Peter Schiff shows why official CPI numbers on inflation are wrong
In the video below (a companion to the editorial in a previous post), Peter Schiff demonstrates why the way the CPI (the consumer price index) is calculated today creates a false picture on inflation. He shows how the CPI increase in the 1970s (a decade of high inflation) closely mirrored the price increase for a sample set of 20 goods and services. Then he shows how the same sample set in 2002 to 2012 rase 60% higher than the CPI. In other words, the CPI is understating real inflation.
It gets worse when he looks at the actual increase in newspaper and magazine prices and compares that to the amount the government claims they have increased. In the process of that experiment, he reveals what appears to be outright dishonesty. The same is the case with the fraudulent and laughable numbers the government reports on health insurance increases.
Schiff’s record of predicting economic problems has been pretty solid, so this is definitely worth attention: