The euro now costs $1.22 USD. I have now suffered 13% inflation in the 13 months that I have been in Europe.
Since the US still imports stuff from the ROW, I’d imagine we’re going to start seeing some of the impact of the horseshit weak dollar on US domestic consumption inflation one of these days soon.
We already have massive housing inflation. The NARcos reported 12% inflation on home sales last month.
But that’s not “inflation.” It’s “growth,” according to Wall Street’s bought and paid for handmaiden media. 😠😬 And home prices are NOT INCLUDED in CPI under the theory that houses are assets and are not consumed. Only goods and services that are consumed count.
House prices WERE included in CPI until 1982. The Reagan Administration removed them after years of raging housing inflation pushed the CPI up so fast that business could no longer afford to index their union labor contracts to CPI, and the government couldn’t afford the CPI indexed government salary and social security increases, and other indexed contracted costs, like war materiels contracts. So they shitcanned house prices and replaced them with that phony-assed maded up number, “Owner’s Equivalent Rent.”
But it works for them because it results in the massive understatement of CPI as an inflation measure. Given the weighting of OER in the Core CPI, if they used real house prices instead. CPI would be around 5%, not 1%.
Make no mistake. The truth may lag, but it’s coming to a manipulated inflation measure near you. Stay tuned.
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