Random thoughts...

Now for my part two on inflation. Comparing the old CPI models from the 1980s and 1990s to the current CPI model. Both the old and new CPI models are wrong (see part one). One model is arguably less wrong than the other. Which one is less wrong? The old CPI model from the 1980s and 1990s or the new CPI model? https://i.ani.me/0327/2911/grey.jpg I have often heard the argument that the government changed the way inflation is calculated to hide inflation. Hence, a conspiracy! Well, let’s go straight to the source. To the U.S. Bureau of Labor Statistics (BLS). From the inception of the CPI in the early 1900s. There have actually been 13 major revisions to the CPI. The revisions from the 1980s and 1990s are one of many revisions before. Why is the CPI constantly being updated? Consumer spending changes over time. People from the 1920s are not buying the same thing as someone from the 1980s. People from the 1980s are not buying the same things as someone from the 2020s. The CPI must update to adjust to constant consumer changes in spending. Otherwise, you will get extremely false readings on CPI. For example, electronics was once not part of CPI readings. BLS updated the CPI to include consumer electronics. The reason for constant CPI revisions is because consumer spending changes over time. The CPI is constantly updated to reflect those consumer changes. https://i.ani.me/0327/2911/grey.jpg Older CPI models do not consider very well the changes in consumer spending. For example, if the price of meat goes up substantially. What do people naturally do when price increase substantially? People adjust their spending. If the price of steak goes up by 20%. There is a very good chance that they won’t buy steak anymore. People will buy another piece of less expensive meat. Most people will adjust their spending based on prices. Old CPI models assume that people do not adjust their spending. In other words. From the steak example. With rising prices. The old CPI model assume that people will always buy steak regardless of the price. Which is simply not true. People tend to adjust their spending based on price. Hence the old CPI models leads to higher inflation numbers, because it assumes that people always buy steak regardless of price (the basket of goods is permanently fixed). The current CPI model does a better job at adjusting the basket of goods. Based on constant shift in consumer spending. https://i.ani.me/0327/2911/grey.jpg The most controversial change from the 1980s and 1990s CPI models is on home prices. One of the main reasons why CPI was a lot higher in old CPI models. Is because it took into consideration house prices. While the new CPI models does not consider house prices, but an equivalent rent that the homeowner pays. You may say. “That sounds wrong. Home prices should be included in CPI.” It may sound reasonable to include house prices in CPI. But it actually isn’t. Here is the main reason why house prices are not included in the current CPI model. Most mortgages are fixed rate. Let’s assume that someone’s house cost 250k and then it goes up in value to 500k. What happens in a fixed rate mortgage payment if the price of the house doubles? As the name implies. Fixed rate means a stable fixed rate payment. Fixed rate mortgage payment varies little over the time of the loan. Fix rate mortgage payments will not double, if the price of the house doubles in price. People are not spending more on their mortgage cost, if the price of their house increases. Hence the old CPI overestimated inflation. The old CPI assumed that increase house price meant an increase in mortgage payment. Which is simply not true. A fixed rate mortgage is inflation protection. It doesn’t really matter how much everything else goes up in price. Fixed rate mortgages payment varies very little over the time of the loan. For that very reason the new CPI models took out house prices. Because the old CPI model overestimated inflation caused by rising house cost. https://i.ani.me/0327/2911/grey.jpg Someone could literally write an entire book on all the CPI changes. I could be here all day describing all the changes to CPI. Although the current CPI model is better than the older CPI models. The current CPI models is still not an accurate model for inflation. Both the old and new CPI models are wrong. Both the old and new CPI model suffer from the same problem. Both are scalars, not fields. A gradient field better describes the rate of inflation. Because a gradient inflation vector field describes inflation rate changes on location. As described by Eric Weinstein and Michael Saylor. Analogous to a temperature map. More red areas mean higher temperature. More blue areas mean lower temperature. Hence on an inflation map. Higher inflation means more red areas. Lower inflation means more blue areas. https://i.ani.me/0327/2911/grey.jpg https://i.ani.me/0336/9979/cp1.jpg https://i.ani.me/0336/9983/cpi2.jpg https://i.ani.me/0336/9987/cpi3.jpg https://i.ani.me/0336/9991/cpi4.jpg https://i.ani.me/0336/9995/cpi5.jpg https://i.ani.me/0336/9999/cpi6.jpg

Enuf of dat, bacc to shitposting https://c.tenor.com/Ftfa-ehSIs4AAAAM/miyako-hoshino-wataten.gif

Man im gonna miss skeleton knight in another world, was just some dumb rpg fun. I kinda wanna play a game similar too it where its just good vibes and exploring while being OP. Maybe Dragon quest 11 would be a good start

who makes chili and forgets the cumin. whole pot, ruined. apologize to those ingredients right now. https://c.tenor.com/ApLzDAqb65YAAAAM/being-angry-be-like.gif

This websites has a error warning Someone mind fixing that or like ?

I've seen that for the last couple days. The message claims the site is not a secure connection and is automatically blocked unless I go under advanced settings to force a connection. It says Maiotaku doesn't provide adequate information when attempting to connect.

Broodwich https://youtu.be/YHvCVqnyfwI

Why yes my youtube overlords. I would like to know about p0rn economics https://www.youtube.com/watch?v=nF0tze2JHNE