In Economic News…

I love this:

A big drop in the cost of gasoline in July contributed to the smallest rise in consumer prices in eight months while industrial output posted a solid gain. (Seattle P-I)

When energy, housing and food prices were climbing meteorically earlier in the year, we were encouraged to ignore that and concentrate on “core inflation”, or the ISNB (Index of Shit Nobody Buys) - that market basket of key economic indicators that includes:

  • asbestos baby rattles
  • Knox gelatin
  • industrial floor sweeping compound
  • Ronco monocle repair kit
  • American-made automobiles

Meanwhile, the cost of stuff people can’t avoid buying:

  • health insurance
  • heating fuels (sure, it might be cheap in July, but check it out in January)
  • repairs to American-made automobiles that brothers-in-law give you when they buy a new Camry
  • that little peep-show down on First Avenue

rises relentlessly. Granted, houses might be cheap soon, but you’ll have to pay cash, and U.S. currency might not cut it.

8 Comments

  1. Thanks, Phil, you reminded me–I’ve got to renew my subscription to the Pravda.

  2. Land of the brave, home of the free…

  3. Phil:

    Comrade MarcLord - I’m not sure whether I’d put Pravda handbags in the CPI market basket, but then I’m not your typical consumer. Hi, and thanks for stopping!

    Dick - don’t tread on me.

  4. We’re actually having two prospective buyers come to look at our house today. I’m wondering which currency I should ask them to use, if one of them makes an offer. I can’t imagine anyone getting a mortgage loan in this market. I remember when the inflation rate didn’t include those pesky volatiles.

  5. The price of American crude hit an all time high and yet my gas prices dropped below $2.80 for the first time in many months. Amazing, apparently the oil companies were gouging us. Who would have thought?

  6. Phil:

    As a patriot and Eagle Scout, it is my duty to provide economic stimulus.

    May I ask what camera you use to take these beautiful pictures? Buying one will have the additional benefit of unloading my atrophying dollars and getting them into something useful. And it might take better pictures than my cell phone.

  7. Our old Benzes run on salad oil, thank the lard.

    Was that you I saw through my monocle entering the peep show as I was trying to enjoy my tea and crumpets across the street? I’m telling Mrs. Perils.

  8. Phil:

    Robin - I’ll have to catch up with you and hear what kind of experiences your prospective buyers are having. Good luck!

    Mike - looks like you need a salad oil refinery on the east coast.

    Marc - I’m humbled by your sense of sacrifice. The camera I use is a Canon S3 IS. It has a 12x optical zoom, 6 megapixel. It’s a nice compromise between size (smaller than a full-blown SLR) and features. I don’t think I’d carry anything larger on my walkabouts. The thing that sold me on it was its ability to take extended video (up to 1 gigabyte at a time) with a nice stereo pickup.

    Babette - no wonder salads are so expensive at eastside restaurants!