We have the worst inflation in 39 years and if we used the same CPI we used 39 years ago, the inflation would be 15%, so says Peter Schiff (and the chart below).
The CPI has been manipulated and is about to be manipulated again to hide the results of the bad policies of the Biden Regime.
The US drastically adjusted the CPI in the 1980s to hide the effects of government policies. Zerohedge lays it out in “Consumer Price Inflation: Facts vs. Fiction.” The article explains the key difference from the 1970s to the 1980s. The CPI of the 1970s included house price inflation, while the current measure does not. Instead, home price pressures have been swept in the purposefully nebulous Owner-Equivalent Rent which can be whatever politicians say it is. There were other definitional changes, see here, here, here, and here.
If today’s CPI did include house prices in its measurement, the currently reported inflation numbers for house price inflation would push CPI (and core CPI) to 15%.
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The CPI chart below from the ShadowStats website reflects the estimate of inflation for today as if it were calculated the same way it was in 1990 and in 1980. In general terms, methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living.
THE PLAN TO ERASE INFLATION THROUGH FAKERY
Unbelievably, the BLS has reported, starting next month it will adjust the weights for its Consumer Price Index basket, which will be calculated “based on consumer expenditure data from 2019-2020.” We can guess the direction it will go in. It will make inflation disappear.
BERNANKE: COMMODITY PRICES WON’T ADD TO INFLATION GOING FORWARD
Why? Are we changing the definition of CPI again
— zerohedge (@zerohedge) August 25, 2021
2 percent. what world does this guy live in?
— PHummell (@Hummer53) July 28, 2021
*POWELL:FOMC PREPARED TO ADJUST POLICY IF EXPECTATIONS GO BEYOND
by changing definition of PCE and CPI
— zerohedge (@zerohedge) July 28, 2021
wpDiscuz
