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Thanks cheif you also appeared second last day before friday was above to beging next day.

Thanx

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when you think you are right,you should have reverse those trend when more people are coming to vancouver.instead people should be leaving from Vancouver if our city is expensive,inflation is higher or counter tops are expensive,people should not be coming to Vancouver.easy that way

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Do you remember that song bye-bye-my friends good bye,but you brought me back from vhb.than last time when you say”satv is real our user got confused,hey every body solipsist mean to say real is true in sense of commentary,and Solipsist I also congrats you to provide fair representation and let me pour my engrish here.finally I wanted to say people who were in affordable situation should have taken advantage instead some body else buy before them,and sell them later they should have done that.

for all your life all the best Solipsist.
heartly thankful to you.
satv b4sat@yahoo.com

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I appreciate your hard work to run lots of issue to understand fundamental,and tonz of issues through the term really appreciate that.
your site provided us very big plate form to put our thoughts in the thread.more than two year of hard work, I hardly can express my thanks in words.
wish you all the best for your future hope you full fill all of your dreams.

your site has provide very fair representation for all type of induviduals not just one sided thought.

heartly thanking you,
satv- b4sat@yahoo.com

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Well, my thought is that they underestimate the risks of low probability catastrophic events. I mean, why not cancel your fire insurane and pocket some easy cash? Free lunch? Hell no.

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In addition, for whatever reason the classification within the index changes… ie: fresh fruit could mean a whole wack of different things such as 2kg’s of red delicious apples or 3kg’s of spartan’s…

I said:

But the classification had never changed. What had changed was that fresh fruit of 20 or 30 years ago isn’t classified the same as fresh fruit of today. The definition of fresh fruit means fruit devoid of artificial means of cultivation and the use of foreign insecticides, aka organically and manually grown fruits. They actually taste a whole lot better than fresh fruits cultivated offshore and imported in by modern means!! But these fruits cost a whole lot more. For health reasons, would you want to consume organically grown and fresh fruits or chemically grown? Some people puts a high price on their own health you know. I do, but do you?
Organically grown fruits is a big and growing industry, but I think their prices are muted by cheaper and less quality imported fruits, so yes, the index can be skewed. That’s why I use it as a reference.

Optimus said:

The justification for changing the formula for calculating the CPI is that as prices rise, consumers switch from higher priced products to alternatives that are more reasonably priced. Thus, the CPI formula should reflect this by weighting higher priced products that have less demand and place more weight to those cheaper products that have higher demand.

I said:

But these demand changes were in part made for us, NOT BY US. You see, we all keep saying that we support domestically made products, but rarely do they put the money where their mouth is. Case in point were with domestically made socks sold through Woodwards’ house brands. Those were made by mills in Vancouver, BC. They are not closed. 20 to 30 years ago, most electronic and consumable goods were made from their country of origin. Nowadays, the same brands are made offshore.
Take Jantzen swimwear. They had a licensed mill in Vancouver, BC, Canada since the 1920. Survived through the great depression. BUT it did not survive the great modern price deflation. So, it was closed in the late 80s. Same with mills for Arcteryx and mills for Serratus! These are not cheap brands as you might want to imply.
They are good brands. And curiously enough, when they switched to Asian mills, the prices reflect it too. My Serratus Canadian jacket of 15 years ago is “MORE” expensive than the current Chinese made of the same genre jacket. Same with Arcteryx. Same with computers and digital cameras of Canon and Nikon. Components in them rarely are made by Hynix of Korea, Texas Instruments or National Semiconductor of the great US of A. They are all licensed Chinese, Korean, Taiwanese, India or Indonesia subs.
The recent Mattel scare with their Chinese made dolls containing lead paint is not limited to just Mattel. Little do you know that other products that use the same paint on laptops and cameras were also secretly recalled. Or maybe not. Remember, don’t chew on your laptop or camera.
Makers are willing to do everything to keep prices low and profits high. Why? To keep this imaginary CPI index as low as you can.
But, this is like comparing apples and oranges because goods made today are simply of a different quality and genre of the past!

If you want to compare apples with apples, you need to find a comparable domestically made item of the same genre, which is not easy to find. It’s all relative.

You are right in saying that consumers will make alternative choices based on price alone. Stores like Wal-Mart supports this. But there is a grass root movement to stop that with short movies like China Blue that showcase the exploitation of Chinese workers in sweat shops. As long as you buy stuff in Wal-Mart, you are supporting these shops no matter how these guys massage these index numbers or corporate hedge hogs excuses that they are actually trying to help these Chinese become wealthier through the free market economy. But we are all adults. We make choices, sometimes not the best.

