Hedonic adjustments let the government say there’s no inflation when in fact high levels of price inflation are all around us…
by Jim Quinn via The Burning Platform
The chart below says there has been 55.6% inflation over the last 20 years. That is just less than a 2.4% annual level of inflation.
What a load of bullshit. Let’s look at a couple of categories listed below and do a smell test. Everyone knows the prices of TVs have fallen dramatically, but 99% – I don’t think so. I was able to find the price of a 28 inch Samsung TV in 1997 – $750. The same size Samsung TV costs $200 today. That’s a 73% decrease. The good old BLS says the decrease is really 99% because the new TV does so much more. They call this a hedonic adjustment.
It gets better. The BLS shows the cost of housing up about 56% over the last 20 years. Here are a couple indisputable facts from the same government peddling this inflation drivel. The average new home cost $175,000 in 1997. The average new home in 2017 cost $380,000. For the math challenged, that is a 117% increase. The average monthly rent in 1997 was $576. In 2017 it was $1,021. That is a 77% increase. Housing is the biggest weighting in the CPI calculation. Since using actual cost increases would show at least a 90% increase in housing, the BLS drones created a fake calculation called owners equivalent rent which no one can question.
That’s how you fake housing inflation.
And now for the funniest bullshit of them all.
According to these fake news aficionados, the cost of a new car has not gone up by one dime in the last 20 years. It seems there is some non-government data that says otherwise. The average price of a new car in 1997 was $19,214. The average price of a new car in 2017 was $33,560. Does that strike you as a 0% increase? The actual increase for the average schmuck living in the real world has been 75%. But those good old hedonic adjustments get you back to 0%. Those heated seats for your ass and those deluxe cupholders made your drive to work $14,000 cheaper, according to the BLS.
The absurdity of this crap is almost beyond comprehension. The CPI is nothing but fake data disguised to make you think you haven’t been reamed up the ass for the last 20 years by the actual Federal Reserve created inflation exceeding 5% per year.
The Deep State counts on a dumbed down, math illiterate populace to believe this crap because it comes from the government.
Anyone who believes this bullshit is willfully ignorant or just a plain dumbass.