Thanks for the explanation, bubba99. I forgot that the government just prints money.
What I don’t understand is why the Fed doesn’t stop with all that money printing, since it is raising inflation at 10% annually, according to that same site. On one hand they raised interest rates to control inflation, but on the other hand they are printing money, which is having the opposite effect. It is like filling a bathtub by running the water and keeping the plug out; it cannot fill up. Likewise, how can inflation be tamed if they keep printing money?
Does the Federal Reserve think we are too stupid to figure out their statistics are tortured to suit the government purpose of keeping cost-of-living adjustments low? I guess they do. With all their hedonic adjustments, they have fooled the masses into thinking inflation is only 2 or 2.5%. For the average person, who’d rather watch Desperate Housewives than read an economics text, the deception is working. But why are the professional investors and economists fooled by the government statistics?
Do you think John Williams is accurate on these statistics than the BLS?
