Okay, here’s a short one, but it bugs me. I have a degree in Economics, and though I’m no expert, I have a lot of friends who are. A special nod to old friend Eric Janszen and his excellent, if intense, web site iTulip.
Here’s the thing- there is a big risk of inflation going through the roof for a variety of reasons. If you’re much under 50, you don’t remember inflation, but I do and it really, really sucks. Unemployment rises, all boats are falling in an ebb tide, and the price of everything gets insane. You’re not going to like it.
But. I believe it’s official White House policy because it’s the only way to shrink our MASSIVE debt (note- George W. Bush has borrowed more money than all previous Presidents COMBINED!)*
Anyway, here’s the rant part. When they report “core” inflation, which is what the current CPI (consumer price index) shows, they remove energy and food. Energy and food aren’t a core part of most people’s spending? When you include groceries, restaurants, gas, utilities and all the other things that constitute food and energy, how the heck is that NOT part of “core” inflation?
They are lying to us in so many ways.
1 comments:
They also don't include housing and healthcare, which as everyone knows, are two of the biggest sources of government-created price increases.
Technically, the Fed's stated intent is to preserve the value of the currency. Nonetheless, the dollar has lost purchasing power every year for 94 straight years. You'd think after 94 straight years of failure, the public would start to question their necessity.
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