Ron Paul put on a show at Fed Chairman Ben Bernanke's testimony on monetary policy earlier today—even challenging the Fed to let him pay his taxes in gold.In his rant, Paul argued that inflation was actually more like 9 percent—and not the 2.9 percent increase that Bureau of Labor Statistics says we've seen in the last 12 months—based on the old CPI statistics.
This "old measure" of measuring consumer prices actually touches on a much larger debate–one that has been spearheaded by John Williams and his website Shadow Government Statistics. Ron Paul's website actually cites Williams in many of its economic commentaries.
The stats
Williams's research contends that the 12-month inflation statistic we should have seen last month was 10.5 percent, arguing that the basis for calculating CPI back in 1980 was the pure formula before "the reporting system increasingly succumbed to pressures from miscreant politicians, who were and are intent upon stealing income from social security recipients, without ever taking the issue of reduced entitlement payments before the public or Congress for approval." Read more.......
when you are in control of the numbers that are reported and you don't like how they come out, you simply change what numbers go into the figure...Ron Paul is right to call them on this.
ReplyDeleteCPI doesn't include food or fuel, does include housing. Housing in decline offsets many other inputs rising...CPI-U and CPI-W include food and fuel and show inflation. You can say there is little transparency huh. They say complication on purpose is to hide something? gee i dunno
ReplyDeleteThe FED has the means, motive and opportunity to commit the crime of inflation. Make no mistake...it is a crime. It is THEFT. And the well-connected benefit most since they have the assets that rise with inflation, unlike us unwashed masses. Who and how many own the vast majority of the stock market? Get it now? The author needs to get a life and for God's sake, pick another field to work in. This author is a complete and total fool. All hedonics did was take PRODUCTIVITY and instead of giving it to workers, it caused them to work harder for less or the same (if they are lucky). Or did the author think that the FED was doing us all a favor with hedonics? Gee, how sweet....I'm sure if the masses were getting outsized raise, an argument could be made. Bu t that's not happening now, is it? That is why two income families can barely make it today. If the author went to college.....he needs to get a refund. And better yet, forget what he was taught.
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