February 6, 2011

Economic Numerology

n. A system, tradition, or belief in a mystical or esoteric relationship between numbers and physical objects or living things.

The empirical basis of modern economics is chain-indexing on an inflation history, where the measurement of housing cost is Owners' Equivalent Rent, which comes from a model with changing rules, which is fed by rent costs modified by a popular survey of owners and mortgagers, about their own buyer's perception of their own house values, in relation to local rent costs. Yet, the basis of empirical science is consistent measurement universally verifiable, and the basis of economic pricing is the rational self-interested seller who has experience and interest in the price signals that personally affect him.

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