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The Fed’s Been Lying to Us About Inflation; It’s Frighteningly High

This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission.

Even by the deeply flawed and misleading Consumer Price Index (CPI), inflation is at the U.S. Federal Reserve’s target. By other measures that more accurately portray inflation, it is well above target.

The Fed will not be deterred from continuing to tighten, continuing to remove money from the system, just because of the silliness that “CPI missed expectations.”

It’s still at least 2%… and it’s heating up.

Furthermore, we know beyond a shadow of a doubt that, as the Fed raises the federal funds rate target, it will only stimulate more inflation. The Fed will always be behind the curve, because the Fed is always back there pushing the curve ahead.

Every time it raises the federal funds target rate, the Fed signals to the decision makers in the U.S. economy that it expects more inflation, and consumers and businesses behave accordingly. I showed you the history of that a couple of weeks ago; the charts don’t lie.

And the fact is that we really have more – much more – inflation than they’re telling us.

This isn’t a mistake, it’s not a miscalculation.

Rather, it’s a deliberate obfuscation, and today, I’m going to show you exactly what the Fed leaves out (and what that means for you)…

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The post The Fed’s Been Lying to Us About Inflation; It’s Frighteningly High appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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