Our Government says WHAT inflation rate????

[IHateCNBC]

They use CPI - I believe the number, as do countless most economists.

Most economists know that the CPI is a massaged joke to prop up the USD.   

 

[cute fuzzy bunny]

To be fair, a lot of economists think the CPI overstates "inflation", and a lot think it "understates".

I think its a good idea for people to be informed, and to realize that inflation affects each of us pretty differently. Unfortunately its a long slow effect and making the wrong decisions could lead to some serious financial problems in the long term.

Read this for a good idea of why you should gain as much comprehension on the topic as you can.
http://www.mises.org/freemarket_detail.asp?control=368

And this is a good leaping off point to get some broader scope and different opinions.

http://en.wikipedia.org/wiki/Consumer_price_index

Read some of the articles on how different aspects of the CPI and inflation are calculated, and see if they apply to you.

If you really have too much time on your hands, read this and follow some of the political wrangling that went on around it.
http://en.wikipedia.org/wiki/Boskin_Commission

In short, the Boskin commission argued for a reduction in the CPI's results by a little over 1%, and amidst stern economic opposition the Clinton era congress approved the reduction.

Guess what...the same folks that brought you the Boskin Commission think that the "new" CPI overstates inflation by another 1%...

This is your money folks. Stick your head in the sand or educate yourself.

 

[d]

Most economists know that ...

we all know that gov't is:
1) much too busy printing money ... and since it does so with great abandon, it can easily pay whatever COLA it decides upon;
2) purposefully devaluing the dollar to prop-up corporate profits to fund the campaign contributions to incumbent politicans.
3) etc. etc. etc.
get a grip

 

[IHateCNBC]

we all know that gov't is:
1) much too busy printing money ... and since it does so with great abandon, it can easily pay whatever COLA it decides upon;
2) purposefully devaluing the dollar to prop-up corporate profits to fund the campaign contributions to incumbent politicans.
3) etc. etc. etc.
get a grip

I do got a gripe.  I know it is a sham and invest accordingly.   

 

[IHateCNBC]

Stick your head in the sand or educate yourself.

Then determine their political point of view.