BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow...

BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? The above sentence may seem shocking to many, but before we proceed we must agree on a definition of inflation. The definition of inflation that I am using is this: Of those 10 points, only the last one pertains to US inflation. If someone can tell me to what extent oil is rising because of monetary printing or expansion of credit in the US, then we can talk about oil in terms of inflation. Since this cannot be done, it is impossible to measure the price rise in oil effect here is very important. One must put the horse in front of the cart to talk about inflation in any meaningful sense. The same applies to copper, grains, and other commodities. For example: Grain shortages in Australia, drought, pestilence, hurricanes, and bad governmental policies in ethanol do not constitute inflation either. Nor can the Fed do anything about any of those. However, that does not stop the Fed (and everyone else) from talking about the price of oil and grains as if the rise is due to or even sillier yet, going to inflation. Nor does it stop the Fed from talking about a whole lot of other things that cannot properly be measured either, such as capacity utilization and the CPI. The one thing the Fed should discuss is the only thing the Fed does not discuss: An increase in money supply and credit. In effect, the Fed puts the cart in front of the horse then completely ignores the horse. This is on purpose. It's in the Fed's best interest if people do now know what inflation is. The sad result is we have a monetary policy that discusses everything under the sun but money. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.