If actual inflation were used, than true economic growth would be in the dumpster.
Judging by the CPI and the broader GDP deflator, actual inflation has already reached its highest level since 1991.
This is why I feel an interest rate rise will come suddenly and not be dependent on actual inflation.
If actual inflation were used, GDP growth would have been much lower all these years, perhaps cutting the official number by 40%-50%.
Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%.
By the 1990s, it became apparent that the CPI was overstating actual inflation by 1% per year, to the gross benefit of recipients of government transfer payments.
The ideal would be to find an annuity that varies with the actual inflation rate, because the basket of goods that a retiree will consume is going to be different than the basket of goods a young person will consume .
FORBES: Managing Your "Tail-End" Risk - Part 2: Deferred and Inflation- Protected Annuities
The first article shows that the actual rate of inflation less falling or stable housing costs is 4.68% in a recession, when US Treasuries are giving us 2% and bank accounts nil.
These monthly withdrawals are adjusted at the start of every year based upon the actual rate of annual inflation for the preceding 12 months.
As there is almost no evidence of consumer-price inflation, either actual or potential, Mr Greenspan can present this week's rate rise as an act of great prudence.
What if we had been using actual home prices as the measure of inflation?
FORBES: Why QE2 Inflation Is Like A Tax On Disposable Income
Inflation reflects itself first in a lowering of the actual rate of interest beneath the natural rate.
FORBES: Why Interest Rates Tell Lies About Inflation, Growth And Just About Everything Else
When actual Russians are asked what they are most worried about, they tend to respond with basic economic concerns like inflation, poverty, and unemployment.
FORBES: Russians Are Still Overwhelmingly Concerned With Basic Economic Issues
While inflation may fundamentally result from too great a creation of money, the proximate or immediate cause of its actual development is much more a function of expectations of what will happen next.
One reason for that is that spelling out the actual policy - a rise in benefits for people of working age by 1% which, since it is below inflation, represents a cut in real terms over the next three years.
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