Seeking Alpha

Let them eat iPad! When NY Fed's Bill Dudley was pressed by a working-class audience about...

Let them eat iPad! When NY Fed's Bill Dudley was pressed by a working-class audience about how he can view inflation as low when grocery prices keep rising, his response: "You can buy an iPad2 that costs the same as an iPad1, that’s twice as powerful." Grumbling ensued, as Dudley is stunned to learn that iPads are more popular at Fed offices than on the streets of Queens.
Comments (24)
  • j-dub
    , contributor
    Comments (1235) | Send Message
    In arduous defense of the brilliant Mr. Dudley:




    1 cup chopped ipad 2
    1 cup chopped blu ray player(BD 2.0 or higher)
    1 cup coarsely chopped iphone 3G
    1/2 cup chopped dyson DC28 Animal
    4 tablespoons butter
    2 tablespoons olive oil
    1/4 pound lean ipod touch 64GB
    12 ounces lean(flat screen) 60 inch plasma LED
    1/2 cup Concordia Coffee Systems expresso/latte maker
    2 cups Michelin PAX tires stock
    2 tablespoons Nintendo 3DS(DS substitute exceptable)
    1/2 pound ADAM Audio's Olympic Sound System
    1 cup Canon EOS 1Ds Mark II
    1 pinch ground nutmeg salt and pepper to taste


    Combine the ipad 2, blu ray player, iphone 3G and dyson on a cutting board and chop into very small pieces. In a large skillet melt butter over medium heat. Add mixture and saute, stirring often, for 10 minutes or until lightly browned. Transfer to a heavy large saucepan.
    In same skillet heat olive oil and lighlty brown ipod touch 64GB and lean plasma LED over medium heat, stirring constantly to break up any lumps. Pour in the Concordia Coffee Systems expresso/latte maker, increased the heat and boil briskly, still stirring constantly, until almost all of the liquid has evaporated. Add ipod touch 64GB mixture to ipad 2 mixture in saucepan. Stir in the Michelin PAX tires stock and Nintendo 3DS Bring all to a boil over high heat, then reduce the heat and simmer, partially covered, for 45 minutes, stirring occasionally.
    Meanwhile, melt remaining 2 tablespoons of butter over high heat in the original skillet. Add ADAM Audio's Olympic Sound System and saute for 3 to 4 minutes, or until firm and lightly browned. Remove ADAM Audio's Olympic Sound System from skillet and dice. Set aside and add to sauce 10 minutes before it is done. A few minutes before serving, stir in the Canon EOS 1Ds Mark II and let it heat through. Season sauce with nutmeg, salt and pepper to taste.


    (So you see, there are ALWAYS two sides to every story.)
    11 Mar 2011, 06:16 PM Reply Like
  • Dawgeatdog
    , contributor
    Comments (83) | Send Message
    Back in the 1990s the government started to tweak inflation numbers by introducing the production of more efficient products at the same price as a sign of deflation. If you add an actual price cut as well as has been common with plenty of electronic goods and you get even more deflation. These numbers go into the calculation of both the consumer and producer price indexes. Over the history of calculating inflation, there has rarely been any component that has contributed as much of a deflation weighting as electronic goods have over the last 15 years.
    11 Mar 2011, 06:19 PM Reply Like
  • Fueled By Randomness
    , contributor
    Comments (293) | Send Message
    There was an article at Morningstar just the other day about how the CPI calculation has changed over the years:


    The author stated that if we still calculated the CPI the way we did during the Carter years, today's inflation rate would be 8.9%.
    11 Mar 2011, 08:14 PM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
    Dudley can you please take your half million dollar salary and purchase yourself a muzzle? Why are we cutting the rights of teachers unions and still paying this guy? What a joke. We have got to audit the Fed!
    11 Mar 2011, 06:22 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4275) | Send Message
    Agreed. Audit the Fed, but outlaw public service unions.
    11 Mar 2011, 06:42 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
    Sure outlaw the unions so you can screw the working guy with impunity! Us working stiffs love that idea!!!! Governor Walker has no shame and they should all be impeached or recalled. How do Republican lawmakers break the law and stay in office?
    11 Mar 2011, 08:38 PM Reply Like
  • The Geoffster
    , contributor
    Comments (4275) | Send Message
    Public service unions are corrupt political tools of the democrat party. The politicians they "negotiate" with are elected with their help and beholden to them at the expense of the rest of the electorate. There is no profit motive in government and therefore no need to protect labor from capital. public service unions are just another corrupt interest group. Most governments are already overburdened with redundant employees. Get a real job in the private sector where you might actually be justified in unionizing; or, just continue being a parasite and wait for your pink slip.
    11 Mar 2011, 09:22 PM Reply Like
  • mattyw
    , contributor
    Comments (125) | Send Message
    Private sector's shrinking, and will only get smaller and smaller. Someone doesn't like their low paying, private sector job, get used to being paid even less in the future, until your job's outsourced. Then you'll be BEGGING for a 'parasitic' public sector job.
    11 Mar 2011, 09:57 PM Reply Like
  • bbro
    , contributor
    Comments (10892) | Send Message
    I don'y have a problem with limiting public unions but if the cost
    comes at getting crappier teachers then we as a country might be cutting our nose off to spite our faces....
    12 Mar 2011, 03:53 AM Reply Like
  • nobby73
    , contributor
    Comments (1176) | Send Message


    Frankly, I am glad Dudley made this statement, because he's raised the issue of hedonics to a wider audience. Once Joe Public understands that the 40" plasma screen vs 32" inch, or the slightly louder car stereo and electric windows in the rear, or the faster processing time on the iPad are used by the BLS to mask the constant currency debasement that makes essentials such as food and energy more expensive, keep a lid on pension payments, pay rises etc etc.


