Thursday, January 10, 2013

Inflation Propaganda Exposed

The CPI is no longer a tool to accurately measure inflation, but an instrument of propaganda the government uses to hide accelerating inflation from the public and financial markets. Modest CPI increases over the past several years do not reflect an absence of inflation, but a design flaw in the index that fails to fully capture the magnitude of price increases. Central bankers drawing economic conclusions regarding inflation and monetary policy based on this highly flawed data point are making a major policy error. Note: The twenty items in our basket registered a 44.3% price gain despite an official rise in the CPI of just 27.5%. But that is using official government numbers to evidence price increases. However, judging by the inaccuracy of government numbers on items like newspapers and health insurance, the actual rate of increase of the prices of the goods in our basket was likely much higher than the numbers the government used in its calculations! Sign up for my newsletter:

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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