Consumers do consume assets. If there are 10 gold bars in a shop but they are all purchased by others before I can make the store. Are you telling me they haven't been consumed? Inflation is question of supply.
If some tycoon comes to Melbourne and drops trillions of dollars through out the city. And in two days the shop shelves are empty of most goods and every house has been sold, are you saying that inflation only effects the non-durable goods?
Tosh! The purchase price of a new home was included in the CPI up until then and removed under the Howard government. That is a fact, go ask Chris Joy.
As I recall it was to comply with international accounting standards.
Rent is certainly a better proxy for housing than land.
Any expressed market opinion is my own and is not to be taken as financial advice
As I recall it was to comply with international accounting standards.
Rent is certainly a better proxy for housing than land.
No it isn't. Because typically when house prices inflate, rent remains stable and visa versa. So there's no way of getting an accurate annual inflation rate and reporting on the RBA website that way.
Cherry picking the goods is a way of manipulating the CPI. If a pocket calculator was $395 in 1971, does that mean there has been deflation for 40 years?
doh! No it isn't. Because typically when house prices inflate, rent remains stable and visa versa. So there's no way of getting an accurate annual inflation rate and reporting on the RBA website that way.
Cherry picking the goods is a way of manipulating the CPI. If a pocket calculator was $395 in 1971, does that mean there has been deflation for 40 years?
We were asked what our view was on this subject. I have expressed my view, and you have expressed yours.
Why you feel that you should beat everyone into agreeing with you is beyond me. It's not necessary to have a consensus.
Any expressed market opinion is my own and is not to be taken as financial advice
So there's no way of getting an accurate annual inflation rate and reporting on the RBA website that way.
Another one that thinks the RBA calculate and report the CPI...
Quote:
Cherry picking the goods is a way of manipulating the CPI. If a pocket calculator was $395 in 1971, does that mean there has been deflation for 40 years?
What's included in a 'basket of goods' needs to continually change. How many people purchased, or wanted to purchase a pocket calculator in 1971? If it was to be included in 1971 it would have almost zero weighting. A pocket calculator would have almost zero weighting now as lots of other devices do the job (phones, pc's etc)
Another one that thinks the RBA calculate and report the CPI...
Did I say calculate it? I said report it on their website.
Quote:
What's included in a 'basket of goods' needs to continually change. How many people purchased, or wanted to purchase a pocket calculator in 1971? If it was to be included in 1971 it would have almost zero weighting. A pocket calculator would have almost zero weighting now as lots of other devices do the job (phones, pc's etc)
All of which matters squat, because it is arbitrary. "basket of goods" = slaves wages.
Milton Friedman said look at the money. Only one thing and one thing only means anything in relation to inflation is the quantity of money, because it is the synthetic trade good that determines price.
The inflation rate for the past 20 years has averaged 5 to 5.5% pa. Double what the slave ration index tells us!
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
There are several problems with the CPI. Firstly, if you look at the technology component it is always -ve because they claim that improvements in the speed of computers means that you're getting more for the same price. The CPI has failed to take into account that people now pay for mobile phones, internet every month. It doesn't take into account the fact that we pay for toll roads now and often ever increasing fines. So the basket of goods has failed to keep up with modern times.
All of which matters squat, because it is arbitrary. "basket of goods" = slaves wages.
Milton Friedman said look at the money. Only one thing and one thing only means anything in relation to inflation is the quantity of money, because it is the synthetic trade good that determines price.
The inflation rate for the past 20 years has averaged 5 to 5.5% pa. Double what the slave ration index tells us!
The 'basket of goods' represents that which is used by wider Australia.
I disagree inflation has been 5% for 20 years. There's more to the story than printed money.
peter, why wouldnt they use land price increases??
it is real, and a major cost to the average person
i think it was a sneaky attemot to hide inflation
Land buying is not an everyday thing and rent is much more real to use in inflation measures. Since it was removed land prices fell for many years so if it was all about lowering inflation statistics they would have put it back in.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy