Monday, May 9, 2011

Good news everyone!

Here's a bit of news..... if inflation was still calculated the way it was in 1978, we would have in excess of 10% inflation right now. How did this 'magic' inflation reduction happen? Well, the Fed's have changed the math more than two dozen times since then... effectively stripping out anything reflecting reality. Read the Newsweek article HERE to get more details. (NEWSWEEK? Really?? Wow... I guess even a blind squirrel finds a nut now and then).

"And the reason the CPI is losing credibility is that, as economist John Williams tirelessly points out, it’s a bogus index. The way inflation is calculated by the Bureau of Labor Statistics has been “improved” 24 times since 1978. If the ...old methods were still used, the CPI would actually be 10 percent. Yes, folks, double-digit inflation is back. Pretty soon you’ll be able to figure out the real inflation rate just by moving the decimal point in the core CPI one place to the right."

The price of gasoline has doubled in the last two years, and food is chasing it's heals. This can be tracked straight line right back to this administrations economic bumbling and larceny. Sadly, I suspect the kind of people who voted this administration in simply won't bother to think about that... since they haven't been told to by their herd boss. In fact... most of the people I know who voted for this administration stopped reading this as soon as they noticed it looks bad for 'their team'.


Crucis said...

I just posted about pump pricing. A local station had a oil commodity trader on this morning. He said the 30% of the oil price rise over the last two years is directly due to the weakness of the dollar, i.e., inflation and debt.

You won't hear that from the MSM.

Ron said...

It's the Carter years all over again. Except with a CPI that almost, but not quite, masks the damage caused by big government.