The results of Obamanomics

[Bacon King]

Inflation Actually Near 10% Using Older Measure

Tuesday, 12 Apr 2011

By: John Melloy
Executive Producer, Fast Money

Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

http://www.cnbc.com/id/42551209

This article is far too full of hype.

Looking at the article's source, you'll see pre-1980 CPI methodology has placed the inflation rate above 8% since 1996, excepting only 2009. If anything, this means that US inflation has returned to a "healthy" level as it finally gets out of the recession.

[Bacon King]

Inflation Actually Near 10% Using Older Measure

Tuesday, 12 Apr 2011

By: John Melloy
Executive Producer, Fast Money

Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

http://www.cnbc.com/id/42551209

This article is far too full of hype.

Looking at the article's source, you'll see pre-1980 CPI methodology has placed the inflation rate above 8% since 1996, excepting only 2009. If anything, this means that US inflation has returned to a "healthy" level as it finally gets out of the recession.

Spoken like a true follower of Obamanomics.

"Healthy" inflation?!?  ROTFLMAO

You really should emulate Obepo in style (you already do in substance).  He is at least comical.

Do you understand basic economics? An increase in inflation necessarily occurs when the aggregate demand curve shifts rightward, i.e., what happens when the United States gets out of recession. And for the record, the current inflation rate (2.1% under current definitions) is right at the lowest points that it reached under George W. Bush's presidency. Just saying.

[Bacon King]

Apparently you don't have any conception of economics.

"health" inflation.

You are hysterical.

Do you not understand economics? Sleep through the lesson on the Phillips curve?

[Bacon King]

Haha, collectivist nonsense? Whatever you say.

Since it seems to be more to your fancy, let's explain it in terms of Monetarist Theory: Milton Friedman's K-percent rule. Studies in the Quantity Theory of Money, 1956. Yes?

Very jealous of the Mises autograph, btw.

[Bacon King]

Haha, collectivist nonsense? Whatever you say.

Since it seems to be more to your fancy, let's explain it in terms of Monetarist Theory: Milton Friedman's K-percent rule. Studies in the Quantity Theory of Money, 1956. Yes?

Very jealous of the Mises autograph, btw.

You really should read more carefully.

Milton Friedman was an exponent of consistent monetary policy, NOT an proponent of inflation.

Exactly. Basic monetary theory states that the money supply should be increased at a constant, steady rate, tied to the long-term average GDP growth, completely ignoring the business cycles. Now, if average long term growth is 3% per year but the economy's in a boom and not growing, what will happen? Short term inflation! And monetarists do recognize that there is still a short term trade-off between inflation and unemployment. So, in summation, basic monetary theory as advocated by M. Friedman directly implies that an expected level of mild inflation ought to be occurring in an economic bust. Nothing countercyclical or intentionally orchestrated by the central bank, mind you, just a natural byproduct of Monetarist philosophy.