January 27, 2013


Disturbing news from the GPI Deflator:


I have been dismissive of inflation projections from some of my blog brothers. Yet I must report today's potential "wake up call."

I have been playing finger style guitar for the last ten years or so. Before that time, I had a large supply of picks. I figure it has been 14 years since I bought them. Some new material I am working on requires them, and I took a nice convertible ride on a lovely day to stock up and try some new styles.

Where I recall their being about a quarter before, they are a dollar now. Using the rule of 70, I compute the GPI (Guitar Pick Index) deflator to be 70/(14/2). That's a seven percent annual increase in the price of picks! That Bernanke fellow has quite a bit to answer for.

Monetary Policy Posted by John Kranz at January 27, 2013 4:31 PM

"Math Ranger" here. Idn't that ten percent?

You can blame a lot of that increase on the price of oil, the rise of which is factored out in many indices.

Posted by: johngalt at January 29, 2013 9:05 AM

Damn you, Math Ranger! Foiled again!

Heh, I started with 20 years and backed it off at the last minute without recomputing. Math is hard.

Posted by: jk at January 29, 2013 10:22 AM | What do you think? [2]