[Rhodes22-list] Economics - More Good News - Except thefoundation

[Foy, Warren]

One comment:

"plenty of smart people on Wall Street to keep them
honest."



People on Wall Street honest?  An oxymoron?

Warren

-----Original Message-----
From: rhodes22-list-bounces at rhodes22.org
[mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Brad Haslett
Sent: Tuesday, July 17, 2007 6:49 PM
To: The Rhodes 22 mail list
Subject: Re: [Rhodes22-list] Economics - More Good News - Except
thefoundation

Ed,

Manufacturing inflation is measured by the Producer Price Index, which
dropped 0.2% in June.  I know that is hard to believe if you're in the
boat
business buying paint and tackle, but there are always niches who get
hit
and others that go unscathed. This is a gross oversimplification, but
the
PPI looks at the prices charged for finished goods.  One of the reasons
the
PPI has remained steady while input costs have increased is that
manufacturing efficiency has increased as well.  For small businesses
like
Stan's, you can't very well change your manufacturing methods and you
can't
make up the difference on volume.  I don't make these numbers up, the
BLS
does, and there are plenty of smart people on Wall Street to keep them
honest.  Now where is this market going?  I don't have a crystal ball
but it
has been a nice, long, sweet run.  Nothing lasts forever.

Brad

On 7/17/07, Tootle <ekroposki at charter.net> wrote:
>
>
>
> Brad:
>
> Apparently what is not showing up in the inflation is the devaluation
of
> the
> dollar in the international exchange rates.
>
> Your inflation rate is derived from the U. S. Dollar and changes
inside
> the
> U. S.  What Stan is finding that some of his hardware and line came
from
> overseas?  If he wants the same blocks on new or recycled Rhodes as he
> used
> to use they cost twice as much to him if the company is still in
business
> and still makes the same product.  For some unknown reason, this is
not
> showing up in inflation?  Believe me, it is there.
>
> The answer must be in the design of the inflation rate.  As you point
out
> it
> is done by government bureaucracy and it must have been designed to
save
> face for ...?
>
> Another product whose price has gone thru the roof is paint.  It is
oil
> based, even the water clean up versions.  While the costs of a gallon
of
> the
> best product have gone up 100% in the last five years, it does not
show up
> in the inflation rate.
>
> Believe me, there is something wrong with the inflation rate.
>
> Ask Captain Rummy if the costs of reroofing have changed in the last
> couple
> of years?
>
> Maybe production costs are not having the impact in the numbers
because so
> little is made in the U.S. anymore?
>
> Ed K
> Greenville, SC, USA
> attachment:
> http://www.nabble.com/file/p11658525/times%2B%25238.bmp times+%238.bmp
> --
> View this message in context:
>
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5
> Sent from the Rhodes 22 mailing list archive at Nabble.com.
>
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