DelphiFAQ Home Search:

Your government in Washington lies to you about inflation

 

comments21 comments. Current rating: 3 stars (6 votes). Leave comments and/ or rate it.

Have you noticed how the government published inflation numbers (consumer prices index, CPI) shows very low inflation while your personal experience is a very different one – namely that prices go up and up all over the place? What is the reason?

The CPI is calculated excluding food and energy. Coincidentally these two things are driving up everything in my very own life. What would the real inflation rate be if you add back everything the government takes out?

This is the work of the Bureau of Labor Statistics (BLS). The BLS has been working to portray the U.S. economy as strong and inflation free. They manipulated the CPI inflation numbers in various ways.

By contrast, in European countries inflation is calculated including food and energy. Since energy has become more expensive worldwide, the USA’s CPI falsely shows a lower inflation rate than the Euro zone.

The BLS itself describes it as:
"Effective with the calculation of the seasonal factors for 1990, the Bureau of Labor Statistics has used an enhanced seasonal adjustment procedure called Intervention Analysis Seasonal Adjustment for some CPI series."

When and why did the government decide to change the formula for inflation?

In the early 90’s during the Clinton era the government in Washington realized it had a problem with rising costs for Social Security, Medicare, and government pensions. The amount of these payments was set up to match the annual inflation rate and they could not afford to have them rise with the rising cost of food and energy. Of course the government could’ve tried to bring the inflation rates down instead of rising social security payments. But instead of actually changing import tariffs, subsidies, taxation or interest rates they chose the way of statistical manipulation. By simply redefining the meaning of inflation they lowered the numbers and thus avoided high payments.

Besides the CPI there are other indexes to watch e.g. the chain-weighted price index for personal consumption expenditures (PCE) and the Wholesale Price Index (WPI).

Oh and finally, what is driving inflation? Oil prices are a big part of the story, but not all of it. Other commodity prices are also rising. For the USA, the Dollar’s loss of value against the Euro will show effects in the near future.

If you want to see the government's inflation, you may use their calculator:
http://data.bls.gov/cgi-bin/cpicalc.pl


Comments:

You are on page 1 of 2, other pages: [1] 2
2007-08-31, 00:39:57
ghettodude@gmail.com from Colorado Springs, United States  
rating
Inflation is mainly caused by creating too much money. The Federal Reserve does this mainly in response to the demand for money from the government, which spends far more money than it has, and the banking industry, which demands new money to service new loans. The insidious 'fractional reserve banking system' then mulitplies the amount of newly created money by a factor of 100 once it filters through the banking system, creating even more demands for new money. The result is an exponentially increasing supply of money (lots of paper bills and magnitudes more in computer numbers) chasing after a relatively stable supply of goods, the effect of which continually pressures prices upwards. The only reason we don't have hyperinflation yet (it is coming) is that the dollars have been flowing out of the country much faster than they have been coming home for redemption in real assets. You see, our government has a clever scheme to encourage foreign banks to keep a large reserve of dollars on hand, which has allowed us to create lots of money without getting burned by massive inflation. The foreign banks act like a sponge, soaking up all that excess money (remember the crates of US money that Saddam stashed away that our troops found?). That con is almost up, as foreign banks are now saturated with dollar reserves, and as the dollar loses value, the foreign banks are going to dump their dollars back into the market while they still have some value, and those dollars will find their way home to the USA. That's when our economy collapses and the dollar becomes what it has been since 1971 -- a piece of paper backed only by consumer confidence. Except this time, the confidence will be gone, the con will be up, and the dollar will be a completely worthless piece of paper with no purchasing power in sight.
2007-10-31, 19:07:47
anonymous from Cincinnati, United States  
Happy days are here again??

Will any economic strategy avert your scenario?
2008-01-10, 02:43:25
anonymous from Netherlands  
There are not enough trees to make paper for printing dollars.
Your inflation is skyhigh and the value of the dollar is less than the price of that piece of paper where it is print onn.Is the USA becoming a developing country?
Martin
2008-01-10, 05:49:31
anonymous from United States  
Is this some kind of news flash for you? Our Government lies about everything to the U.S.! Where have you been living, Nigeria?!
2008-02-14, 16:23:29
anonymous  
our goverment sucks
2008-02-14, 19:43:20
anonymous from Netherlands  
Ours too!!!
2010-06-02, 19:09:25
anonymous from Catania, Italy  
rating
ffbghjgjgfhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk kkkkkkkkkkkkffbghjgjgfhhhhhhhhhhhhhhhhhhhhhhh hhhhhhhhhhhhhhhhhhhhhhhhhhhhhh
This image was also posted here:
Another dating / chat scam - USA/ Nigeria connection



