Totgesagte leben laenger   

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They exclude entire asset classes that have experienced the greatest inflation (stock market)

Well, the CPI is supposed to exclude the stock market, that makes sense. The point is to estimate cost of living. Stocks are not a living expense, they are an investment. To put it another way, imagine two parallel universes where in universe A dividends didn't exist and buybacks are used and in B buybacks don't exist and dividends are used. Both universes are libertarian utopias so no tax considerations exist. A and B are economically equivalent as Dan has pointed out many times, but A will have higher stock market rate growth than B, so the stock-market-included CPIs of the two would be different, which makes no sense.

I recently reflected on the topic whether asset inflation should be a component of price inflation indexes, and I believe there is a strong case for inclusion. When buying into an ever rising (and substantially rising) stock market the expected long-term investment returns deteorate significantly, compared with a range-bound or slowly rising stock market. This implies that the cost of ensuring decent pension income is rising dramatically for the younger population, who started to invest comparably late. Pension income is going to be high for older folks, who will sooner tend to spend it, therefore creating some upward pressure on consumer prices. Younger folks have to withdraw consumption now, in order to save enough in a low expected return environment, but for them pension savings are definitely a part of their  "living expenditures". So, on both fronts - in terms of leading to future upward consumer price pressures, and in terms of representing the current cost of living, asset prices should not be ignored!

Quote from: bytemaster on December 31, 2014, 04:12:31 pm

http://bytemaster.bitshares.org/article/2015/01/01/How-to-create-a-stable-decentralized-crypto-currency/

Amazing.  This article is from the future.

@Dan, even on New Year's eve you work like a highly efficient blog-writing machine!
Happy New Year to you - we all wish that 2015 becomes great year for BitShares!

Great episode. Really enjoyed this one! Thanks Max and Dan 

agree 

Quote from: luckybit on December 26, 2014, 03:27:47 am

because either Bitcoin prices will be flat, will go lower, or will go into another epic bubble.

Lol how else can price react ? : )))

One more possibility would be an increase albeit short of a bubble... not sure though this would make an environment less competitive than the other three mentioned scenarios

thanks so much for sharing your views!

My honest opinion: I am biased on the tone of this post.  Examples:

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...while making everyone in the community a ton of money.

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You can help by lending our community your money

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Would you be willing to skip a couple of meals to help create a better world?

Clearly stating what the possibility (incl. the financial ones) are to get involved makes sense so that people know what their possibilities are but the message the above statements can convey (to me, totally subjective, maybe its a European perspective): It is about making money, not about changing the world. We want your money for our purposes. Cheesy. 

Instead the money making possibility could be introduced in subtle way (not that blunt/cheesy) and the reader should make the conclusion himself that money can be made here.

yes agree making "ton of money" sounds somewhat weird for an european ear, here trying to get rich is often viewed as disrespectful motive...

how about aknowledging that different people may join community for somewhat different reasons? some put more weight on changing the world, some put more weight on making money. still, that's unlikely that most people looking for new ways to get rid of their savings to improve the world. also unlikely that those who want to get rich without sticking with any ideas and ideals have the patience and conviction to stay on.

not to forget is educational motivation and intellectual stimulation with regards to new technologies and cutting edge economics and social aspects. or some may just feel lonely off line, who knows so, indeed, there is some mix for most of us, and everyone should be able to find the right balance, as long as they adhere to the core principles such as freedom, fairness etc... perhaps it is a matter of style how to express this for various cultures?