Yesterday, March 15th I was watching CNBC (the pertinent discussion comes around 4:50) in the morning and Steve Liesman was talking with Rick Santelli and the discussion was about inflation. The Government (which has a vested interest in a LOW inflation number) says that inflation is low. The satatistic that Steve Liesman was quoting was a number that did not include food (you know, that stuff that EVERYONE needs to have to stay alive) and energy (you know, that stuff that you put in a car to get to work so that you can buy the food). I will agree that that number is low. Rick santelli argued that the number did not reflect reality to the average American.
The problem that I have is Steve Liesman then essentially said that there were no “numbers” that could be used that would be reality. Because they were NOT available!!! HUH????!!! I have a few questions for Mr. Liesman:
1) Are you serious?? Sometimes you look like an IDIOT!! If you answered yes, then I guess the Wright Brothers should have stayed home and watched TV, because no one had flown before. Oh wait, there were not TV’s either!!! I coul go on, but I hope you get the point.
2) Do you seriously think that NO ONE can come up with an accurate measure of INFLATION??
3) Why do you think that the Government (which has a vested interest in a low inflation number) is the only entity that should come up with the number?? They are vested because many government programs are “pegged” to the inflation rate (such as Social Security). If the inflation rate were to
rise be accurately reflected, then the deficit would be MUCH larger.
Mr. Liesman, I would like to make a suggestion to you.
With your resources at CNBC, which is owned by
Government General Electric, you should pick a population number that is represented by an average city in the USA, say 700,000. Small enough to pick up most states, but big enough so that the number of cities is not too large. Then, have someone go to two different stores in each city and buy a basket of goods. Not on sale. No coupons. The basket could contain a gallon of milk, a dozen eggs, a couple apples, bananas, oranges, ears of corn, green beans, a top sirloin steak, a chicken, pork chops, a loaf of bread, a couple 2 litres of soda, a box of diapers, laundry soap, bath soap, etc. Also include 10 gallons of gas at two different gas stations in the city (you would not even need to buy this, I think you can figure out the cost. 10 x the cost per gallon, or just take the cost per gallon and move the decimal to the right one digit.) Pick a basket, I know YOU could even do it. Then, do this EVERY week. Compile a spreadsheet that shows what it cost in each city, every week, and average them. There is YOUR DAMN NUMBER!!! It would even show if inflation is *gasp* different in parts of the country.
See that was not so difficult. And I will BET you that it will show that the “government inflation number” is BOGUS to the average American.