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The Federal government is just making up inflation numbers of thin air for propoganda purposes.
A vast majority of Americans love it when the government economists lie because they can have a zero-interest rate policy in a hyper-inflationary environment.
This whole cherade is very interesting. The United States is like a person who is a 500 pound wrinkled old prune in a $50,000 silk and diamond enrusted dress struting around like a supermodel.
They manipulate a fake formula where the inflation rate is about 1% year over year.
They have to flat out lie because the fiat money economy would collapse otherwise.
Anyone who questions these made up numbers is a "cynical debbie downer", "should have known better and leveraged to hilt on real estate" or "should have bought oil future"
CPI says fuel oil down 16.5%, yet a barrel of oil has gone from $50 in February 2020 to $60 today. Barrel of oil is up 20% year over year.
CPI says cost of shelter gone up 1.6% year over year, when National Association of Realtors says 14.9%
CPI says cost of shelter gone up 1.6% year over year, when National Association of Realtors says 14.9%
1.6%?
Do they really think anybody will believe that?
Edit: But look at used the Used cars and trucks line. It's up 10%. I believe that figure. Since Covid, people are being more careful with their dollars. Used car and truck prices have gone up noticeably.
Edit: But look at used the Used cars and trucks line. It's up 10%. I believe that figure. Since Covid, people are being more careful with their dollars. Used car and truck prices have gone up noticeably.
Used prices might be up due to lack of supply. This is the deadest market I've ever seen in my life. No one is selling their stuff.
The Federal government is just making up inflation numbers of thin air for propoganda purposes.
A vast majority of Americans love it when the government economists lie because they can have a zero-interest rate policy in a hyper-inflationary environment.
...gobbledygook...
CPI says cost of shelter gone up 1.6% year over year, when National Association of Realtors says 14.9%
Let me dumb this down for you, under the assumption you are sincere.
My cost of shelter went down last year. My insurance was unchanged, my mortgage was unchanged, and because of a property tax eval/rate recalc, my property taxes actually decreased.
There are approximately 90MM homeowners in the US. It is quite possible their "cost of shelter" also didn't rise significantly. There's about 120MM total households in the US. So, the increase in cost of all those renters would have to be huge - in a pandemic - to move the needle.
Now, there were (spitballing) 6MM existing homes sold last year. The median price of that little 10% of total homes owned that were sold last year increased 14.9%.
I can't speak definitively to your oil barrel example except to say none of us buy it by the crude barrel, we buy it by the refined gallon.
Let me dumb this down for you, under the assumption you are sincere.
My cost of shelter went down last year. My insurance was unchanged, my mortgage was unchanged, and because of a property tax eval/rate recalc, my property taxes actually decreased.
There are approximately 90MM homeowners in the US. It is quite possible their "cost of shelter" also didn't rise significantly. There's about 120MM total households in the US. So, the increase in cost of all those renters would have to be huge - in a pandemic - to move the needle.
Now, there were (spitballing) 6MM existing homes sold last year. The median price of that little 10% of total homes owned that were sold last year increased 14.9%.
I can't speak definitively to your oil barrel example except to say none of us buy it by the crude barrel, we buy it by the refined gallon.
What he/she said...plus.
The calculation method was quietly changed by both President Clinton and Carter to reduce the impact of housing costs on the CPI numbers.
Where were you 20 and 40 years ago??
Most economists still believe that inflation is OVERSTATED. However, the Bureau of Labor Statistics does come up with different CPI indexes for different groups.
If I remember correctly, the only group for which inflation, is UNDERSTATED is seniors.
Used prices might be up due to lack of supply. This is the deadest market I've ever seen in my life. No one is selling their stuff.
Except houses.
Probably because they know few will pay what it's worth. People only want your stuff if you are damn near giving it away, or selling something truly unique, rare, etc. If you do have something desirable to sell, expect to be inundated with requests to sell for 50% less than what it's worth, just because. Who wants to deal with that hassle and wasted time, just to receive some perpetually declining fiat currency? Most people are probably better served hanging on to their stuff, since so many things tend to get more valuable with time.
The CPI is permanently rigged to show 2% inflation or less. The government has every incentive to understate the rate of price increases caused by inflation. Trusting the government to put out honest statistics on inflation is like trusting the mafia to put out honest statistics on crime.
Can the Fed raise interest rates? If so, how much? Result?
If inflation happens and the Fed does NOT raise interest rates, what will be the result?
A higher rate of interest to fight inflation would immediately cause a cascade of bankruptcies and defaults, leading to a deflationary spiral and collapse. The Fed is powerless to fight inflation- it can only relent to inflation whilst pretending like it isn't happening. No central banker today has the pain tolerance of a Paul Volker.
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