Do you believe the government accurately reports inflation numbers?
In the 1980’s the government decided to remove housing price increases from the inflation index. If the government were to accurately report housing prices and more accurate numbers of inflation, the government would have been reporting inflation numbers closer to 9% rather than the 2% they have been reporting over the last few years.
It does not take much to figure the price of everything has gone up over the last 10 years. Ask anybody who has a family, goes to a grocery store, send kids to school or buys a house and you would be hard pressed to find anybody who says that prices have either stayed the same or come down. How is it possible that the government continues on with the farce that they say that inflation is benign?
The dollar has roughly declined 40% over the last few years which coincides with the cumulative effect of the US understating inflation. So on average if the government has been understating inflation by 4% for the last 10 years that would equate to the 40% decline. Hence the market has been telling you what the government won’t. In addition with the continued easing policy- inflation will begin to heat up again.
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