Inflation: Is the Government Lying?

http://www.reuters.com/article/ousiv/idUSN1341778020080514

This may be the clearest evidence I’ve ever seen that the government fudges economic statistics and lies to the American people about the state of our economy.  Check out this article.  With food and energy prices soaring by the day, the government has the gall to say:

Consumer prices rose a smaller-than-expected 0.2 percent in April as energy prices held steady, a Labor Department report on Wednesday showed.

… During the month, energy prices were unchanged…

… So-called core prices, which exclude volatile food and energy, were up just 0.1 percent…

Can you believe this?  Only yesterday, the Commerce Department reported that import prices were up 1.8% last month alone, on top of the 1.0% rise the prior month.  And yet, the CPI is only up 0.2%?!?!?! 

Why is the government fudging on the CPI (consumer price index)?  Three reasons:

  1. They’re concerned about the psyche of the stock market.
  2. They don’t want to give the Federal Reserve justification for reversing policy and raising interest rates.
  3. Most importantly, the annual raise in Social Security benefits is determined by the CPI.  They fudge the CPI to cheat the elderly out of the money they need to survive, very slowly whittling Social Security down to nothing. 

This data should prompt outrage and journalists should be demanding answers on how the CPI could be so benign when all of the evidence points to the contrary.  Will they?  I very much doubt it.  Journalists with that kind of analytical thinking have vanished, gone with the winds of globalization.

 

 

Advertisements

One Response to Inflation: Is the Government Lying?

  1. Pete Murphy says:

    http://www.reuters.com/article/ousiv/idUSN1428112620080514?sp=true

    Apparently Reuters was suspicious of the inflation data, and did a little digging. The explanation they were given by the BLS (Bureau of Labor Statistics) might be believable if it wasn’t for the fact that inflation of energy prices has been consistently understated for the past few years.

    Hey, BLS, just give us the straight data and stop trying to obfuscate the truth about inflation by resorting to explanations of seasonal variations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: