It turns out we're all wrong about "inflation" - GDP deflator vs. PPP vs. CPI

Good discussion of the difference between "inflation" and "purchasing power" as used in economic statistics, over at Naked Capitalism. Be sure you read the comments as well.

It turns out when pointy-headed economists and bureaucrats say "inflation", it doesn't mean what you and I think it does. Stupid us! We're really concerned about "purchasing power."


G8 Boys State the Obvious - Offer No Real Solutions

NYTimes reports on the G8:

One item not discussed, despite wide expectations that it would be, was currencies, and particularly the possibility of intervention to prop up the slumping United States dollar. Japan’s finance minister, Fukushiro Nukaga, the host of the meeting, said currencies were discussed only on the sidelines

Profit of Doom predicts US Hyperinflation

Wow, let's discussion financial armageddon with this recent commentary.

Veteran gold bug Ruff says financial world could collapse

Ruff says that he has recently decided that this time around the U.S will experience hyperinflation ("400 percent inflation or more") rather than "a rush of brains to the head, like Paul Volcker and Ronald Reagan did in 1980" and a halt to monetary expansion, "ending inflation and the gold and silver bull market, for at least a few years."
He writes: "I spent the '70s fending off the media label of "Prophet of Doom," arguing that I expected much less than doom. It turned out to be so.

Wholesale Inflation Surges 1.1% in March

USA Today reports:

The Labor Department reported Tuesday that wholesale prices rose 1.1% last month. That was the second biggest increase in the past 33 years. Analysts had been expecting a much more moderate 0.4% rise in wholesale prices.

Core inflation, which excludes energy and food, was more moderate last month, rising just 0.2%, down from a worrisome 0.5% rise in February.