Saturday, November 24, 2007
Inflation redifined for Ron Paul and Ben Bernanke
‘Inflation’ is a word that has too many definitions. Confusion comes from trying to use this word in conversation when the meaning of the word is not concrete. Therefore I am going to follow the teenage mutant ninja turtle’s guideline and invent new words to crack this word into three.
Inflation has 3 definitions.
1- Money supply increase.
2- Overall price of goods and services increase.
3- Currency value decrease, or devaluation
The third meaning comes from the first two and is oxymoronic, for how can a decrease come from the word inflate?
My new words are:
2- Priflation, and
Cool words huh. Cowabunga dude
When the Federal Reserve chairman is being grilled by my favorite man in politics, Dr. Ron Paul, they are speaking of two different things. Mr. Smooth himself, Ben Bernanke attempts to dismiss Dr. No by stating things that he knows are not 100% true. They both use the word Inflation, but Dr. No is talking about monflation, while Mr. Smooth is talking about priflation; both of which they know produce demonvaluation. Dr. No believes that monflation creates demonvaluation and therefore priflation. Mr. Smooth believes that priflation is controlled by attempting to reduce demonvaluation through keeping interest rates rather than monflation as the criteria.
Most people don’t know it, but the priflation statistics that the Federal Reserve uses are not what you would think. In their “core” CPI (consumer price index), the only relevant data to them regarding priflation, they do not include things that you or I would. You know, things like food, gas, and the price of buying a house. I may not be a rocket scientist, but that is kinda like lying if you ask me. The inflation rate, according to Mr. Smooth (priflation), is 3%, but according to Dr. No (demonvaluation), it is 10%. For some reason, I believe Ron Paul more than Ben Bernanke.