OT: Ray, how's your Bitcoin investment going?

[Pete Mckeon]

I appreciate your explanation/education but I can tell you from what I see that starting with 100k in expenes the total expeditures has increased more than 2 % per annum. I am in same houseshold so that is a constant except for taxes, electricity and upkeep. Medical for my first year of medicare, and having the new retirement from IBM HAS risen in double digit because we were lucky to have the taxable income.
That is not even counting extra funds spent because of 3500 you pay first for specific hospital I spent over $25k last year due to cancer deductibles. I can go into a lot more detail but all expenses for the year were more than a 2% increase. I am fortunate and did ok and also got retirement and maxed 401k. 'Out of pocket' costs per annum, I hope only increase to what they are and it has been more than 5% for me.
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I really feel bad for people in their 40s or 50s without a pension or did not MAX their 401k or savings. I do not know all the problems or answers for them BUT the middle class is being attacked and income is not growing as liked, except for a few small segments. This is just my irish opinion

Seen too many of them because i have triend unsucessfuuly to teach and convince them of how to plan for a retirement years down the road.

I have/had a mba in finance and bba in accounting:

Originally Posted by verticaldoug

Pete, CPI includes energy, food etc:

FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)
APPAREL (men's shirts and sweaters, women's dresses, jewelry)
TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)
MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)
RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);
EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories);
OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).


The inflation you feel is primary driven by high frequency purchases. So if gas at the pump, food prices are increasing (which they are), inflation feels high. However, less frequent purchases, (appliances, housing etc) may be increasing at a much slower rate. Hence the CPI looks low. For most people, rent equivalent, and energy are the two largest parts of the budget. For most of the U.S., housing has depressed the rent equivalent calculations helping to keep CPI low.

Chain CPI which is what you are referring to for SS Colas etc is a much nastier animal. Essentially the gov decides people can substitute down, so as prices go up, you will change your spending habits and buy cheaper stuff. Literally they count on your going from Banana Republic to the Gap to Old Navy eventually to goodwill. This is a nasty cycle. See Japan for details.

For as much as Paul Krugman gets bashed lately, you need to see his comments on 'Rent Seekers' to really understand what the elites are doing to the economy.

There is a turkish saying: If you hold the honey pot, you get to lick your fingers.