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Obama setting records!

Discussion in 'Politics, Elections & Legislation' started by Luckyman, Mar 21, 2011.

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  1. Luckyman

    Luckyman Active Member

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    US Cost of Living Hits Record, Passing Pre-Crisis High
    Published: Thursday, 17 Mar 2011 | 4:09 PM ET

    John Melloy
    Executive Producer, Fast Money


    One would think that after the worst financial crisis since the Great Depression, Americans could at least catch a break for a while with deflationary forces keeping the cost of living relatively low. That’s not the case.

    A special index created by the Labor Department to measure the actual cost of living for Americans hit a record high in February, according to data released Thursday, surpassing the old high in July 2008. The Chained Consumer Price Index, released along with the more widely-watched CPI, increased 0.5 percent to 127.4, from 126.8 in January. In July 2008, just as the housing crisis was tightening its grip, the Chained Consumer Price Index hit its previous record of 126.9.

    “The Federal Reserve continues to focus on the rate of change in inflation,” said Peter Bookvar, equity strategist at Miller Tabak. “Sure, it’s moving at a slower pace, but the absolute cost of living is now back at a record high in a country that has seven million less jobs.”

    The regular CPI, which has already been at a record for a while, increased 0.5 percent, the fastest pace in 1-1/2 years. However, the Fed’s preferred measure, CPI excluding food and energy, increased by just 0.2 percent.

    “This speaks to the need for the Fed to include food and energy when they look at inflation rather than regard them as transient costs,” said Stephen Weiss of Short Hills Capital. “Perhaps the best way to look at this is to calculate a moving average over a certain period of time in order to smooth out the peaks and valleys.”

    The so-called core CPI is used by the central bank because food and energy prices throughout history have proven to be volatile. However, one glance over the last two years at a chart of wheat or corn shows they’ve gone in one direction: up. And many traders say Fed Chairman Bernanke’s misplaced easy money policies are to blame.

    Over time, the Bureau of Labor Statistics has made changes to the regular CPI that it feels make it a better measure of inflation and closer to a cost of living index. It improved the way it averages out prices for items in the same category (e.g., apples) and also uses the often-criticized method of hedonic regression (if you're curious, you can learn more about that here) to account for increases in product quality.

    In 2002, the BLS created this often-overlooked cost of living index in order to account for the kinds of substitutions consumers make when times are tough. It is supposed to be even closer to an actual “cost of living” measure than the regular CPI.

    “For example, pork and beef are two separate CPI item categories,” according to the BLS web site. “If the price of pork increases while the price of beef does not, consumers might shift away from pork to beef. The C-CPI-U (Chain Consumer Price Index) is designed to account for this type of consumer substitution between CPI item categories. In this example, the C-CPI-U would rise, but not by as much as an index that was based on fixed purchase patterns.”

    “As the cost of living increases, we are headed toward a bigger problem with the slowing of housing permits,” said JJ Kinahan, chief derivatives strategist at thinkorswim, a division of TD Ameritrade. “As the staples start to cost more, this could lead to a quick slowdown in the auto and technology sectors as an iPad is an easy thing to pass on if you are paying more for your gas and food and need to cut back somewhere.”

    To be sure, it’s nearly impossible to get a perfect “cost of living” measure, and the BLS acknowledges this on their web site: “An unconditional cost-of-living index would go further, and take into account changes in non-market factors, such as the environment, crime, and education.”

    Still, states will be cutting back services drastically this year at the very same time they are raising taxes in order to close enormous budget deficits and avoid a muni-bond defaults crisis. So while it may be the missing link to a perfect cost of living measure, one can assume that Americans will be paying more for unquantifiable services such as police enforcement and education, but getting them at a lesser quality.

    Bottom line: The cost of living for Americans is now above where it was when housing prices were in a bubble, stock prices at a record, unemployment low and consumer confidence was soaring. Something has gotta give.
     
  2. bigk

    bigk TS Member

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    If the big eared prick would pay more attention to the above and less on trying to civilize the rest of the world there would be better times for everyone,including the rest of the world.Stupid moron who prefers to play golf and send his bitc* on holidays than look after those who he was elected to rule. Thinks he is some kind of king not a president. Time people woke up to this dictator and throw his black ass in jail where it belongs along with his bankster buddies.
    K
     
  3. Luckyman

    Luckyman Active Member

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    He still can't produce documentation that validates he is even a United States citizen!

    At the end of the day the economy gas prices and overall inflation is a way to insure we have trickle up poverty and overall instability! Make no mistake about it! This is what the Dems want because it justifies their BIG GOVERNMENT...Think about it....The worse the economy the more people that need to rely on the government the more potential voters they will get to keep the free handouts rolling! There are more people on gov assistance in one form than ever before in US history and it's only getting worse!! 1 in 3 houses are now upside down! Unemployment continues remain steady with no end in sight and instead Obummer is working on his handicap and taking vacations to Brazil etc. all in the name of foreign relations and all on the taxpayer dime! Every day this guy is in office I become more and more sickened by what I see and more worried about what type of America will be in the future for my 9 year old son!
     
  4. daddiooo

    daddiooo TS Supporters TS Supporters

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    Donald Trump publically called for his birth certificate on "The View" the other day and I thought they were going to have to throw a net over Whoopi Goldberg. She went into a complete hissy fit saying that Trump was racist and she'd never heard of a bigger pile of dog crap in her life. (no I don't watch the View, saw it on FOX)

    Apparently Whoopi stores her head so far up Barrys ass she can't see daylight.

    He is setting records.....the number of people he's pissing off is growing daily.

    Senators and oil execs are furious about him endorsing Brazils off shore drilling program and pledging $2 billion dollars of OUR tax money when they can't get a permit to drill here at home.

    He has become a 1 man wrecking crew with the Unites States in his sights.
    The fabric of our nation is unravelling before our eyes.
     
  5. Luckyman

    Luckyman Active Member

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    I saw the clips on Fox and all those worthless libs especially Whoopi were in a tizzy...As the audience responded favorably the queen B#@CH Barbra Walters tried to change the subject with little success....

    I like Trump...I Don't know if I want him as President but I'm sure he would beat the hell out of the clown we have now!
     
  6. likes-to-shoot

    likes-to-shoot Well-Known Member

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    Whoopi isn't the only one, look at Oprah. She gets that 'I'm the queen of the hood' strut every time Obama's name is brought up. I wonder if there are any similarities between th two of them?

    I wonder what ever happened to the gal that thought she was going to get a new apartment and a car after Obama was elected? lol
     
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