Quote:
Originally Posted by Barry-xlovecam
The stated US government figures are manipulated to an average that looks better than it is IMHO. The real inflation rate for everyday consumers is probably in the 4% to 6% annual rate.
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The government may well have a reason for manipulating inflation figures. Inflation reduces the value of debt at as well as, if translated to profits/wages increases tax revenues for the government. You can tax inflation but you cannot tax deflation and hence that's just one reason why inflation is more desirable.
However if you really do have inflation in the US the government has an incentive to show lower inflation because higher inflation would mean interest rates should go up. Increase interest rates soon enough and fast enough to end easy money policy and it will sink the stock market, economy all over again.... although there's talk about raising rates next year, I get a sense that its just talk (to indicate a normalizing economy).
Well, most governments manipulate the figures but 4 -6% is a very substantial amount of inflation and everyone else here seems to believe the government figures, so where do you get that from?