or prices at the wholesale level) are important economic indicators and are very closely watched numbers. They tell us whether the United States is facing a period of inflation (rising prices), stagnant prices or deflation (prices going down).

Economists and bureaucrats

In yet another case of the "Ivory Tower" versus the reality of the streets, these inflation numbers are typically analyzed ex-food prices and ex-energy prices. Why? Because these prices, according to economists (the only profession of people who are wrong more than weathermen), are extremely volatile and therefore need to be removed so that the numbers make sense.

Regular Americans

The last time I looked these volatile prices have been going straight up, and are the only two numbers that the average American actually cares about. In a country where an enormous amount of families are on food stamps, unemployed, living paycheck to paycheck and just all around hurting, when will our leaders get it?

Washington just doesn't get it! Let New York Fed President William Dudley explain his version of "not getting it."

In a statement about 4:25 into the video, William Dudley, President of the New York Federal Reserve Bank says all you need to know about Washington.

To paraphrase, he said that inflation is not a problem, giving as an example the IPad 2. His point is that for the same price as the original Ipad the consumer is getting more speed and features.

The only problem is that in order to buy it the consumer will have to go without food for the family and gas in the car for a few weeks.

Let the Talking Bears do the splainin

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