Keywords:
2012-05-21, 03:30:57
anonymous from United States  
http://www.vuittonl..schen.org/ louis vuitton online shop
http://www.vuittont..louis.biz/ louis vuitton online shop
http://www.vuittons..louis.com/ Louis Vuitton Taschen
http://www.louisvui..coche.biz/ Sac Louis Vuitton
http://www.vuittons..louis.biz/ Louis Vuitton Taschen
http://www.onlinesh..schen.com/ Louis Vuitton Taschen
http://www.vuittonitalia.biz/ louis vuitton sito ufficiale


http://www.borsevui..louis.com/ Louis Vuitton Borse
http://www.pascherl..ssacs.com/ Sac Louis Vuitton
http://www.louisvui..egozi.com/ louis vuitton sito ufficiale
http://www.bagsloui..itton.com/ louis vuitton outlet
http://www.louistas..nshop.com/ Louis Vuitton
2012-07-01, 03:40:26
anonymous from China  
il sorgere del sole cattura l'intensità del grassetto colours.the naturale tonalità vivaci del denim Monogram sono accentuate da guarnizioni in cuoio naturale sontuoso in pelle ed un mani ultra urbano gratuito trasportare. Tracolla regolabile per il corpo croce o portare la spalla;[url= http://www.vuittonb..et]vuitton borse[/url]
Louis Vuitton firma della tessitura;[url= http://www.vuittonb..et]vuitton borse[/url]
pezzi di metallo dorato e colorato;
1 tasca interna piatta;[url= http://www.vuittonb..et]vuitton borse[/url]
Fodera in microfibra morbida;
create da esclusive tecnica sbiancante denim. 17.3' x 14.1' x 10.6'[url= http://www.vuittonb..et]vuitton borse[/url]
2012-07-02, 21:02:54
anonymous from China  
realizzata in neoprene monogramma in rilievo,GM scuba è un tote sovradimensionato della collezione cruise BY MARC JACOBS,con linee

pulite e nitide detailing.it include un tag id,una Louis Vuitton targa e una clip dock per cambiare la forma della borsa. Scuba

monogramma microfibra,fodera in microfibra e pelle passamaneria;
<a href= http://www.luisvuit../>borse vuitton</a>
pezzi di ottone dorato;
<a href= http://www.luisvuit../>borse vuitton</a>
dock chiusura a clip che può cambiare la forma del sacco;
Una tasca interna con zip e una tasca piatta;
tenuto in mano e portata in spalla;
<a href= http://www.luisvuit../>borse vuitton</a>
removibile titolare 23.6' x 18.1' x 12.2'
<a href= http://www.luisvuit../>borse vuitton</a>
2012-07-03, 20:33:36
anonymous from China  
realizzata in neoprene monogramma in rilievo,GM scuba è un tote sovradimensionato della collezione cruise BY MARC JACOBS,con linee

pulite e nitide detailing.it include un tag id,una Louis Vuitton targa e una clip dock per cambiare la forma della borsa. Scuba

monogramma microfibra,fodera in microfibra e pelle passamaneria;
<a href= http://www.luisvuit../>borse vuitton</a>
pezzi di ottone dorato;
<a href= http://www.luisvuit../>borse vuitton</a>
dock chiusura a clip che può cambiare la forma del sacco;
Una tasca interna con zip e una tasca piatta;
tenuto in mano e portata in spalla;
<a href= http://www.luisvuit../>borse vuitton</a>
removibile titolare 23.6' x 18.1' x 12.2'
<a href= http://www.luisvuit../>borse vuitton</a>
2012-07-05, 01:36:44
anonymous from China  
<a href= http://www.vuittonb..gt;vuitton outlet</a>Catturare rilassato stile urbano con la borsa week-end.?Morbido ma

resistente tela jeans Monogram impressione dà il modello Monogram un tocco d'epoca, mentre pezzi di metallici spazzolati

aggiungere fascino maschile.??
-Tela jeans idrorepellente con stampato pattern Monogram allargata<a href= http://www.louisvui..gt;vuitton

borse</a><a href= http://www.vuittonb..gt;vuitton outlet</a>
-Maniglie e rifiniture in pelle vitello<a href= http://www.louisvui..gt;vuitton borse</a>
<a href= http://www.vuittonb..gt;vuitton outlet</a>-Regolabili maniglie e tracolla rimovibile per trasportare a mano o

spalla
-Interni zippato tasca e 2 tasche piatte
<a href= http://www.vuittonb..gt;vuitton outlet</a>-D-ring per chiavi e accessori<a href= http://www.louisvui..on-outlet

