Value Microcaps Motherboard

[J Sim]

SS COLA

While the COLA number may be BS, the representation here that the use of a 3 month window is inappropriate is a bit of misdirection. The comparison used by the Feds to determine COLA is not against the previous months(not April to June 2007 against March 2007) but instead the specific quarter from the previous year (e.g. QTR 2 2007 compared to QTR 2 2006).

This method is entirely satisfactory as long as the Quarters (3 month periods) compared are the same and do not change. You might get screwed a small amount if inflation spikes for a quarter or two but you can also win if prices drop temporarily before going back up.

FYI- I use the inflation tables regularly in a similar manner. The real issues not discussed are the items that make up the inflation market basket (and those excluded) and allowances for product substitutions. Basically, product substitutions are a lowering of the standard of living.

J Sim