(FROM THE DAILY PFENNING)
I’ve told you all this before… But Clinton put the onus on Greenspan to come up with a plan to lower inflation… Greenspan hired the Boston Commission, who came up with hedonic adjustments to the inflation calculator, and voila! Inflation was lower, and so were interest rates…. The biggest change was to allow substitutions for the items in the basket that were used previously , when their prices got too high….
For instance, if steak got
too expensive, they would say that mom’s would substitute hamburger, so that’s
what they did, they substituted by taking steak out of the basket of goods, and
adding hamburger…. And so on through the years…. They took out housing and
substituted rents, they played these games with the Inflation Calculator… So, if
they want to figure out to get inflation going again, calculate it like it was
pre 1995….
John Williams at
Shadowstats.com does a fantastic job of calculating inflation the way it was
calculated Pre 1995… Right now, he’s showing that CPI (consumer inflation) is
above 4%.... While the CPI that is hedonically adjusted is just .3%.... And
don’t forget what I showed you a couple of months ago where the Chapwood Index….
They show the real price increases in goods & services for the top 50
cities, and just for the top 10 their 2020 inflation average is 10.8%....
