The Government is Using Inflation to Steal Our MoneyAugust 29, 2016The politicians think they have pulled a real sly trick on the American public with buying into and propagating the Boskin Commission’s Core Index method of reporting inflation. By using this method they have avoided raising COLA (Cost of Living Adjustment) payments to seniors on Social Security payments, veterans pensions, and federal employee pensions. No one has been able to break this stance and many in the media simply accept it and meekly mumble that inflation is under control - because the government says so. This is blindness, self-inflicted.
To see the practical workings of the fallacy - other than by simply buying groceries and fuel - please consider the following scenario. Since the essential component of the Core Index method of reporting inflation excludes food and fuel from the calculation, let's look at how that works in the real world. Suppose you are a person working or running a business and you decide to eat or fill up your vehicle with gas. The contention of the Boskin Commission is that food and fuel are “volatile “ and therefore should be excluded when reporting inflation. But what if food and fuel prices are not fluctuating up and down but are rapidly rising as we see today? As you order your meal or fill up your tank more money is required from your pocket. How much did it cost you rto fill up your gas tank eight years ago compared to today?
You would think if there was any concern with this core index reporting by the government they would insist on comparing core index figures with figures reporting inflation rates without core index figures. This would show the discrepancies and demonstrate whether the core index has validity. The evasion the government is utilizing to dismiss the fallacy of the core index shows the government is not interested in honest reporting, but rather is hiding the inflation they are generating. Prices in food and fuel are not rising simply because of supply and demand. The swelling rage toward government spending is commendable and necessary if we are to avoid total collapse. But if we are not going to insist on the honest reporting of inflation we cannot stop the printing of money, which is going unchallenged.
The debt limit extension is a bellwether event which will show whether we have a new breed in Congress or more of the same political flunkies who think that ever greater debt is necessary. Necessary for what? To continue deficit spending of course. If the debt limit is extended you can bet the nation will reach the same crisis again in a few months, and the debt ceiling will have to be revisited. If and when it is rejected we will see the beginning of cost reduction by the government. For those seeking more power and more political pandering this will be the battle of last resort And you can be sure those who want to redistribute wealth and enhance their political power will fight tooth and nail to continue to raise the debt limit and continue with their deficit spending. The promise of America is on the line. It is a sad testimonial for those who have been fortunate enough to experience her special status that she is being allowed to sink into third world status because of a citizenry that is willing to accept a corrupt government reporting system on face value. The problem with democracy is the danger of a complacent citizenry willing to allow politicians free rein while shackling themselves under the political yoke. Our Founding Fathers talked of necessary uprisings. They too must have seen the obtuse evasions of politicians willing to destroy by dishonesty and fraud. It is said that experience keeps a dear school but fools will learn by no other. Analogously freedom cannot survive in a land of complacency. If the people who are paying the bills are content to have the spenders lie to them, take from them and lead them into a financial abyss, do these citizens deserve anything but what they have condoned? The question answers itself.
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Dale Netherton was born in Cedar Rapids Iowa. After serving in the Marine Corps and obtaining his bachelors degree he worked in the field of forestry. He obtained an M.B. A. from Nova University and wrote an outlooks column for the Cedar Rapids Gazette for 7 years. He moved to Southeast Iowa after retirement and built a campground on the Des Moines River catering to hunters, fishermen and families. He has written two novellas, countless editorials, over 240 essays, produced two poetry videos, has been published in Lyrical Iowa several times, had letters published in the New York Times, Time Magazine, Newsweek Magazine and contributed online to canoestories .com. He is now more fully retired in his house on the river with his wife Donna putting together writings, cutting firewood, hunting mushrooms, fishing , camping and golfing.
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