Comments on: Using Treasury Bond Yields to Check in on Inflation! http://dqydj.net/checking-in-on-inflation/ The Intersection of Economics, Politics, and Personal Finance Thu, 09 Feb 2012 17:28:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: PKamp3 http://dqydj.net/checking-in-on-inflation/comment-page-1/#comment-795 PKamp3 Sat, 06 Feb 2010 19:08:46 +0000 http://dqydj.net/?p=1070#comment-795 Absolutely true, not to mention that lower inflation means that the securities this data is based on, "TIPS", is worth less. Maybe the article is better titled, "Checking In On What The Market Believes The Government Will Report Inflation As" ? Absolutely true, not to mention that lower inflation means that the securities this data is based on, “TIPS”, is worth less. Maybe the article is better titled, “Checking In On What The Market Believes The Government Will Report Inflation As” ?

]]> By: Bret @ Hope to Prosper http://dqydj.net/checking-in-on-inflation/comment-page-1/#comment-793 Bret @ Hope to Prosper Sat, 06 Feb 2010 06:57:50 +0000 http://dqydj.net/?p=1070#comment-793 I don't trust the inflation statistics from the Treasury Department or the Fed. I think they have an incentive to underestimate the rate of inflation, based on the trillions of dollars of bonds and the COLAs for Social Security and welfare. They have purposely changed the way they calculate inflation to reduce the number. For example, the 4% rate projected in 2008 would have been well over 10% if calculated the same way they did up until the 80s. I think the real rate of inflation is much closer to 5% than the 2% they have been claiming. .-= Bret @ Hope to Prosper´s last blog ..<a href="http://feedproxy.google.com/~r/HopeToProsper/~3/I-CdQ1lru74/" rel="nofollow">Investing in a Shaky Market</a> =-. I don’t trust the inflation statistics from the Treasury Department or the Fed. I think they have an incentive to underestimate the rate of inflation, based on the trillions of dollars of bonds and the COLAs for Social Security and welfare.

They have purposely changed the way they calculate inflation to reduce the number. For example, the 4% rate projected in 2008 would have been well over 10% if calculated the same way they did up until the 80s.

I think the real rate of inflation is much closer to 5% than the 2% they have been claiming.
.-= Bret @ Hope to Prosper´s last blog ..Investing in a Shaky Market =-.

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