so perhaps Denny and others can judge for themselves. I have no idea if the government at 2% is right or wrong nor if at 5 to 8% the author is right or wrong nor do I particularly care since I don't live in the USA. My biggest economic contact with the USA now is through the stock market. Since stocks generally track inflation, American inflation benefits me since I do my spending in large measure in Venezuelan currency. I fill my gas tank for a quarter, tip included. I see gas deflation through government action (or inaction). We used to have what was considered low inflation at 6%. You could buy bonds yielding 8% for a 2% net or get loans at 12%. That regime stopped in 1984. We have witnessed 30 to 35% devaluation of the Venezuelan currency against the US dollar. The Venezuelan economy is not entirely dollarized meaning the inflation rate is probably under 30%. Our CPI for 1997 to 2000 (as calculated by the central bank) was 32.5%, 26.6%, 18.5%, and 12.5%. I find these numbers highly suspect. The Chavez government was elected in 1998 and took power in 1999. In less that two years a regime that said it was not interested in administration but in politics reduced inflation to less that half. That's pure and unadulterated BS.As I said in my original post, inflation is a very personal thing. I benefit from Venezuelan inflation. My dollars maintain value much better than Venezuelan inflation eats away at it. I have been making a mental calculation at the supermarket every time I go shopping. First I'm horrified by the inflation. Then I convert my bill to US dollars. My shopping cart has remained incredibly close to $100.00 for the last 20 years. With 30% inflation funny things happen. I paid Bs.1,200,000 for my car back in 1993. Twenty years later (I don't drive much now) I can sell the used car for around Bs.50,000,000 (BsF.50,000 in new currency). Anyone who has some money to spare either buys foreign exchange or capital goods to beat inflation.Just because I post with a provocative if plagiarized subject line, don't assume I'm taking sides. Read my post carefully and you'll see I took no sides.http://boards.fool.com/lies-damn-lies-and-cpi-30603409.aspxDenny Schlesinger
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