Post by Admin on Jul 24, 2021 16:29:39 GMT -6
Originally posted on FaceBook May 14, 2021 with link (may be dead) - moved here July 24, 2021
There has been a lot of pushback on social media against people I follow or read who are posting about inflation. There are people out there who show CPI data going back to WWII or even to before the Great Depression to back up their claims.
So I am making this PSA for all those folks blindly following along by the government's data, statements, proclamations, etc.
The CPI has been reformulated twice. Once in 1980 and again in 1990. Comparing modern CPI data to anything previous to 1990 means that you are comparing data sets with completely different baselines and your math/conclusions are meaningless.
If you calculate this week's CPI rise of 4.2% year-over-year with the 1980 baseline, the actual value is 12%. 12% is a typical value previously seen in the 70's and early 80's.
So, while what is being reported mathematically about inflation is technically correct, the truth is something different. To read more, please click on the link in the first comment below.
If you would like to know more, discuss this or learn about ways to protect yourself from the upcoming, please comment or ask questions below. All will be answered in some form (there may be things I don't know too) and no comments will be deleted by me as part of this discussion. Thanks for reading.
www.shadowstats.com/alternate_data/inflation-charts?fbclid=IwAR2kMvhECyJpYwo7wM4gmlIk4btGoN47umzkn4v_oEbjuD9PLCanInYFJ7o
There has been a lot of pushback on social media against people I follow or read who are posting about inflation. There are people out there who show CPI data going back to WWII or even to before the Great Depression to back up their claims.
So I am making this PSA for all those folks blindly following along by the government's data, statements, proclamations, etc.
The CPI has been reformulated twice. Once in 1980 and again in 1990. Comparing modern CPI data to anything previous to 1990 means that you are comparing data sets with completely different baselines and your math/conclusions are meaningless.
If you calculate this week's CPI rise of 4.2% year-over-year with the 1980 baseline, the actual value is 12%. 12% is a typical value previously seen in the 70's and early 80's.
So, while what is being reported mathematically about inflation is technically correct, the truth is something different. To read more, please click on the link in the first comment below.
If you would like to know more, discuss this or learn about ways to protect yourself from the upcoming, please comment or ask questions below. All will be answered in some form (there may be things I don't know too) and no comments will be deleted by me as part of this discussion. Thanks for reading.
www.shadowstats.com/alternate_data/inflation-charts?fbclid=IwAR2kMvhECyJpYwo7wM4gmlIk4btGoN47umzkn4v_oEbjuD9PLCanInYFJ7o