MONEY: Inflation = 2, 6, or 10 percent?

http://dailyreckoning.com/the-art-of-central-banking/

The Art of Central Banking
by Kate Incontrera.
Posted Apr 16, 2014.

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What is the inflation rate? Now, you think that’s just quantity, right? Just add up stuff. Anybody can do that. But it’s not that easy. There are lots of things go on in deciding what to put into that basket, and if you work hard enough, you can get that number anywhere you want it.

And the feds have done a great job at that. They have redone the way they calculate the inflation rate twice in the last 30 years and – guess what? – Each time, they’ve gotten a lower number. How do you like that? What a coincidence.

Right now, we have an inflation rate of about 2 percent. If you did it the way they did it in the ‘90s, you’d have 6 percent. Okay, that’s 4 percent difference, but it’s – you know, it’s three times the rate that we’re working from. And, if you did it the way they did it during the Carter Administration, you’d have an inflation rate of almost 10 percent. That’s five times the number we’re working with.

Now, here’s the question. Each time each of these numbers was done by a group of economists, the brightest and best in the country. Now, which one of these groups was a bunch of dunderheads? One of them was! Two of them were! How come? How are you supposed to know that? Which one is right?

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The FED is the OPEC of the Big Banks.

The little guy doesn’t stand a chance.

Prior to 1913, gold was money and the discipliner of the Gooferment. After 1913, the Big Banks enabled Big Gooferment and were rewarded with a license to steal.

The part that bothers me is that the poor, the elderly, and those on fixed income are being robbed and the banisters, union “leaders”, politicians, and bureaucrats are rolling in dough.

Argh!

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One Response to MONEY: Inflation = 2, 6, or 10 percent?

  1. I don’t remember the date, nor am I certain whether it was “inflation” or just the “Consumer Price Index” (which is a “measure of inflation” and I think is actually what I’m thinking about…) but at some point in the 70s/80s a decision was made to remove cigarettes from the basket so they could hike the taxes without making it appear that inflation was increasing. I believe however that gasoline and alcohol are still included and tax hikes will affect the final figure, so it’s just the smokers who got screwed.

    - MJM

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