Gold at $1782 is improving, too, but not as much as crude oil at $99.33 – only $0.67 to go to get to the magic $100!
We hope Mr. Bernanke doesn’t go nuts over this. Probably he won’t since the statistical geniuses in the federal government (Bureau of Labor Statistics), define the CPI in a little .pdf file of 45 pages plus 9 appendices. Briefly, they take out the “volatile” prices of commodities, like food and fuel. Only stuff we use every day. If that doesn’t work, they start taking out other “volatile” prices – like used cars.
Here is a little excerpt from the paper,
Both the CPI-U and the C-CPI-U target the U-population [All Urban Consumers is the “U” population]. The U-population, which was about 87 percent of the U.S. population in the 1990 census, covers households in all areas of the United States except people living in rural nonmetropolitan areas, in farm households, on military installations, in religious communities, and in institutions such as prisons and mental hospitals.
So, farmers, military, criminals and mentally ill are all lumped together. The urban focus is part of the problem with U.S. federal policies, in our opinion.
BTW – what did I tell you just a little while ago? Kodak is going down! Now, in a WSJ note, we read that Bill Miller [of Legg Mason Capital Management]Is Done Losing Money on Kodak. “Legg Mason’s Bill Miller has been a long-time owner and defender of Eastman Kodak. Now, even he’s abandoning ship.”
If you didn’t see it earlier, here is our Nov. 3 post on this subject for your own enlightenment.
And since we are referencing ourselves, here’s a little word we overlooked when we criticized Pres. Obama in a recent speech calling Americans “lazy.”
You see, in a press conference given in Hawaii during that convention, but like all the other commentators we missed the even worse blunder. You see, he mentioned being “in Asia” during a press conference there. Have you seen this anywhere? We could only find it on Breitbart. Where would be be without him? We saw Gov. Perry’s “oops” moment, and other bloopers by the Republicans, repeated in endless loops.
No investment lessons here, but just an admonition to try to get all the info you can without going crazy or having your head explode.