Hogwash CPI Numbers!
Source: http://blogs.moneyandmarkets.com/blog/real-wealth/0/0/hogwash-cpi-numbersPosted on Monday, June 16th, 2008 | In Asia, Current Market News
The Labor Department reported on Friday that the US Consumer Price Index (CPI) rose 0.6% in May — the most since November and reversing a three month downward trend — as the high price of oil sent the price of goods higher.
While I expected the number to come in on the high side, it grossly underestimates the real inflation rate. What’s more, the “core” inflation rate, which strips out energy and food prices, was reported to have edged up only a modest 0.2%. Give me a break! That’s not a bad number if you don’t eat and drive!
As I’ve told you before, the government’s CPI number is rigged, using all kinds of manipulations and shenanigans to keep the number absurdly low. Anyone with half a brain can see that the “official” data doesn’t jibe with what consumers are experiencing as prices for everything under the sun climb higher.
And with the declining dollar and the Fed’s easy money policy, which I don’t expect to change anytime soon, much more inflation is ahead.
My estimate: The real inflation rate is running around 8%-10% and will jump even higher to about 15%, even 20% or more!
Last 5 posts by Larry Edelson
- Chinese Researchers Confident of 8% Growth - January 7th, 2009
- China Accelerates Filling Up Its Oil Reserves - January 7th, 2009
- Cautiously, Steelmakers Raise Prices, Reopen Mills - January 7th, 2009
- Dollar’s fall last week is exactly what I’ve been warning about! - December 15th, 2008
- Real values ... real opportunities ... and real money ... - December 12th, 2008
Asia, Brain, Consumer Price Index, core inflation, Cpi Number, Cpi Numbers, Current Market News, Declining Dollar, Downward Trend, Easy Money, Everything Under The Sun, Food Prices, Hogwash, Index Cpi, Inflation Rate, Jibe, Labor Department, Manipulations, Money Policy, Price Of Oil, Shenanigans, Us Consumer Price Index
 About Larry Edelson (http://blogs.moneyandmarkets.com/blog/real-wealth)
With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research’s customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors. Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com Mr. Edelson holds a B.A. degree from Columbia University. |
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