by argentus maximus, TF Metals Report:
I am thinking about the Consumer Price Index which was designed to show the amount of inflation in the cost of living within the economy. That was before a certain Alan Greenspan came along. Mr Greenspan was a proponent of the benefits of sound money for society. He even wrote a paper on the matter.
For some strange undocumented reason, after Mr Greenspan became the Chairman of the Fed he underwent a character alteration and came up with the idea of making changes to the way the CPI should be calculated. Nowadays the CPI seems to be the index of all things which are not consumed and which do not undergo price increases. So after Mr Greenspan’s change of personality or philosophy, or whatever somebody said to him about his future prospects, – and after the very many following alterations since then in the way the CPI is calculated – the inflation measurement must be viewed with a certain scepticism.
This is not, of course, news to anyone who actually buys such luxuries as food, fuel, or such consumable goods, because their bank balance shows the real story, and highlights the fiction that the CPI has become.
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