CPI and inflation

CONSUMER PRICE INDEX:

*A consumer price index (CPI) is an index number measuring the average price of consumer goods and services purchased by households. It is one of several price indices calculated by national statistical agencies. The percent change in the CPI is a measure of inflation. The CPI can be used to index (i.e., adjust for the effects of inflation) wages, salaries, pensions, or regulated or contracted prices. The CPI is, along with the population census and the National Income and Product Accounts, one of the most closely watched national economic statistics.

* The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.


INFLATION:
A persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to diflation).


DEFLATION:
A fall in the general price level or a contraction of credit and available money.

STAGFLATION:
An inflationary period accompanied by rising unemployment and lack of growth in consumer demand and business activity.

The CPI affects nearly all Americans because of the many ways it is used.

The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance.

The CPI cannot be used as a measure of total change in living costs because changes in these costs are affected by (such as social and environmental changes and changes in income taxes) that are beyond the definitional scope of the index and so are excluded.

CPI cannot be used to measure differences in price levels or living costs between one place and another; it measures only time-to-time changes in each place.

The CPI may not be applicable to all population groups. For example, the CPI-U is designed to measure the experience with price change of the U.S. urban population and thus may not accurately reflect the experience of people living in rural areas


The CPI cover some good and services such as, food beverages, housing, apparel, tranportation, medical care,recreation, education and comunication, and other goods and servivices like,tobacco and smoking products, haircuts and other personal services, funeral expenses.

National Debt

National Debt:

National Debt is money that a country owes to foreigners.

Trade Deficit:

a negative balance of trade is known as a trade deficit or, informally, a trade gap.

A trade deficit is a calculation of the difference between the goods and services Americans sell to foreigners and the goods and services that Americans purchase from foreigners. A trade deficit with one country or in one year is not necessarily worrisome, and according to standard economic theory, will correct itself over time. But the theory has been proved wrong over the last 30 years as the United States has run consistent and increasing trade deficits. The enormous size of the trade deficits over the last several years raises the possibility of a severe international economic crisis should foreigners begin to dump the dollars they hold in world currency markets. The trade deficit is calculated on an annual basis, so the number above was $0.00 on January 1st, 2008.

U.S. NATIONAL DEBT CLOCK
The Outstanding Public Debt as of 26 Mar 2008 at 01:54:17 PM GMT is: 9,403,234,932,855
The estimated population of the United States is 303,692,909so each citizen's share of this debt is $30,947.19.
The National Debt has continued to increase an average of$1.64 billion per day since September 29, 2006!

U.S. Trade Deficit.

$165,897,071,465.3

I think the National Debt is hurting the most the US. The National Debt has been increasing an average of $1.64 billion per day since September 2006. Each citizens must pay around $30,947.19 to pay off all the debt. i think that is a lot of money .

The trade deficit is another story. When we (mostly the private sector) import more than we export, we run a trade deficit. When that happens, it adds to our foreign debt.

http://www.americaneconomicalert.org/ticker_home.asp

http://www.brillig.com/debt_clock/

Visa ready to charge ahead

http://money.cnn.com/2008/03/19/news/companies/visa_ipo_opens.fortune/index.htm

*Hopes are running high that Visa's record-breaking IPO will revive the sleepy market for new shares.
*Visa's public offering made its new owners very, very rich when it priced Tuesday night for a record-breaking $17.9 billion
*It sold 406 million shares at $44 a share, $2 above its estimated $39-$42 rang.
*Analysts also say that Visa is on solid financial footing and has what it takes to deliver steady earnings growth
*Visa also said it would rake in approximately $17.3 billion in net proceeds, leaving about $600 million to cover things like underwriting fees, discounts and commissions
*analysts believe its success could breathe life into a stagnant IPO market.
*Visa is getting in a period when so few IPOs have been done that underwriters are not making money in fees. The success of this deal could slowly rekindle the IPO market.