Benny & The Feds - Inflation Disconnect
In last weeks posting Total & Core CPI we stuck to our long held belief that the primary purpose for the CPI is the MANAGEMENT of inflation fears.
Which explains why the CPI as calculated is intended for obfuscation and disinformation to the public at large.
Some logic that validates our view from Bill Fleckenstein's latest missive.
"I believe that the CPI is woefully understated, for reasons related to hedonics, owner's-equivalent rent and substitution."
"If one wanted to make the case that inflation is not under control in this country and that the men at the Fed are serious and intent on doing something about it, that would be a logical, consistent argument."
"There seems to be denial about inflation being a problem -- witness the repeated use of "core inflation," which is generally used to mean all the things that didn't go up in price. Then, contrast this sanguine view of inflation with the fear that Benny B. is going to get "tough.""
"When I look at the universal denial of inflation on the part of the public at large, Wall Street, (the bond market) and the Fed, I find it quite incongruous that the markets fear the Fed will push rates up to contain something that everyone has agreed is not a problem."
"I'm sorry, but I just don't think that is logical. In fact, to me, it's a disconnect."
Obviously, Fleck and others can see through the machinations of the "ministry of information". The problem is too many cannot and therein lies the disconnect which is a very large problem and one which will have dire consequences in the end.
Which explains why the CPI as calculated is intended for obfuscation and disinformation to the public at large.
Some logic that validates our view from Bill Fleckenstein's latest missive.
"I believe that the CPI is woefully understated, for reasons related to hedonics, owner's-equivalent rent and substitution."
"If one wanted to make the case that inflation is not under control in this country and that the men at the Fed are serious and intent on doing something about it, that would be a logical, consistent argument."
"There seems to be denial about inflation being a problem -- witness the repeated use of "core inflation," which is generally used to mean all the things that didn't go up in price. Then, contrast this sanguine view of inflation with the fear that Benny B. is going to get "tough.""
"When I look at the universal denial of inflation on the part of the public at large, Wall Street, (the bond market) and the Fed, I find it quite incongruous that the markets fear the Fed will push rates up to contain something that everyone has agreed is not a problem."
"I'm sorry, but I just don't think that is logical. In fact, to me, it's a disconnect."
Obviously, Fleck and others can see through the machinations of the "ministry of information". The problem is too many cannot and therein lies the disconnect which is a very large problem and one which will have dire consequences in the end.
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