The CPI no longer accurately measures inflation
As posted on the Schiff Report You Tube Channel on 1/10/13
| In this clip, Peter Schiff explains that the U.S. Bureau of Labor Statistics "Consumer Price Index" (CPI) is no longer a tool to accurately measure inflation, but rather an instrument of deception the government uses to hide accelerating inflation from the public and financial markets. Modest CPI increases over the past several years do not reflect an absence of inflation, but rather an intentional design flaw in the index that fails to fully capture the magnitude of price increases. Central bankers drawing economic conclusions regarding inflation and monetary policy based on this highly flawed data point are making a major policy error. Example: Prices for the twenty items in our basket rose 44.3% during a ten-year period despite an official rise in the CPI of just 27.5% during the same time frame. But that is using official government numbers to evidence those price increases. However, judging by the inaccuracy of government numbers on other items, such as newspapers and health insurance, the actual rate of increase of the prices of the goods in our basket was likely much higher than what the government claimed! Peter Schiff, is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut, and CEO of Euro Pacific Precious Metals, LLC, a gold and silver dealer based in New York City. |
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