A Fed governor recently tried to explain to an audience of ordinary citizens how the government figured the “core” inflation rate. The lumpen didn’t go for it at all. They heckled the poor man. “When was the last time you went to the supermarket,” they asked.
The most recent inflation numbers tell us that prices rose 0.5% in February. For the mathematically challenged dear reader, this is an annual rate of 6%, or 550 basis points above the rate at which the Fed lends money.
But wait…the feds tell us not to pay any attention to this number. They want us to focus on the “core” number, from which they’ve taken out the things that are going up – food and energy. Having taken out the prices that are going up – even though they are essential items – they thus magnify the items that are left. Notably, housing. And guess what? Housing is going down. So, falling house prices make it possible for the feds to report a low “core” rate of inflation – which is a lie and a fraud. The average family is actually spending more and more money just to keep food on the table and gas in the tank.
And here’s another counterfeit figure from the feds: it was widely reported last week that the unemployment rate was down to its lowest level in almost two years. The unemployment numbers are so cruelly twisted by the feds we feel sorry for them. The most obvious way is by means of “seasonal adjustments.”