On Mon, 17 Mar 2008 23:45:40 -0600, Jon Elson
wrote:
Larry Jaques wrote:
This didn't dissolve the FDIC, though, did it? Our funds are still
insured, aren't they? Scary thought.
Insured as to dollar value, but not insured against loss of
buying power of those dollars. Check out what stuff costs
lately, it is a shocker. A car battery or several other items
seem to have doubled in the last couple years. Just got quoted
$182 for a rebuilt starter motor, AFTER the core trade-in.
I decided to open it up and lube the works instead! So far, it
seems to be working.
Jon
====================
The public now becomes aware of yet more governmental "book
cooking," specifically the systematic understatement of the CPI
[consumer price index], made possible by the continual
elimination of more and more categories in the standard "market
basket" of goods and services.
First they substituted "generic" products for "name brand"
products, then they eliminated "fuel," and then they eliminated
"food" from the "core inflation" data.
The problem is that just as removing the light bulb or putting a
piece of black tape over the warning light on your car's
dashboard doesn't fix the "low oil" problem, "cooking" the CPI
index doesn't change the actual rate of inflation [i.e. the
decline in the value of the dollar.]
The actual rate of inflation appears to be at least 2X to
possibly 5X the official rate, based on anecdotal evidence in my
area and the "free market" international exchange rate. [You
know we are in trouble when the dollar falls against the
Brazilian Real 2.10 R/$ in Mar 07 to 1.70R/$ Mar 08.]
http://finance.yahoo.com/currency/co...submit=Convert
This is a disaster for savers with dollars or dollar denominated
paper.
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).