In the last 30 years, a growing gap has become obvious between government reporting of inflation, as measured by the consumer price index (CPI), and the perceptions of actual inflation held by the general public. The numbers government pumps out today are the result of changes made in the 1990s when political Washington moved to change the nature of the CPI.

The cuts in reported inflation were an effort to reduce the federal deficit without anyone in Congress having to do the politically impossible which was to register a vote that would harm the image of Social Security. I further contend that inflation would be much greater if more money was flowing into tangible goods rather than paper investments and promises. For proof as to the real cost of inflation just look at the surging replacement cost resulting from recent storms and natural disasters. The article below delves into this issue.

brucewilds.blogspot.com/.../...tion-and-skews.html

Optimism that a new trade deal will occur between America and China has driven stock markets higher even as data continues to emerge confirming economies across the world continue to slow. It seems much of the current market fervor is based on optimism and hope falls into the category of "irrational exuberance" a term that Allen Greenspan has in the past used to describe unbridled enthusiasm. More on the realities being ignored in the following article.

brucewilds.blogspot.com/.../...oria-rooted-in.html

Sorry but I disagree. People are naive if they do not recognize the distinct advantage a state-driven economy has over free enterprise, at least initially. A bit predatory in nature, such a system can quickly exploit the weaknesses of its competitors. It is important we recognize China is a state-run economy based on a business model that is geared to expand by crushing the competition.

Subsidizing those companies working within its system in a multitude of ways helps it achieve this goal. Countries that export goods at slightly below cost in exchange for manufacturing jobs are not stupid they are predatory and we in America are their prey. The article below explores the ramifications of this.

brucewilds.blogspot.com/.../...business-model.html

The link under my prior comment failed, try this.

brucewilds.blogspot.com/.../...-ups-and-fedex.html

Two weeks ago it was Amazon is expanding into delivery with “Shipping with Amazon,” or SWA. Then it was about how Amazon was going full tilt into the grocery business, a sector that has always been challenging. Now it is banking or better yet "checking" which does not normally create huge profits. So again I ask, how does Amazon merit such a high stock valuation?

The idea Amazon is entering into this part of the business world should force any logical investor to question why their stock is trading at a PE 300 time future earnings. It is insane to think any "delivery company" can ever be worth such a high multiple. More on this bad idea in the article below.

http://Amazon To Compete With UPS And FedEx, Seriously?.html

China has been building ghost cities, Japan did not.

Nothing has really changed. America imports around five hundred billion dollars more from other countries every year than they export. This means we have a giant trade deficit, when we add this to our enormous government deficit it is easy to see that we are living far beyond our means. The Fed has been superbly entrepreneurial when it comes to Ponzi schemes or pseudo-economics hocus-pocus that has allowed the current situation to develop.

The Fed has yet to address a real exit strategy and end the massive and corrosive stimulus that the economy has come to expect. To make matters worse little has been done to address our structural problems and make America more competitive, this will massively thwart growth going forward. Debt does matter, more on why the Fed is trapped in a corner and their policies are destined to fail in the article below.

brucewilds.blogspot.com/.../...emains-elusive.html