    The average citizen has had a sense that the official inflation data was bullshit, but didn't understand the methodology. By illustrating it via something that almost everyone understands - the new generation iPad - he's blown it wide open.
    12 Mar 2011, 05:37 AM Reply Like
  • Rolo
    , contributor
    Comments (147) | Send Message
    You know, some people still believe in "Public Service" so maybe you shouldn't get so damned anal. Sure there's corruption, but don't act like the private sector isn't saturated with corruption (AKA LOBBYISTS)
    13 Mar 2011, 02:40 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
    Tell a firefighter he or she is a parasite while your standing back watching your house burn with you wife and kids inside. Tell the police they're parasites when they get the arsonist that started the fire. Tell the teacher he or she is a parasite when your kid is walking up to get his college diploma. You need to go see the wizard because you don't have a brain and getting your offspring up that aisle for that diploma is going to be a real challenge for them teachers. They will probably have to insist on a raise.
    14 Mar 2011, 12:20 AM Reply Like
  • jjmc2001
    , contributor
    Comments (1337) | Send Message
    Obviously the guys at the Fed doing the inflation numbers haven't bought groceries lately or been to the gas station. The CPI and PPI have never been a good barometer for the average citizen. I suppose looking at the delta over time is Ok but when the monthly numbers come out it means nothing to the average consumer.
    11 Mar 2011, 06:42 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message


    No, They know the numbers. But for the the people they represent,
    this amounts to an almost immeasurable nuisance expense.


    It simply amounts to too little a percentage of their incomes.


    Hence the blinders, weather intentional or via ignorance.
    11 Mar 2011, 06:59 PM Reply Like
  • Joe Morgan
    , contributor
    Comments (1610) | Send Message
    More preposterous arguments of the masses...


    The Federal Reserve is abiding it's mandate, in which pertains price stability and full employment....


    Low resource utilization and feeble labor markets participation, should
    constraint high inflation and provide us with moderate price appreciation in
    a context of year to year....


    Nonetheless, we need QE-2 to end now, as it is distorting free-market mechanisms and creating unnecessary overhangs....
    11 Mar 2011, 09:57 PM Reply Like
  • BandwidthHog
    , contributor
    Comments (12) | Send Message
    Has he seen at the price of arugula at Whole Foods lately??
    11 Mar 2011, 07:14 PM Reply Like
  • bbro
    , contributor
    Comments (10892) | Send Message
    How much arugula is spent as a % of your income??
    12 Mar 2011, 03:54 AM Reply Like
  • davidbdc
    , contributor
    Comments (3184) | Send Message
    No surprise that a federal official would be oblivious to what is actually going on in the real world.


    Inflation is everywhere except for where the government chooses to look.
    11 Mar 2011, 07:24 PM Reply Like
  • wyostocks
    , contributor
    Comments (8867) | Send Message
    F**K the fed.
    11 Mar 2011, 09:06 PM Reply Like
  • bbro
    , contributor
    Comments (10892) | Send Message
    Great get rid of the Fed,,,,have a depression...oh i'm sorry
    an economic adjustment...
    12 Mar 2011, 03:56 AM Reply Like
  • UlrichBenzing
    , contributor
    Comments (53) | Send Message
    Mr. Bill Dudley's remarks remembers me of "if they cant afford bread, why don't they eat cake?"


    The Lady who said that lost her head later on... on the guillotine :)))
    12 Mar 2011, 07:20 AM Reply Like
  • jcedens
    , contributor
    Comments (3) | Send Message
    What is needed is a set of income bracket inflation numbers. For those who spend virtually all (95%) of their income on basic necessities such as food and shelter (already purchased and underwater) and energy, perhaps income of 40k and below, their inflation rate is X%. For those who spend 20% of their income on basic necessities, and the remainder for ipads, starbucks, premium cable channels, jewelry, annual upgrades to big screen TVs, gourmet kitchen upgrades, etc, then their inflation rate is X%.
    Perhaps a breakdown of inflation by necessity vs. discretionary by income group. This would be an eye opener as to how oppressive the inflation is on lower income groups.
    12 Mar 2011, 12:16 PM Reply Like
  • jccbbi
    , contributor
    Comments (2) | Send Message
    the main reason that cpi is measured the way it is--is to minimize
    the cost of living increases to social security recipients who have
    not received a raise in two years. this equals many billions of
    savings for the government.
    12 Mar 2011, 08:13 PM Reply Like
  • KJP712
    , contributor
    Comments (460) | Send Message
    Dudley was confused by the question.He did not know what a grocery store was.
    13 Mar 2011, 01:13 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs