Here’s an interesting statistic. In a recent survey, the Food and Agriculture Organization said its index which monitors monthly price changes for a variety of staples averaged 231 points in January — the highest level since records began in 1990. This was in 2011. How can this be ignored by so many? The government has decided food prices are too volatile to be considered in how we measure inflation. Doesn’t this theory have to be substantiated when food prices are not volatile and just keep rising? What difference does it make to the consumer if what they are paying more for is considered exempt from being reported? In other words the price you are paying for food is going up but we are not going to report it going up because it might go down? Meanwhile if you are on a fixed income you will have to do with less while we cast an illusion that the inflation we are creating with printed money won’t be reported as threatening to your standard of living.
Instead of rioting in the streets when hyperinflation takes off why don’t we just bombard Congress with the fact that we know they are lying about inflation and we want them to put a stop to it. If the price of bread goes up and we have to pay more for a loaf of bread then don’t tell us the official report says the price of bread isn’t a significant in your calculations of inflation. What is being reported isn’t corresponding to what is happening and that is simple and outright fraud.
The other major component of every day expenses is fuel. This too is being classified as volatile in price. Suddenly volatility is a category that exempts what people use every day as a non reportable inflationary item. This is not some esoteric economic explanation but a simple charlatan’s ploy to cover up what would be readily apparent and soon will be as the facts outweigh the phony reporting. Americans are being bamboozled out of their standard of living by a bunch of noodle heads in Congress that hope they have covered their tracks and are getting away with a distortion that no one will catch on to. So far they are succeeding and it is only because the American shopper is willing to pay more while swallowing the idea they really haven’t lost any buying power. How naive is that?
The lying won’t work as it never does in the long run. As prices escalate the false reporting will become more and more obvious. Inflation has been a near constant for decades and just because the government decided to change the way it reports it doesn’t make it go away. The false reporting will come back to bite us when the reality emerges of what is going on. Just as a person in debt can report his net worth to be more than it is, the final tally tells the real story when the actual worth is determined. This is the time when the loan comes due , the price must be paid and the deception is exposed. Far better to recognize it when it is being perpetrated and expose it now.Tags: Food Fuel. Inflation Lying