How the government is fudging inflation numbers

Wall Street Unplugged - What's Really Moving These Markets

Frank Curzio

Commodities, Investments, Economics, Trading, News, Stocks, Oil, Uranium, Business News, Crypto, Investing, Crisis, Business, Gold, Industry, Debt, Macroeconomics, Talk, Research, Personal, Geopolitics, Curzio, Finance, Tokens

4.6 • 1.1K Ratings

🗓️ 13 September 2022

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Markets are down sharply as today’s Consumer Price Index (CPI) data came in hotter than expected—leaving investors worried the Fed will continue its aggressive interest rate hikes. Prepare for a rant on the government’s “creative” inflation calculations… and why the Fed should ignore the CPI figure altogether—but won’t. I explain how world governments are contributing to 40-year-high inflation… what the Fed should do to finally tame it… and why markets could drop 20% from here if the Fed doesn’t get its act together. On the plus side, I expect the Fed’s actions to lead to some great deals on Black Friday. In this episode [Aim for 5 bullets max]: Why inflation data came in hotter than expected [0:30] How the government fudges inflation data [3:00] Experts continue to be dead-wrong on inflation [10:58] My advice to the Fed [16:05 Why the markets could fall 20% from here [29:25] Enjoyed this episode? Get Wall Street Unplugged delivered FREE to your inbox every Wednesday: https://www.curzioresearch.com/wall-street-unplugged/ Wall Street Unplugged podcast is available at: --: https://itunes.apple.com/us/podcast/wall-street-unplugged-frank/ -- : https://www.stitcher.com/podcast/curzio-research/wall-street-unplugged-2 -- : https://www.curzioresearch.com/category/podcast/wall-street-unplugged/ : https://twitter.com/frankcurzio :. https://www.facebook.com/CurzioResearch/ : https://www.linkedin.com/in/frank-curzio-690561a7/ :

Transcript

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0:00.0	Wall Street Unplug looks beyond the regular headlines,
0:05.0	heard on mainstream financial media to bring you unscripted interviews and breaking commentary
0:10.0	direct from Wall Street, right to you on mainstream.
0:16.0	Let's go out there, it's Tuesday, September 13th.
0:20.0	Now, Frank Urgeo is the Wall Street Unplug Pockets, where I break the headlines, and...
0:26.0	Tell you what's really moving these markets.
0:31.0	That last part means a lot today, doesn't it?
0:34.0	What's really moving the markets?
0:36.0	You're going to have lots of listeners, just for today's podcast, with the markdown sharply.
0:42.0	You're looking at the down-down, 2.5%, and Nasdaq down over 4%,
0:45.0	most of the large technology companies down over 7% today.
0:48.0	As a CPI, zoom price, and this came in much hotter than expected.
0:55.0	The CPI is the gauge, the gauge, the Fed looks at as its inflationary indicator.
1:03.0	So the past 40 years, inflation surge well into the double digits in the 80s for that,
1:10.0	the Fed revises index, numerous, numerous times, to where the CPI it masks inflation.
1:19.0	It hides it, and this is factual.
1:21.0	You can go look at it, but hear me out, this is very, very important for you to understand.
1:26.0	Nobody really talks about this.
1:29.0	So these revisions took place between 1983, remember we had masks inflation, 70s, and 79 into 80.
1:35.0	Right, well into double digits.
1:37.0	So these revisions took place between 1983 and the mid-1990s, where they introduced the rental equivalence concept, and that was in 1983.
1:46.0	Then they revised this more than 10 times through 2013.
	...

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