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Bah! Humbug And A Happy Hyperinflationary Christmas To All

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!




The Deadweight Loss Of Christmas – PDF here [5]

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