by A swedish kind of death
Thu Oct 11th, 2007 at 09:18:53 AM EST
I saw this in todays Salon:
Not new, but worth repeating http://dailypaul.com/node/2406
Printing more money is the Fed's typical answer, but we are on the verge of runaway inflation. We have printed so many dollars now that we are at parity with the Canadian dollar for the first time since 1976. Since the Fed stopped publishing M3, which tracks the total supply of dollars in the economy, we can't even be sure how many dollars they are creating. Reported inflation is around 2%, but the method for calculating inflation changed in the 1980's, largely at Mr. Greenspan's urging. Private economists using the original method find actual inflation to be over 10%, which matches more closely the pain consumers in the real economy feel.
It poses some questions:
- Did the way of calculating inflation in the US change in the early 80'ies?
- What has the inflation been in terms of the old standard? Or what was the inflation of the 70'ies in terms of the new way of calculating?
- Is inflation even calculated the same way in different countries?
Promoted by Colman
Socratic Economics is a series of posed questions in the effort of understanding economics. Previous entries:
Socratic Economics I: Why GDP growth above all else?
Socratic Economics II: What is Money? Socratic Economics III: Is full employment possible? And how?