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October, 20 2021

Transportation cost could be reported as decreasing 99.9%?

The US Government inflation calculation substitution switcheroo.



When calculating the inflation of prices of US goods and services, the government has long been known to, and admits to, using substitution in it's calculation. Simply put, if beef for example, is experiencing price inflation at the supermarket, then they substitute say chicken, into the basket of goods measured at that time. So if beef goes from $3 a pound to $6 a pound, and chicken goes from $1 a pound to $2 a pound, you would say the cost of meat increased 100%. But the government say by substituting chicken, then the price of "meat" is actually decreasing. They say meat used to cost $3 and now it costs $2, a 33% decrease. Yay...
The problem is, that is not true. That is like saying that bread and water is the same as lobster and wine.

We know this, why do they think we wouldn't know this? They think if a person went to a restaurant and ordered lobster and wine, and was served only bread and water, that the person would simply accept this? Likely, the entities that perform this expect that no one really looks that deep into the calculation, and they can print anything they want as only the final number they release is taken in. But anyone who looks deeper, knows that the CPI inflation numbers that the U.S. Bureau of Labor Statistics (BLS) report are artificially lowered to look better, i. e. lower than they really are.

Imagine this example, just a made up price example but a valid comparison. Vehicle prices are climbing. Say over the course of a few years the price of a Bentley Flying Spur luxury automobile went from $100,000 to $200,000.
At the same time the average cost of a Chevrolet Impala went from $20,000 to $40,000.
Given this you and I would say the cost of vehicles has doubled over that time frame. However the BLS would say no, now instead of costing $100,000 for a "vehicle," you can get one for $40,000. So, according to them, inflation is decreasing by 60%. Yay...
Seems like a streatch right? So where does this deception end?

Next step is to replace the word "motor vehicle" with "transportation" and say that the price of a big wheel toy tricycle is less than $100, so "transportation" cost has dropped from $100,000 to less than $100. Yay....
So now inflation over that time is actually deflation, and that "transportation" cost went from $100,000 to $100, a decrease of 99.9%. Yay....
Of course you and I would say BS, a bigwheel is not the same as a Bentley.

Are these two things the same?


Bentley vs. Big Wheel Acknowledged Bentley Motors / original big wheel

We know this, and to say otherwise is a lie and also a little insulting. They really think we are this uneducated?
Perhaps they have lost sight of the fact that they are supposed to report true inflation statistics, and instead are trying to print numbers that represent the minimal cost that the middle class can accept. We need this knowledge to plan, to understand that we are being reported misinformation. Inflation is not 2% or 4%, it is really over 10%, so plan accordingly.

The alternative to knowledge and adaptation, in this case is getting buffed thighs driving your big wheel to work every day...





The average US worker works far harder than their counterparts in other developed nations, and get less and less for it every year.
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This release is for informational purpose only.

No legal, financial or investment advise is given, just opinion.

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