/biz/ - Business & Finance

Post yfw you bought at .05

REMINDER THAT THE CPI DOESN'T EVEN MEET THE GOVERNMENT'S OWN DEFINITION OF INFLATION

https://www.forbes.com/sites/perianneboring/2014/02/03/if-you-want-to-know-the-real-rate-of-inflation-dont-bother-with-the-cpi/#35d5034a200b


>The Bureau of Labor Statistics defines inflation “as a process of continuously rising prices or equivalently, of a continuously falling value of money.”

>the CPI is not a measurement of rising prices, rather it tracks consumer spending patterns that change as prices change. The CPI doesn’t even touch the falling value of money. If it did the CPI would look much different.

and for the final kicker my bros

>M2 measures the supply of US dollars, which includes cash, checking deposits, saving deposits, and money market mutual funds. The more money that’s created and put into circulation, the less valuable it becomes.
>It doesn’t make sense that the BLS’s measurement of inflation was only 1.5% last year, while at the same time, monetary inflation grew 4.9%
>: On 01/07/2013 M2 was $10.452 trillion. On 01/06/2014 M2 grew to $10.962 trillion. That’s a 4.9% increase in the monetary base in just one year. Conversely, a 4.9% decrease in the value of the US dollar.

EVEN BY THE MOST CONSERVATIVE ESTIMATES REAL INFLATION IS STILL 5 (FIVE) PERCENT PER YEAR LMAO