Indexing Prices for Adjustment: Conforming the Real to the Actual
The organized psychopathy is a chronic condition. Over time it gets worse, occupying so much space that there is no time left.
Velocity of the risk equals space over time.
While it seems possible to indefinitely avoid the probable risk, the more it is avoided (the resistance) the more probable it becomes (the existence).
The resistance measures the existence, but we can always “act” like there is no connection. We can always pre-tend the risk. We can fix it so it looks like the resistance and the existence are two, independent variables when they really measure the same thing.
Apparently, the real does not conform to the actual. It appears to be disconnected, and if it isn’t connected (which Aristotle described as the thesis of independence), then the liability is arbitrary, subject to delusions of a moral code that does not naturally exist by default. To adjust for “the inexistence,” we measure the existence against a weighted index of needed goods and services, measuring the amount of money needed to subsist without debt.
This is the Consumer Price Index (CPI), and since it measures income required for a minimum standard of existence, essentially it measures the demand for debt (the economic rent).
Using the CPI, it looks like we are adjusting for inflation. The adjustment, however, is really for deflation. Deflation and inflation are two, separate things, but no, they are connected. They are so connected that, essentially, they measure the same thing. “Actually” they are separate, but “really” they occupy the same space over time. If that doesn’t make sense, well, it’s technical.
To index prices and adjust for inflation, technically there is “real” value and “nominal” value. Real value is not expected to conform to the nominal value.
To gain objective reality it is necessary to deflate the nominal (actual) value to reveal the real (adjusted) value. If the quotient (the divisible difference over time) is zero, then there is no inflation. Zero means that prices are fully deflated and the Fed considers that to be abnormal. Falling nominal prices indicates reduced demand, which is deflation in the first order, which is what commodity analysts mean when they say that “falling oil prices are bad for consumers.” If that doesn’t make sense, well, it’s technical.
In order to be normal, the Fed has to “accommodate” conformity. It must “reinforce” resistance to a zero, or negative, CPI being the measure of a conforming identity because, apparently, our natural identity is naturally non-conforming.
The Fed operates a financial Skinner Box, chronically conditioning the economy to attain a positive CPI that does not conform to an obtaining, natural identity.
It is necessary to “force” divergence of the real with the actual. Convergence of the values is unnatural–the risk to be avoided, right?
Adjusting the CPI is considered to be adjusting for the expected risk, which is a time series of probable events that pre-dicts the probable outcome–i.e., rising consumer prices without the appearance of deflation.
Makes sense, doesn’t it?
Technically, when the CPI is released this week by the Bureau of Labor Statistics, if the number is low, stocks go higher.
A low CPI predicts rising equity values because it means the Fed continues to accommodate the non-conforming identity of falling consumer demand by forcing its resistance.
Is this the wrong way to measure doing it right (a chronic condition), or what!
griffithlighton 