29 April 2008

More Signs (and Pictures) that Official Government Inflation Stats are BS

We are starting to see more articles, like this at San Diego Union Tribune, noting that official government inflation statistics are a crock.

I will note that the changes in 1983 to a large degree took housing out of the picture, which is why Alan "Bubbles" Greenspan was so bullish on real estate*, and those in 1998 used hedonic mumbo-jumbo to create the illusion of low inflation.

If you assume that inflation is 2% more than official numbers over the past 35 years, prices have doubled relative to official inflation at 3¼% more, it's triples, and at 4%, it quadruples.

We may be seeing a tremendous drop in the standard of living of the average American over that time that has been deliberately masked by our government.

*It allowed him to call inflation in a necessity, housing, an increase in wealth. If memory serves, Greenspan was at the center of both adjustments


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