Daily review 29/01/2020

Written By: - Date published: 5:43 pm, January 29th, 2020 - 7 comments
Categories: Daily review - Tags:

Daily review is also your post.

This provides Standardistas the opportunity to review events of the day.

The usual rules of good behaviour apply (see the Policy).

Don’t forget to be kind to each other …

7 comments on “Daily review 29/01/2020 ”

  • Comments are now closed

  1. pat 1
    29 January 2020 at 9:28 pm

    "Wonks tell us, with all sincerity, things like “the US cost of living rose 2.1% last year.” Really? To an actual numerical decimal place? On something as vague and as complex as inflation? Now, to give them credit, they are looking at the total national inflation rate and it is extraordinarily complex. They do the best they can.

    But the inflation you and I experience? They don’t know that. They can’t know it, at least not with any precision because the cost of living is so individualized. Everyone spends their money differently, and the things they spend it on vary in price for many reasons."

    https://www.interest.co.nz/opinion/103396/john-mauldin-suggests-its-time-consider-changes-inflation-measures-better-reflect

    NZ CPI (measured inflation) has averaged 2.15% since 2000….but in the real world?

    • Poission 1.1
      29 January 2020 at 9:38 pm

      The rbnz inflation calculator is a good tool.If we use housing (which would be the largest household cost) so since 2000 we have

      Total percentage change264.3%

      Number of years difference19.50

      Compound average annual rate6.9%

      Decline in purchasing power72.5%

      Would that be a fair assumption?

      https://www.rbnz.govt.nz/monetary-policy/inflation-calculator

      • pat 1.1.1
        29 January 2020 at 9:57 pm

        probably not as the housing question is muddied by the serviceability factor determined by both mortgage size and interest rates (which are at historic lows)….I believe we need a parallel inflation measure that only measures the basic necessities of joe publics monthly outgoings..i.e. basic foods, energy, housing (and not the absurd part measure currently used) taxes (rates, GST etc) medical and insurances, maybe one or two others, the things that are absolutely necessary and in no way discretionary.

        They can keep their CPI for international comparison if they so wish.

        • Poission 1.1.1.1
          29 January 2020 at 10:13 pm

          Dont disagree,housing for a significant number of NZers can be over half their household income.

          do the new wellbeing metrics identify these issues?

          • pat 1.1.1.1.1
            29 January 2020 at 10:18 pm

            yes housing can be…and it is rather lightly weighted in the CPI. As to the Wellbeing measures I dont believe there is specific measurement in the terms I describe as far as the RBNZ is concerned

  3. gsays 3
    29 January 2020 at 11:24 pm

    "Gottle of geer."

The server will be getting hardware changes this evening starting at 10pm NZDT.
The site will be off line for some hours.