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Originally Posted by mike5.56
The thing that you have to realize are the changes that took place in the '90's when Boskin (Treasury) and Greenspan (Fed) changed the methodology by which CPI is calculated. Prior to 1994 it was a fixed basket of consumer goods the prices of which were added together and then averaged ARITHMETICALLY. They were then compared m/m and y/y to get the CPI increase or decrease. After 1994, the methodology was changed to allow substitution and hedonic weighting, and then GEOMETRICALLY averaging the resultant basket. This results in a much smaller number for the CPI. That smaller number is then subtracted from the raw GDP and makes GDP look larger than it really is. Bottom line, the books are being cooked. Don't even get me started on the unemployment Birth/Death modeling that understates actual unemployment. If you're at all interested in accurate figures on the economy, calculated before the Clinton Treasury and the Greenspan Fed started cooking them, go to Shadow Government Statistics » Home 2. |
Ditto.... I have come across this too and it is very convincing. I can't say too much more without going into forbidden territory, but I would encourage anyone interested to read up on this topic and mention it to all their friends.