Yeah that's problematic, but I think a lot of people who comment on the CPI issue don't really understand the definition of a 'basket' of consumption, or how housing features in that 'basket' of consumption, ie: owners equivalent rent is a component of the basket, not house prices themselves.flyordrive wrote: ↑While I may not always agree with him, he IS correct in that, unemployment #'s AND Inflation are tools for political manipulation and relatively easy to "massage" so to speak. Here's just ONE example:
CPI is a lie.
"The Feds hide this economic nightmare by simply not counting those who are unemployed (lower the denominator in the fraction and your unemployment ratio falls), and by using bogus deflators in their GDP growth numbers (the current CPI is 2.1%... but the Feds calculating the first quarter GDP growth numbers use an inflationary measure of 1.2%).
Change your measurements and BOOM you've got a recovery. It works if you're a Government bean counter trying to keep your job. It doesn't work so well for everyone else." - Phoenix Capital Research
But seriously, if CPI increases were so understated, do you really think people would be lining up to bid the long-term bonds down to these currently unheard-of low yields, even in Canada where we don't have QE? Do you think that good long term inflation hedges such as the stock market and even gold would be priced at such low levels?
CPI rigging makes for good conspiracy theory, but I've not seen any evidence that its actually happening. Certainly not in my own consumption basket.