Monday, October 15, 2007


Oil is now about $86/barrel, about 45% higher than it was a year ago. Are we really supposed to believe that the Consumer Price Index is only 2% above a year ago? I just don't believe it.

Oil and heating and transportation costs permeate our economy. I just don't believe that a 45% yearly increase in such a basic commodity leads to only 2% inflation. I have some idea how they calculate the CPI, and although I don't know every detail I don't for a minute think that the cost of living is increasing only at 2% a year and yes, I am even prepared to believe there is collusion among economic officials to keep the stated CPI down. I have no evidence for this, and I'm sure one couldn't get it without a 6-month investigative study, and I hope someone is doing this, but something here seriously does not make sense....

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