Sounds vaguely familiar

Today in the Wall Street Journal:

The consumer price index reading that triggered Wednesday's selloff is a lagging indicator, after all, the kind that tells you inflation is here only after it has already arrived.

Comments

[ny patriot]

uh Tom, doesn't all economic data then fall under that type of generalization then? Besides consumer confidence, and the occasional business survey about future expectations (like yesterday's Phiiadelphia Fed report) all data is just a reflection of what happened YESTERDAY which does not necessarily mean it will occur TOMORROW as well.

Sorry to have taken your self-"atta'boy" away from you.

[Batten]

...ain't just economics...

" No amount of sophistication is going to allay the fact that all your
knowledge is about the past and all your decisions are about the future. "

{-- Ian E. Wilson}

[Tom Bowler]

Well said, Batten. The point of my post and the point of my remark in the sidebar is that inflation is a monetary condition. The rise in consumer price index indicates a rise in the supply of money relative to actual wealth that money buys. After the fact.

[Dan]

Take a look at the price of gold soaring.

THAT indicates people are looking for PERMANENT value.

And it's a real-time indicator.

The economy roaring DESPITE the drag upon it by the price of crude, the price of gold soaring, add it up............ I'd say it's an indication of serious inflation problems.

Not to mention, Steve Forbes said as much on Fox News.