It’s All Good
May 14th, 2008 by 
reality
The government reported a benign CPI number this morning. While from a long-term point of view, I’m a deflationist, it seems contrary to experience that gasoline prices fell in April. In this area, they rose about 25 cents per gallon. According to the Chron:
The nationwide average for regular jumped 36 cents in the past month, to hit $3.73, while California’s average increased 15 cents to $3.94.
Paradoxically, the government also reported that housing prices rose. Really?
CPI seems to be diverging ever further from experienced reality.
Posted in Government, Inflation & The Dollar | 
May 14th, 2008 at 4:03 pm
I’ll tell you exactly why the CPI numbers say there is little inflation when anybody who can fog a mirror knows otherwise.
It’s because Social Security payments are indexed to inflation under “cost of living” increases. The slightest “official” increase in inflation means millions of more dollars must be paid out of a federal budget that is already essentially bankrupt. They don’t want to spend any money on crap they think is unecessary, like helping the citizens of this country.
May 14th, 2008 at 5:05 pm
Lies, damn lies, and (government) statistics?