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Bah! Humbug And A Happy Hyperinflationary Christmas To All

Posted By admin On December 24, 2012 @ 6:44 am In Money Watch | Comments Disabled

Zero Hedge [1]
December 24, 2012

There are, according to USA Today [2], 364 items that need to be purchased to create the ultimate gift basket from the epic holiday song “The 12 Days of Christmas”. Based on PNC Wealth’s Christmas Price index [3], the cost of this basket is $107,300 in 2012 (up 6.1% year-over-year). Since 2001, when the Fed embarked upon its uber-expansionary monetary policy experiments, the cost of Christmas has risen over 40% faster than the Government’s prescribed CPI (and if we use a different cost-base [4]since 2006, the cost of Christmas has risen 46% per year on average). And on an even more Bah! Humbug note, there is the important economic question of the Deadweight Loss of Christmas [5] – i.e. gift-giving means consumption choices are made by someone other than the final consumer, with potentially sub-optimal micro-economic effects such as a mismatch with the recipient’s preferences. This wonderfully positive report finds thatbetween 10% and 33% of the value of gifts ‘given’ is destroyed through this inefficiency (with cash – or gold – the least impacted?). Happy Holidays, everyone!


Bah! Humbug And A Happy Hyperinflationary Christmas To All 20121223 xmas 0 [6]


The Deadweight Loss Of Christmas - PDF here [5]

Cost of 12 Days of Christmas in 2005/2006 - PDF here [4]

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URL to article: http://www.prisonplanet.com/bah-humbug-and-a-happy-hyperinflationary-christmas-to-all.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/2012-12-23/bah-humbug-and-happy-hyperinflationary-christmas-all

[2] USA Today: http://www.usatoday.com/story/money/business/2012/11/26/12-days-of-christmas-107k/1726807/

[3] PNC Wealth’s Christmas Price index: http://content.pncmc.com/staging/pnc/microsite/CPI/2012/downloads/2012_1126_Rls_CPI_English.pdf

[4] different cost-base: http://www.emeraldinsight.com/journals.htm?issn=0951-3574&volume=20&issue=5&articleid=1626573&show=pdf

[5] Deadweight Loss of Christmas: http://graphics8.nytimes.com/images/blogs/freakonomics/pdf/WaldfogelDeadweightLossXmas.pdf

[6] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/12/20121223_xmas.jpg

[7] Outrage as U.S. health centre offers ‘abortion gift certificates’ for Christmas: http://www.prisonplanet.com/outrage-as-us-health-centre-offers-abortion-gift-certificates-for-christmas.html

[8] Freemasons sell Christmas membership packs for £80: http://www.prisonplanet.com/freemasons-sell-christmas-membership-packs-for-80.html

[9] Merry Christmas and Happy Gun Control, Chicago: http://www.prisonplanet.com/merry-christmas-and-happy-gun-control-chicago.html

[10] TSA Warns: We’ll Open Your Christmas Presents: http://www.prisonplanet.com/tsa-warns-well-open-your-christmas-presents.html

[11] Police: Christmas Eve firefighter shooter used ‘straw purchaser’ to acquire weapons: http://www.prisonplanet.com/police-christmas-eve-firefighter-shooter-used-%e2%80%98straw-purchaser%e2%80%99-to-acquire-weapons.html

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