Dear Money & Crisis Reader, As I keep warning, we are seeing an inflationary spike that will eventually lead to a spectacular crash in stocks. The only reason this isn’t obvious to everyone, is because the official inflation metric, the Consumer Price Index (CPI), uses multiple gimmicks to downplay the true rate of inflation. I outlined one of them last week, noting that according to the CPI, shelter inflation is up just 2.8% in the last 12 months. Bear in mind, the Bureau of Labor Statistics (BLS) is claiming this at a time when apartment rents are up 7%-8.7% and housing prices are up 23%. So, unless you live in a cave, your cost of living in terms of shelter is a whole lot more than 2.8%. In fact, if you used real world data for the CPI’s shelter measure instead of the ridiculous gimmicks employed by the BLS, CPI would be nearly 8%. If you find this hard to believe, consider that the CPI’s less known, less watched, but more accurate cousin, the Producer Price Index (PPI) just clocked in at 7.8% year over year for the month of July. |
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