"Double Trouble Deficit Bubble?(! )"

See:

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=114&topic_id=5623#5641

p.s. I am the one who helped Bev Harris first bust the phony voting machine (Diebold, et. al) racket!

www.blackboxvoting.com

[papau]

1. the 83 discovery was neat - great post!

I look forward to your posts!

to prove there is a problem one needs a model that shows the effect of inflated housing being adjusted by an inadequate aggregate based deflater - and one would think that such a model and results would lead to a re-do of the weightings in the CPI calc.

Interesting stuff!

:-)

2. I don't think there is an inflation adjustment for houses

Houses seem to be assigned values in a way which doesn't account for any kind of inflation of value. This is done in perhaps two ways in GDP as far as I can tell. The first is the infamous "owners equiv of rent."

The second is the category of RI itself seems to exclude any deflator.

So the higher house prices go, the bigger the GDP, and the littler the US deficit looks.

It looks unbounded. Like a tree to the sky.