Why the lies and deception?
Because they have to.
There's no way they could do social security cost of living allowance increases to match true inflation, otherwise the US would go bankrupt even faster than it eventually will.
Here's a look at CPI based on how the government computed it prior to the recent changes. Yup, 10% this year. Feels about right. And you ain't seen nothin' yet. Because Ben Bernanke hates you.
Better start making more, spending less or investing wiser America. Or else your standard of living is about to plummet.
Prices are the Cart, Money Supply is the Horse - By Peter Schiff
The sad truth is that despite the best efforts of monetary economists everywhere, fundamental misconceptions about inflation remain entrenched in government, business, and the media.
Inflation has only one cause and that is the Federal Reserve itself. In the United States, the supply of money and credit is regulated by the Fed. Since inflation is by definition an increase in the supply of money and credit, only the Fed can create it. If the money supply were held constant, increases in some prices would be offset by decreases in others.
For example, on Wednesday the government told us that consumer prices as measured by the CPI rose by only 2.8% over the past year. My estimate is that the actual rise was at least three times as great.
October 23, 2007
Posted by blogger at 10/23/2007