Crash Course: Chapter 16 – Fuzzy Numbers by Chris Martenson
Chapter 16 (Fuzzy Numbers): Dr. Martenson explores how inflation and GDP are measured, how their measurement has changed over years, and what that means concerning the integrity of these government statistics. Substitution, Weighting, Imputations, and Hedonics and their effects on calculating inflation and GDP are each examined. Dr. Martenson traces the social impact of these shady statistics, and finishes by showing how a dishonest determination of inflation further deforms an already flawed GDP calculation. www.chrismartenson.com
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Filed under: Inflation
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Thus your comparison does not add to this discussion.
I am very much enjoying this series!
Some of Dr. Martenson’s criticism seems unfair. After all, my $1,000 computer does much more than the one I bought in 1991 for three times as much. It has the Interwebs, for one, which gives me info in seconds that I had to spend a whole day in the library to find before!
The reason your modern ‘super’ computer costs a third of that stoneage machine of the early nineties is because 1991 was at the beginning of the ‘bubble’. Since then more and more people had the money, or so they tought they did, to buy a computer. The sheer number of computers sold in the years since, enabled the manufacturers to drasticly lower the prices while maintaining the huge profits.
feel free to correct me on this….
You have to take into account that if you attempted to maintain your systems level your computer would need to be replaced once every three years.
Many points in the video were. And you can go to the appropriate sites to confirm. Food and energy are no longer calculated. This has been stated numerous times in the media. And you can see substitution in effect when going to the farm Bureau. Try it.
Hedonics I’ve heard from other sources, but they are more difficult to confirm. Even without it, it’s clear using CPI to gauge seniors pensions is a clear disconnect from reality, as CPI does not properly measure inflation.
Why are they even using prices to calculate GDP, wouldn’t it make more sense to use sales volumes?
ME: “Hey steak is too expensive, I have to buy hamburger.”
Govt: “C,mon, you are still eating beef”
ME: “Wow now hamburger is too expensive, I have to buy horseburger”
Govt: “It’s the same, you are still eating meat”
ME: “Thanks Uncle Sam! I feel better.”
@LadyDrinkKing: but you still have to buy a computer. It is about money YOU spend. Most people don’t use a computer properly anyway!
An ounce of gold bought you fine Italian Suit 200 years ago and does so today.
The Solution to our problems is:
END THE FED-END THE FED-END THE FED-END THE FED-END THE FED-END THE FED……………
OMG
this is enough to choke an elephant. Our government is so out of control!!!
every time a company says buy one get one free…it is imputed that i paid for it?
every time i don’t pay rent on my house it is imputed i did? why not impute I SOLD MY HOUSE TO MYSELF and make me a much more profitable offer than renting
and what about rent to own how do you impute this as both a owner who receives rent and a renter who owns a house?
(5:10) no wonder we keep hearing that healthcare prices are rising so much faster than overall inflation… the “overall” numbers purposefully weight the healthcare portion to be much less of our budgets than it really is. the difference between the healthcare growth rate and the overall growth rate is distorted… the difference appears much larger than it really is.
Thank You SO much for all your sober work…
thats a step in the right direction, but by no means a solution to the misery in the world
Oh My Gosh!! You mean to tell me that politicians, bureaucrats and mainstream media lie to the people — spin the facts and distort the picture.
How does anyone honestly think the foxes guarding the hen house can be rehabilitated, or, replaced with true market businessmen aided by transparency. As opposed to political “businessmen”.
We’re creeping up on the Ultimate Solution.
This is extremely eye opening. Thank you.
Fupedworld…can you prove your statement?
What? So substitution effects don’t exist? Eugen Slutsky would be rolling in his grave! It’s used everywhere else in Microecon, why not here?
It’s funny how I don’t see leading economists out there (Mankiw, Krugman) shouting all of this.
Whenever a government can print money you inevitably come up with the situation where they will print more than they should. This comes despite best intentions. Politicians promise things to get elected and stay elected. Raising taxes is very unpopular, loans are always available, but inflation is nearly invisible (until it’s too late)
Governments should never have the ability to create money. People should be able to pick from competing private or commodity based currencies.
@sirellyn
Well were fucked six ways from Sunday so we might as well lie back and enjoy it.
At least we still have toasters.
want watch Crash Course in HQ and all episodes? then go:
TVFLAP . COM
BLS= BS
Great information. Kudos to Chris.