Optimus said:

And that is why I am saying energy and food is excluded from the CPI because they do not include “reality” in the calculations.

I said:

It’s interesting that you said that, because during the interview between Alan Greenspan and Charlie Rose about his book, the Age of Turbulence, he said quite the opposite. He said the Gulf War was really about oil and that, if the major industries were deprived of energy, there would be total mad chaos and rampant inflation.

Another thing you lacked mentioning is that, all the trinket items we buy today were made by people and machinery that need food and energy to power them. People need food in a form of complex carbohydrates, protein and fiber, whereas machinery needs electricity.
I mentioned China in my earlier messages, but it seems you didn’t get my message at all or did not really understood it too well.
You see, China’s inflation is very very high, much higher than us do.
So, it is not inconceivable that if they have a high rate of inflation, goods made there and exported will also carry a high rate of inflation? But isn’t it not the case. The currency for one is keep artificially low, but what you don’t realize is that and is quite the norm in Asian factories is that, food and shelter are provided in a subsidized form. Energy consumption is regulated by not relying too much on modern machinery but rather more on manual labour in which China has an abundance of. In the Chinese movie, “The CEO”, which was actually shown in Vancouver subtitled about a couple of months ago about the Haier Group’s early struggle exemplified this.

Before modern machinery came to be, we were highly labor dependent. We don’t even have a strong dominant textile industry anymore. Even the auto industry is beginning to suffer the same fate.

Our CPI rate is conceived by policy makers to follow a path of least resistance. We all accept a mild 2% inflation rate to be the norm. We all know that this is sometimes impossible to achieve without some external factors’ help.
We all make choices, so that’s why we usually don’t agree with the CPI’s status quo.
Personally, I don’t believe with all these hogwash government explanation because our inflation is caused mostly by fiat money. It always had since the 1914.

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There are no “free money” trades.

Period.

Full stop.

Carry trades have relatively low risks percentage-wise, but they only make real money by running at very high levels of leverage. They are a classic “everything is great! until it isn’t…” position as we’ve seen with numerous hedge funds over the summer – and they are ideally suited for use with Other People’s Money.

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Rather than selling when the market is good, they plan to sell when it’s a good time for them.

Problem:

They will all try to sell when the demographic, economic, and finance, conditions will be at its worst in decades.
The rich kids from Kits have all purchased, with the help of mom and dad, and cheap teaser rates.
The new immigrants just don’t make enough money working in retail and tourism.
The Fed is so concerned that it is willing to take steps so drastic; it almost seems they are taking advice from economists who ran Argentina and Russia into the ground.

Tick Tock, Tick Tock

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http://tinyurl.com/3cw8zl

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VANCOUVER
*a couple with children include married or common-law 28.53%
*a couple include married or common-law without children 25.74%
*one person house holds 28.41
*other house hold types 17.32%

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Well apparently you do, so fill me in Jimbo. Please explain how the carry trady offers free money without strings.

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Yes, it is unexpected inflation that is the problem. The problem with unpredictable inflation is that it increases the uncertainty for long term lenders and borrowers. As long as it is stable, and low enough that the hyperinflation isn’t a concern, it it is not a stealer of wealth, but a zero sum game. And the more stable it is, the less redistribution.

Back to the low long rates, I think the risk of a deflationary spiral is priced in.

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Sorry it was not intended to be confrontational, I just wasn’t sure which one you meant to be true.

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Regarding inflation – it would seem the actual inflation number is far less important than having a more or less stable, predictable inflation number. 1% – 3% – 5% -8% – whatever – so long as it remains stable.

They’re all just zeros in a computer somewhere anyway…

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Well, which is it then? And please note that I said “inefficiency” not “danger”, these are not necessarily the same thing.

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Thats what I like to hear, for best place life is expensive,
Vancouver is worlds best liveable city.more and more people want to live here,no wonder how high this city can go.so far from 2001 to 2006 Vancouver population increased by 1,29,152.00,and countinue to come ever after regardless type of counter top,kitchen,bathrooms and many more future like cost of living etc,etc.

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The carry trade is a classic derivatives trade. It cannot be both “free money” and a danger of “biblical proportions” at the same time.

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that cost now: $1,861.67 in 2007
Per cent change: %1,761.67
Number of Years:93
Average Annual Rate of Inflation/ % 3.19
Decline in the Value of Money:
CPI for first year(Aug 1914) 6.0
CPI for second year:(Aug 2007) 111.7

oh my…….

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