Comments on: Why do people believe one of the dumbest, most flawed and deceptive measures of economic conditions in making their investment decisions? http://www.theundergroundinvestor.com/2006/09/16/a-people-are-like-sheep/ The definitive investment blog for investment news not discussed in the mainstream media Tue, 06 Jan 2009 21:59:05 +0000 http://wordpress.org/?v=2.7 hourly 1 By: J.S. http://www.theundergroundinvestor.com/2006/09/16/a-people-are-like-sheep/comment-page-1/#comment-91 J.S. Wed, 27 Sep 2006 02:37:22 +0000 http://www.smartknowledgeu.com/blog/investment-psychology/15/a-people-are-like-sheep/#comment-91 Good point Spencer. Thanks for chiming in! In fact, I do think we will be approaching hyperinflation and that it will catch most off guard. J.S. Good point Spencer. Thanks for chiming in! In fact, I do think we will be approaching hyperinflation and that it will catch most off guard.
J.S.

]]> By: Spencer Hall http://www.theundergroundinvestor.com/2006/09/16/a-people-are-like-sheep/comment-page-1/#comment-89 Spencer Hall Tue, 26 Sep 2006 15:26:02 +0000 http://www.smartknowledgeu.com/blog/investment-psychology/15/a-people-are-like-sheep/#comment-89 The low levels of inflation (CPI) currently being reported, have been statistically exaggerated by the present practice of calculating the rates of change in terms of a base one year earlier, rather than from the base period of the index/market basket (currently 1982-84). The base period when I started driving was 1967 (1967=100). The calculation rationale stems from indexing substantial portions of the federal budget to the CPI, etc. In terms of the 1967 base year prices we are experiencing very substantial absolute increases in current prices. If we go back far enough with the base year some people might conclude we are approaching hyperinflation. The low levels of inflation (CPI) currently being reported, have been statistically exaggerated by the present practice of calculating the rates of change in terms of a base one year earlier, rather than from the base period of the index/market basket (currently 1982-84). The base period when I started driving was 1967 (1967=100). The calculation rationale stems from indexing substantial portions of the federal budget to the CPI, etc.

In terms of the 1967 base year prices we are experiencing very substantial absolute increases in current prices. If we go back far enough with the base year some people might conclude we are approaching hyperinflation.

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