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


Content-type: text/html

Comments:

You are on page 2 of 2, other pages: 1 [2]
2012-07-19, 21:26:46
1131621110@qq.com from United States  
Tali signore capire <a href=' http://www.tophogan..'>hogan scarpe</a> la loro soddisfazione nel possesso di questi caldi mode ad una frazione del Chargee. Indubbiamente è davvero uno stilista geniale. Le sue scarpe <a href=' http://www.tophogan..>scarpe hogan</a> sentirete a vostro agio in piedi. Che è veramente utile per fare di <a href=' http://www.tophogan..'>hogan outlet</a> te una donna sicura di sé e per lo stile, fiducia in se stessi è un must. Queste scarpe aiuterà anche a farvi una persona
<a href=' http://www.tophogan...com/'> outlet hogan</a> migliore. Signore che amano gli ultimi stili desiderano le linee taglienti e originalità creativa di scarpe. Signore che non <a href=' http://www.tophogan...com/'> hogan prezzi</a> vogliono pagare somme pesanti, ma ancora voglia di essere alla moda, spendere sensibilmente. Queste <a href=' http://www.tophogan...com/'>
hogan prezzi</a> donne optare per scarpe all'ingrosso. I consumatori intelligenti <a href=' http://www.tophogan..'>hogan interactive</a> non lasciare che questo prezzo di high-end designer di calzature li trattengono di <a href=' http://www.tophogan..'>hogan rebel</a> indossare il più lussuoso.
2012-07-19, 21:27:28
1131621110@qq.com from United States  
Tali signore capire [url= http://www.tophogan..com/]hogan scarpe[/url] la loro soddisfazione nel possesso di questi caldi mode ad

una frazione del Chargee. Indubbiamente è davvero uno stilista geniale. Le sue scarpe scarpe

hogan sentirete a vostro agio in piedi. Che è veramente utile per fare di [url= http://www.tophogan..com/]hogan outlet[/url] te

una donna sicura di sé e per lo stile, fiducia in se stessi è un must. Queste scarpe aiuterà anche a farvi una persona
[url= http://www.tophogan..tlet.com/] outlet hogan[/url] migliore. Signore che amano gli ultimi stili desiderano le linee taglienti e

originalità creativa di scarpe. Signore che non [url= http://www.tophogan..tlet.com/] hogan prezzi[/url] vogliono pagare somme pesanti,

ma ancora voglia di essere alla moda, spendere sensibilmente. Queste
hogan prezzi donne

optare per scarpe all'ingrosso. I consumatori intelligenti [url= http://www.tophogan..com/]hogan interactive[/url] non lasciare che

questo prezzo di high-end designer di calzature li trattengono di [url= http://www.tophogan..com/]hogan rebel[/url] indossare il più

lussuoso.
2012-10-17, 12:19:18
 
rating
zawghhji <a href=' http://paydayloansnsa.com/ '>pay day loan</a> >:-OOO <a href=' http://uspaydayloansti.com/ '>pay day loan</a> >:]] <a href=' http://paydayloanso..inete.com/ '>payday loan</a> 5770
2013-02-05, 10:41:26
 
rating
loqudg <a href=' http://genericviagratd.com/ '>generic viagra</a> =-] <a href=' http://genericcialistd.com/ '>generic cialis soft online</a> %-[[[
2013-02-10, 20:51:53
 
rating
aqwvdhr <a href=' http://paydayloansvba.co.uk/ '>payday loans</a> >:]] <a href=' http://paydayloansvba.com/ '>personal loans</a> 8521 <a href=' http://paydayloansvba.ca/ '>pay day loans</a> >:]]
2013-02-15, 03:56:03
 
rating
tiyfqj <a href=' http://paydayloansvbd.com/ '>fast cash advance</a> PQhCM <a href=' http://paydayloansvbd.ca/ '>pay day loan</a> bwwVCB <a href=' http://paydayloansvbd.co.uk/ '>Payday UK</a> 9843
You are on page 2 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: