Joseph Carson, the former chief economist at Alliance Bernstein, warns that inflation is actually in the double digits if we go by 1970s price measurement methods — Jimmy Carter’s era.
“In May, the consumer price index (CPI) rose 0.6%, pushing the twelve-month increase to 5%, the most significant increase since 2008. Core CPI rose 0.7%, lifting the twelve-month increase to 3.8%, the largest increase in almost three decades,” Carson writes. It’s actually much worse as bad as this is.
Changes over the past several decades hide the real numbers.
Mr. Carson gives an example — “government statisticians now employ an arbitrary and non-market price for owner’s rent, removing actual housing prices from the calculation.”
[Core inflation strips out food and energy because they’re volatile. Money policy is made on core inflation.]
“Significant tightening in monetary policy breaks inflation cycles. It took the Fed Chairs of Volcker and Greenspan an entire decade, lifting official rates far above inflation to break the 1970s inflation, and in 1994 it took Greenspan a full twelve months to suppress a potential cyclical jump in inflation.”
This creates some problems: “First, how can you use justify changing monetary policy for an inflation problem you say doesn’t exist? Second, if policymakers decide they need to raise real interest rates, what price measure do they use as a benchmark? Third, how does the Fed drive real interest rates higher when they own a third of the Treasury market.”
Inflation cycles end badly even when everyone knows there is a problem, Carson says.
The Feds are trying to say this is a transitory problem. Carson references the Carter era and how Federal Reserve Chair Arthur Burns said the same thing. He demanded food and energy prices be stripped out of the measure. It ended up with him continuing easy money policies. We all know how that turned out — stagflation.
Inflation is zero if we use Obama era standards. Obama claimed near zero inflation for 8 year so SSA recipients and retirees would get no cost of living increases, yet the same government has stated that between 2009 and 2016 we “lost 30% of our purchasing power”. How does that happen without inflation? Yet too many seniors still are brainwashed into voting democrat because the liar democrats run ads claiming the republicans will hurt SSA….
What we are seeing is the trashing of America by Democrats. The know sane people won’t vote for them, so they Stole the 2020 Election and are now stealing everything they can before they are thrown out of Office Forever. There insurance policy is open boarders in the hope that in a Decade the “new citizens” will vote Democrat. The reality is that we have to stop Traitor Joe and the Democrats by any means it takes.
Empty spaces are everywhere by Thursday and the prices are going up on everything.
Some items are just gone or are so far on back order that it will be awhile.
There might be one cashier lane and thirty people waiting in line or the self checkout will have the people who are not shall we say technically oriented trying to operate them with a month supply of groceries. A good laugh or thinking of something pleasant instead of stompy foot works at this time.
The return of the misery index that started under Jimmeh Carta.
We used that pronunciation as youngsters and did some trick with our lips to look like Jimmeh Carta that our parents just couldn’t stand.
The Iran crisis was going on back then and everyone had the middle finger Iran stickers on vehicles.
How about that build it back better. Yes we can. Foward!
O/T-the store brand generic diet Mt Dew is long gone and I quit drinking pop because of it.
It is all seltzer good ol’ H20 or coffee with energy drink as treat or reward when on sale.
It sold like hot cakes and maybe Big Soda told them to stop?