CPI calculation: Digging into the real numbers
By Daniel at 17 January, 2010, 1:46 am
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
The MSM is ecstatic about our low inflation in December. Just one problem. Housing makes up 43% of the CPI calculation. Gasoline makes up 3% and food makes up 8% of the CPI calculation. So, the government tells you there is no inflation because your house price is declining and new car prices are declining. Meanwhile, anyone who lives in the real world has seen gasoline prices rise 53% in the last year, clothing prices jumped 4.8% in December, and food at home jumped 3.6%. Again, do not believe the headlines without digging into the real numbers. The most interesting item was at the very bottom of the chart.
Purchasing power of the consumer dollar
(1982-84=$1.00)…………………….. - $ .463
Purchasing power of the consumer dollar
(1967=$1.00)……………………….. - $ .155
The government is stupid enough to show you that the USD has lost 53% of its purchasing power since 1982 and 85% of its purchasing power since 1967. No better data is needed to get rid of the Federal Reserve.
http://www.bls.gov/news.release/cpi.t01.htm
- JimQ
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.