-borse.com/>vuitton borse</a>
-Fodera in tessuto morbido
<a href= http://www.vuittonb..gt;vuitton outlet</a>-Dimensioni (LxHxP): 25.2 'x 16,5' x 10.2 '<a

href= http://www.louisvui..gt;vuitton borse</a>
2012-07-05, 03:52:54
anonymous from China  
<a href= http://www.vuittonb..gt;vuitton outlet</a>Abbraccio stile vintage con la Pochette Accessoires in jacquard Monogram Sabbia tessuto di cotone. Ornata con sorprendente in <a href= http://www.vuittonb..gt;vuitton outlet</a>vitello in pelle passamaneria e dettagli floreali fatti a mano, essa ha grassetto ancora femminile.<a <a href= http://www.vuittonb..gt;vuitton outlet</a>href= http://www.vuittonb..gt;vuitton outlet</a>
-Campana chiave in pelle di vitello<a href= http://www.vuittonb..gt;vuitton outlet</a>
-Mano o trasportare della spalla<a href= http://www.vuittonb..gt;vuitton outlet</a>
-Chiusura zippato<a href= http://www.vuittonb..gt;vuitton outlet</a>
<a href= http://www.vuittonb..gt;vuitton outlet</a>-Fodera textile firmato con piastra Louis Vuitton Inventeur tessuta
-Dimensioni (LxHxP): 8,8 'x 4.9' x 2 '<a href= http://www.vuittonb..gt;vuitton outlet</a>
2012-07-15, 02:08:19
anonymous from China  

Once you've selected your colours, the ateliers at Louis Vuittonthen use unique software to design your one-of-a-kind
http://www.vuittonb..prezzo.com Louis Vuitton Sunglasses
http://www.luisvuit..utlet.info Louis Vuitton handbags
http://www.LouisVui..nborsa.org Louis Vuitton Sneakers
http://www.borsalou..itton.info Louis Vuitton Bel
This image was also posted here:
What is the best radar detector?



Keywords:
2012-07-16, 19:42:17
anonymous from United States  
McCann-Erickson Guangming Beijing, to color, passion and fashion light up the fashion sports brand Lotto, <a href=' http://www.tophogan...com'>
hogan scarpe</a>released in May-Lotto “as I type” series of spring and summer fashion campaign ads. Sub-set of brand advertising, womens, mens shoes,<a href=' http://www.tophogan...com'>
scarpe hogan</a> and a monument commemorating 82 edition of four pictureto taste and sexy as the keynote for the young consumer group new Lotto (Lotto) and with the diverse nature of fashion experience.

the spring and summer series is a giant Chinese sports brand – Lotto Li Ning in China to obtain <a href=' http://www.tophogan...com'>
hogan outlet</a>the distribution rights, the first release of advertisements. This is the brand back to the Chinese market after the debut. Lotto spring and summer<a href=' http://www.tophogan...com'>
outlet hogan</a> “as I type” series of ads in print-based, with a series of online and offline marketing methods to build. Lotto China hopes that the series of ads show Lottos new look.

Lotto Sports (Lotto) Abel Wu, general manager of China and the<a href=' http://www.tophogan..'>hogan prezzi</a> brands marketing manager Kitty Guo expressed; “elements of todays young life rich, antenna diversity, the pursuit of individuality, styles, and diverse with their way of life, while the Italian Lotto inherent elements of fashion and sports fits the mentality of young people and needs. ” < P align = left> McCann Erickson Guangming Beijing also found that Chinas young people eager to break, hoping to unconventional ways to<a href=' http://www.tophogan..'>hogan interactive
</a> grow and realize their value; they do not want to be the spiritual consciousness of the real world setting. The clothing advertised a young youth, personality and attributes of the best carrier groups. Based on this discovery, McCann-Erickson Guangming Beijing for the development of Lotto, “refused to shape” the strategic points, and the careful efforts of creative <a href=' http://www.tophogan..'>hogan rebel
</a>teams for the Lotto to create the spring and summer “as I type” campaign.
You are on page 1 of 2, other pages: [1] 2

 

 

NEW: Optional: Register   Login
Email address (not necessary):

Rate as
Hide my email when showing my comment.
Please notify me once a day about new comments on this topic.
Please provide a valid email address if you select this option, or post under a registered account.
 

Show city and country
Show country only
Hide my location
You can mark text as 'quoted' by putting [quote] .. [/quote] around it.
Please type in the code:

Please do not post inappropriate pictures. Inappropriate pictures include pictures of minors and nudity.
The owner of this web site reserves the right to delete such material.

photo Add a picture: