Not bored at all, but I think you’re dead wrong regarding the CPI. I believe it is what it is, and it’s not being “manipulated” (the bond market seems to think so as well, if you look at the spread on TIPS).
I know I’m probably going to be in minority on this board, but I believe the CPI is actually very well computed. I did look it up, and yes, “owner’s equivalent rent” and “hedonics” and all that make perfect sense to me (although you got your hedonics example backwards). I’m sure we could argue this at length, and I’m pretty sure that you’re going to offer a scathing rebuttal to my post, but I thought that a little difference of opinion would be helpful. Truth is, I’m getting a bit tired of all the “government is lying, AG and BB are morons, depression is coming, end of the world is near, get your gold bars and tuna cans and hide in the basement” attitude prevalent on most housing blogs.
And yes, we do experience higher inflation in SD, but the CPI is for the US as a whole, not for SD. In the euro area they had 1-2% inflation the past few years; but it was more like 8% in Ireland and Spain, while Germany was deflating. Personal perceptions can be very misleading. As they say, “In God we trust; everyone else bring data”.
