Inflation Is About To Explode Higher
“Those who are capable of tyranny are capable of perjury to sustain it.” ― Lysander Spooner
We all know the BLS artificially suppresses the CPI through bullshit substitution adjustments, quality adjustments, and various other incomprehensible hedonic adjustments made by government apparatchiks at the behest of their politician bosses. Some obscure theoretical academic calculation called owners equivalent rent accounts for almost a quarter of the CPI weighting.
It has no relation to reality as it has increased by only 12% since 2012, while the Case-Shiller Housing Price Index is up 52% over the same time frame. The median price of existing home sales is up 30% over the same time frame. It also has no relation to rent increases, as they have gone up 22% nationally since 2012. It’s essentially a made up number by goal seeking bureaucrats doing the bidding of their establishment masters.
Prior to Greenspan and his cronies getting their grubby little non-callused academic hands on it in the 1980s, CPI reflected measuring the cost of maintaining a constant standard of living, as measured by a fixed-basket of goods. The purpose of all these adjustments and calculations has been to systematically repress the reported level of inflation as a way to keep the Social Security system solvent, allow the Federal Reserve to keep interest rates falsely lower for their banking cartel owners and the biggest debtor on the planet – the U.S. government, and to conceal from the average American how far their standard of living has fallen. It ain’t working.
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The average household might not know real median household income is at the same level it was in 1989, but they know they are treading water on a daily basis – using credit cards to sustain themselves while paying 15% interest to the Wall Street banking cartel.
They know their wages are stagnant and their everyday costs relentlessly rise. Real hourly wages, using the fake CPI, are up just 1.4% in the past year. In reality, using an accurate measure of inflation, real wages are falling. The government can tell them inflation is only up 1.5% in the last year, but they know better. Their real everyday inflation is north of 4%, as measured before the 1990 coverup began. Now, even the BLS is starting to lose control of the narrative of no inflation.
Even the suppressed, manipulated, massaged and adjusted CPI has gone up at an annualized 3% rate over the last two months. Core inflation, which the Fed supposedly basis their interest rate decisions upon, has run at 2.2% over the last year, and has exceeded the Fed’s 2% mandate for 11 straight months. As you can see in the chart above, medical care costs are skyrocketing due to the disastrous Obamacare train wreck. Medical-care prices are up 4.9% in the past year, including a 7% jump in prescription-drug prices (a 24-year high). Medical care commodities are up 5.2% and poised to go higher.
Obama declared to the American people his Obamacare plan would cut the annual average household insurance premiums by $2,500. This bald-faced lie by the slimy snake is revealed in the chart below showing health insurance CPI is up 29% since Obamacare was rammed down our throats. Of course, these fake BLS figures drastically underestimate the true increases, as most hard-working families have seen their premiums rise in excess of 100%, with deductibles increasing by 500%. Close enough for government drones. But, at least they got to keep their doctor. Right?
But the fun has just begun. As Obama takes his victory lap, his prized piece of legislation is collapsing under the weight of government incompetence, outrageously high costs, lack of choice, and not enough young fools willing to pay through the nose for the benefit of lazy, obese, free shit army members. If you thought the 5% medical cost inflation was bad, how about 25%? That will be the average increase for Obamacare plans come November, with 9 states having rates growing by 40% or more.
The BLS not only under-reports actual medical cost inflation but under-weights it in their CPI calculation. It’s almost laughable they give it only an 8.5% weighting when it accounts for at least 15% of the average household’s expenses. Nothing reported by the government or bloviated by a corrupt politician can be believed. I was reminded of an Obama whopper during the debate this week when Hillary declared her ridiculous economic plan wouldn’t add a cent to the national debt.
As he was doing his best snake oil salesman routine in 2009, Obama promised Americans his government controlled health insurance plan wouldn’t add one dime to the national debt. He was right. According to the CBO, it will add 14 trillion dimes ($1.4 trillion) to the national debt over the next ten years. How naive and mathematically inept does one have to be to believe these sleazy power hungry control freaks? Evidently, more than half the willfully ignorant populace will believe anything they are told to believe. Dumber Together.
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