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Enter the Repo Man~ Exit Inflation Tax Usury
By Rich Cash
With Shadowstats.com 1980 methodology CPI at 10%, perhaps it is time to finally face financial reality.
http://www.shadowstats.com/alternate_data/inflation-charts
We are not going up anymore. We are going down.
CPI methodologies were repeatedly revised in the 80s and 90s by government economists to reduce government COLA Cost of Living Adjustments.
This also disguised the very real deflation in US wages and standards of living since then, while the number of billionaires and millionaires multiplied.
The American Dream went from the Ozzie and Harriet one-income family to Two and A Half Men Stars, with families living together with all working.
CPI hides the very real facts of consumer price deflation.
Every month the BLS Bureau of Labor Statistics sent workers into stores to note price labels.
If the price sticker did not change, the CPI did not change.
It did not matter if the same product was sitting on the shelf unsold and sold elsewhere at a discount.
The CPI measures rent equivalents rather than real total housing costs.
The Core CPI also routinely excludes the prices of energy and food, routinely dismissed as more volatile non-Core CPI factors.
All of this disguises what is really going on, represented in falling real markets, for instance China falling -20% in 5 weeks and
hedge fund managers liquidating 14% and more of their risk assets.
In the very real tangible terms of gold, we passed the Jubilee peak of market inflation in the Jubilee Year of 2000 declared by the Pope.
Since then we sailed Fed Treasury waves of engineered monetary inflation bailouts to fight the underlying fundamental declining trend
with nominal new financial alchemy risk asset highs.
These only temporarily contained the demographic de-leveraging power of the remaining market economy.
