Sumary of It’s “Permanent” Not “Temporary” – Dollar’s Purchasing Power Plunged At Fastest Pace Since 1982:
- The Consumer Price Index jumped 0.6% in May, after having jumped 0.8% in April, and 0.6% in March – all three the steepest month-to-month jumps since 2009, according to the Bureau of Labor Statistics today..
- This current three-month pace of inflation as measured by CPI has nothing to do with the now infamous “Base Effect,”.
- and when the price change is based on improvements, it is not inflation because you’re getting more as you pay more..
- In practice, this has led to a consistent, purposeful, politically convenient, and bipartisan understatement of inflation as measured by CPI..
- The adjustments have practically eliminated the appearance of inflation as measured by CPI in new vehicles, even though new vehicles have gotten a lot more expensive, with the cheapest cars disappearing from the automakers’ lineups..
- The reason this homeownership component completely misses the red-hot inflation in housing – the loss of the dollar purchasing power with regards to homes – is that it based on surveys of homeowners’ estimates of how much their home would rent for….