< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: Modern Day Misanthropes

Wednesday, June 14, 2006

Modern Day Misanthropes

That's my new name for inflation deniers. Recently I've had some meetings with several of them. Some so slippery they almost won't even admit that inflation exists at all. And while the goal of today's inflation deniers appears to be primarily a "save the status quo" sort of goal, in truth, they simply hate humankind. They mistrust the basic principle of economic liberty upon which this country was founded, and instead, believe they are the ones who should determine how much of your personal fortune should be melted away by government fiat. I'd call them communists, but some of them would probably appreciate that, so I'll call them misanthropes.

Stefan Karlsson at the Mises Economic Blog has an interesting post on the latest strategy of inflation deniers: they are now proposing a "core" core inflation instead of just looking straight in the ugly face of today's CPI. While I think Stefan's previous article on the fallacy of "core" inflation misses the whole point, which of course is not that inflation ex food and energy is somehow more important, but mainly that inflation ex food and energy shows the rate of supply shock pass through into the broader economy, this quick article lands the hammer flush on the head.

Note of course, he again uses the same misleading bias, even though his overall point is well made. The higher rents are not merely a result of higher land prices and higher rates. While that's obviously a good chunk of it, the steepness or quick acceleration in rent prices (which is the real problem) is catalyzed by the quick acceleration in cost per unit rented. And there is where you see the nasty commodity picture take hold.

Anyway, another recommend from me. I've been busy, as it seems most of you have been as well, and I'll keep posting as time permits.