From the New York Times
Looks like we are experiencing a really serious deflation.
Print faster Ben. Bail out those banks. Do whatever it takes. Save us!
This is from ShadowStats.com
Here is the Consumer Price Index calculated using the sames rules that were in place in 1990 before Daddy Bush, Slick Willy and Junior worked their changes on it.
We like the drop in gasoline prices. We'll like the deflation even more if and when it shows up in healthcare, food costs, tuition, electricity, insurance, appliances, and automobiles.
Until then, be happy and keep eating your government recommended Dog Chow.
We beieve we are seeing significant price declines in key commodities like oil and some building materials. Price and narrow money deflation is a natural phenomenon in periods of swift asset declines, as we had seen in 2002 before the Fed started their reflation which led to the housing and equity bubbles.
But to hold this out as an 'apples to apples' comparison back to 1920, which many will do because it either supports their econo-religious theories, or promotes an atmosphere favorable to the government interventions, is reprehensible.
“Depart from me, you accursed. For I was hungry and you gave me no food, thirsty and you gave me no drink, a stranger and you did not welcome me, naked and you did not clothe me, sick and in prison and you did not comfort me.' They answer, 'Lord, when was it that we saw you hungry or thirsty or a stranger or naked or sick or in prison, and did not care for you?' He answered, 'Truly I tell you, as you did not do it to one of the least of these, you did not do it for me.’”
Matthew 25:40-46