The CPI is a deliberately bogus number so using it as a benchmark for how high interest rates must go to get inflation under control is meaningless. The rate of inflation using the 1980 CPI basket of goods puts the rate of increase in the cost of living at double the current CPI, and other means of calculating the real cost of living increase coincides. It's a long way to Tipperary.
My monthly SSI (Supplemental Security Income, aka “Social Security”) doesn’t come close to replacing the inflationary loss to my savings. What a deal. Add in Medicare benefits and they’re only stealing half!
The CPI is a deliberately bogus number so using it as a benchmark for how high interest rates must go to get inflation under control is meaningless. The rate of inflation using the 1980 CPI basket of goods puts the rate of increase in the cost of living at double the current CPI, and other means of calculating the real cost of living increase coincides. It's a long way to Tipperary.
Thanks so much, Joel, for your insight on hedge fund manager, Jerome Powell's hiking the
% rate. And the glaring difference between CPI & the new Fed Fund rate. You also mentioned Tom
Dyson's comments in his Wednesday letter. How else would I know Tom is still publishing?
You mentioned him last week also, thank you very much. I'm a subscriber who does not get
Tom's posts.
I appreciate your commentary. Gracias!
My monthly SSI (Supplemental Security Income, aka “Social Security”) doesn’t come close to replacing the inflationary loss to my savings. What a deal. Add in Medicare benefits and they’re only stealing half!