patrick.net

Reader says

tatupu70 says

Reader says

Especially since they do NOT include food or gas into calculations of the CPI?

I can't believe how many people keep restating obvious lies like this.

They DO include both food and gas in the CPI.

They also publish something called the core CPI where they take out volatile items to try to smooth out the wild variations that sometimes occur in commodities. Like when there's a drought in the Midwest. Or when there's political instability in the Middle East. I assume that's what you are refering to.

Core CPI
http://inflationdata.com/articles/category/inflation-2/quantitative-easing/

Reader

Glad you understand the difference now. Try to keep it straight.

tatupu70 says

Glad you understand the difference now.

I stand corrected on the above I meant to include CORE to the statement and will include it now so please cut your off the cuff arrogance over a single error as regards my understanding. Thank you.

Let's talk Core CPI is it not the Core CPI that is used by U.S. Fed Reserve's decisions about U.S. Monetary Policy? And do they NOT leave out food and gas and such when making such decisions? ??? And while we are at it let's get into the fractional reserve system (FRS) too!

As they say don't assume. I am not as ignorant as you thought.

It is all expained in a two word phrase TAX CREEP (look it up.)

Reader says

Let's talk Core CPI is it not the Core CPI that is used by U.S. Fed Reserve's decisions about U.S. Monetary Policy? And do they NOT leave out food and gas and such when making such decisions? ??? And while we are at it let's get into the fractional reserve system (FRS) too!

I don't know exactly which metrics the Federal Reserve uses when making decisions, but my assumption would be that they would weigh many, many data points. I think I've seen that they even look at purchases of men's ties and women's bras. I'm sure both CPI and core CPI are analyzed. And I'm also sure that they look very deep into both numbers--understanding why prices in each sector are either rising or falling.

To imply that the Federal Reserve policymakers are so lazy as to just use a single number in the analysis is beyond ridiculous.