Meaning of Real
Real means inflation adjusted. But what is the best measure of inflation?
Home Price Not in the CPI
Home prices are not in the CPI. They should be. Economists generally disagree with me, but what good is a measure of inflation that excludes key prices?
The CPI ignores housing prices, what corporations pay for health insurance on behalf of consumers, what Medicare, and Medicaid pay for healthcare on behalf of consumers, stock prices, bond prices, speculation in cryptos, and only looks at the prices of so called “consumer goods”.
Q: How relevant is the CPI as a measure of inflation?
A: Not very if at all.
The Fed has ignored those things at its peril.
The result was:
- A DotCom bubble and a DotCom crash
- A housing bubble and a housing crash
- An even bigger bubble now
- Western Australia has passed legislation authorizing COVID-19 officers to remove people from their homes and force them into a quarantine facilities.
- 97.7 Million Birds Are Already Dead As The Worst Bird Flu Outbreak Ever Sweeps Across North America And Europe
- The Collapse Of Rome 2.0 Incoming
- Multiple sources: Weird yellow light seen above Belgorod, Russia. What is it?
- PayPal goes full 1984 in November…
- Warning: the Fed Didn’t Pivot Yesterday… If Anything It Doesn’t Need to Anymore
- Banks are over leveraged 2 QUADRILLION dollars in derivatives. This will be the worst financial collapse EVER.
- Confirmation of a Totally Decimated Global Economy: Massive Rally in the Stock Market
- Moscow Says We’re Heading Toward Open War
- The seabed internet cable between Henningsvær and Svolvær in Lofoten, Norway has been broken.