The Mogambo Guru comments on the rate of inflation:
You can imagine my response to this arrogance. Finally, once again, having had it Up To Here (UTH) with their insults and rude laughter, I explode in their faces “Inflation is still going up, you morons! Prices are still increasing! Watch my lips, morons! Prices are going up! The stupid CPI may show that the rate of inflation decreased by a lousy tenth of a percent lately, which I don’t believe for a second, but prices are still increasing by 2.2%! So what in the hell are you gloating about when the buying power of your money is being destroyed?”
Well, the conversation got pretty heated after I told them that this discussion about inflation was the perfect opportunity to tell them that I was, again, forced to cut expenses so that I could get a little more money to buy a little more gold, silver and oil.
and
So, I will say that I think that the real reason that the CPI is merely rising 2.2%, and not soaring as a result of all of this money being created around the world, is because the cost of housing constitutes a full 40% of the index, but now that the housing bubble has bust, the glut of housing on the market is causing the cost of housing to plummet, taking the CPI abnormally down.
via Inflation Still a Problem, Despite “Evidence” to the Contrary.
I will also add that the government “adjusts” the CPI, changing what is included and how it is counted, whenever the CPI shows that prices are increasing at a rate that they do not want to report.
After all, if the CPI goes up too quickly or too high, they have to adjust all sorts of things and benefits and payouts, like Social Security, which put the government (meaning us, the taxpayers,) even deeper in debt than it (we) already is (are).
