Was the way they measured inflation tweaked during Obama?
Guys are saying that in reality it's closer to 16%
Was the way they measured inflation tweaked during Obama?Cross-post:
Aaaaaand the inflation data is in:
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Futures gone nuts everywhere about 0.5% in response, banks the best, everything's green as this was already priced in (because of course it was, you'd have to be an idiot not to think we were going to see numbers like this) but the best place to be with inflation is of course crypto, and most of that has run about twice as much as equities.
As far as an economic consequence, real wages have dropped. Wage growth is not keeping up with inflation.
Which, if you know anything about fractional reserve banking/fiat currency systems, should not surprise you in the slightest either.
They've been fudging it since long before then.Was the way they measured inflation tweaked during Obama?
Guys are saying that in reality it's closer to 16%
Correct it's decades old. I think the latest was under Obama. Australia has done similar. Reportedly some of the food is up by 30+%They've been fudging it since long before then.
There is a company (I forget who, one of those private intel mobs) that measures it by the old method and yes it's way above the official stats.
Changing how a metric is measured every time it starts getting unfavourable is not a new trick.
Updating this post, apparently panic buying has now set in and a run has begun on it like any run on anything else (a bank, toilet paper etc).My error there, I should have been more specific in the original post....
Off that subject though and looking at economic effects more broadly, the latest one seems to be concern about running short of urea.
Urea being used as an agricultural input as fertilizer plus along with demineralised water it's used as diesel exhaust fluid (DEF, more commonly known by the brand name AdBlue). Now the problem there is that whilst the purpose of DEF is to reduce exhaust emissions of NOx, machinery is programmed so that it can't be used without it. No DEF and the engine goes into limp mode.
Now it seems that there's a shortage of urea so that's going to further add to the supply chain woes if it means trucks stop running, farm machinery stops and so on. Plenty about it in the media and elsewhere at the moment.
AdBlue shortage spells imminent diesel crisis
The looming shortage of diesel exhaust fluid has transport bodies and governments scrambling to prevent a significant supply chain emergency.www.primemovermag.com.au
Supply chain crisis could force cars off roads
The supply chain crisis wreaking havoc across the globe is set to step up a notch, amid reports a disastrous shortage could soon force everyday Aussie motorists off the road.www.news.com.au
Alright so here's one for the econ students or the guys without any kind of formal training, why would we see a divergence like this:
Correct. However there's more than one contributing factor. Can you think of anything else?I would say that the CPI numbers do not represent the actual price inflation that has occurred from the consumer's perspective, and are in fact understating them. The PPI is probably the more accurate figure while the CPI numbers are fudged.
Good post. Also worth noting which products usually get refined into what daughter products vs the alternatives when the primary unrefined supply dries up.
Some things you can make with gas if you can't get oil, some you can make with oil if you can't get gas, some can only be made with one but not the other, so on and so forth. The overwhelming majority of stuff only uses gas if there's no other choice on account of gas being so much more difficult to transport than oil.
A big one for inflation is fertiliser.
They wouldn't be the first authority that didn't want to admit that their control of a particular situation was, shall we say, limited. Remember that confidence is everything at a macro level. And that's before we even start with the competence angle (do you really think that they know what's going to happen/can see the future?).@over9k does anyone other than unsophisticated plebeians believe this shyte from CBs? Are the finance types just playing along until the music stops?
It seems to me only a few actually have their fingers on the pulse, rather than trying to make ridiculous calls that end up wrong almost all the time?
I concluded long ago that being right at the top of the tree is something where the main required skill is not economics or a seemingly relevant field such as math but rather it's acting.@over9k does anyone other than unsophisticated plebeians believe this shyte from CBs? Are the finance types just playing along until the music stops?
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