yeah i read that. I have read other attacks on Williams' stuff. I love how their answers are always; 'its complicated' and very long winded explanations. Bottom line, take a gallon of gas, avg health premium, college tuition, loaf of bread, lb of ground beef etc a 10 yrs ago and now and do a yrly avg, no way that number is less than 2%.
Ahh, statistics... I must quote here my college statistics professor: "we must be very carefull with statistics. If one put his right foot into a bucket of liquid nitrogen, and the left foot into a bucket of a boiling alcohol, then, statistically speaking, one should expect to have warm feet" :rotflmbo: (I love when people have a good sense of humor about themselves, and their jobs)
But seriously: even if CPI (however measured), is not moving up fast now, could any one of these clever statisticians explain it to me, WHERE all that massive flood of money goes into, once created out of thin air? First: it fills the coffers of otherwise insolvent banks. Preventing them (temporarily....) from crashing, and from bringing prices further down - on the assets that were PREVIOUSLY inflated ginormously (housing, for example. Land, it's close proxy. Still ridiculously expensive, at least here in Ireland).
Secondly, all these funds are sloshing from one corner of the market, to another, in a frenzy to catch the next big wave, in a market that goes basically nowhere, as a whole - other than sucking a lot of that easy money. Just you watch it bottoming, if Fed said tomorrow "there will be no further easy money, party is over". So here is your inflation - first and foremost, "inflated" stock market, and housing market, that has been forcibly stopped from collapsing into "reasonably affordable" territory.
Third: what happens, when economy's output shrinks or stays flat at best (we do agree on that, Mr.s Statisticians, don't we?), and the money supply expands, so VASTLY as it did after 2006? Something, somewhere MUST go up in price, no? Or are we all of the sudden, making huge savings, sticking all these trillions summoned from nothingness, into our mattresses?
What a bunch of nonsense. Smear campaign at its best.