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How The U.S. Government "Covers Up" 72% Inflation Before Your Very Eyes
Dear Bureau of Labor Statistics: please pay careful attention to this case study of how your CPI "inflation" gauge, hedonically, seasonally-adjusted or otherwise, is completely inaccurate, and how what you record as 0% inflation is really 72%.
As Consumerist points out, for the latest example of "stealth inflation" we go to Sodastream, where as part of a redesign of its proprietary line of flavoring syrups which "cost the same" the actual bottle contents are now not only smaller but also diluted.
"How much smaller? The old version made 50 servings of flavored drink, and the new versions make only 29. Why 29? Why not 30? Such are the mysteries of the Grocery Shrink Ray."
Consumerist shows that "the new bottles are somehow taller even though they’re smaller. On the positive side, they no longer look like petite laundry detergent bottles."
Furthermore, while the number of servings is down to 2/3 of the original amount, the bottle size isn’t that much smaller. That’s because the measuring cap is now bigger, and each serving uses more syrup. "The worst part is that they just diluted it with more water so the ‘new improved’ ones LOOK like they are the same size," reader Erik complained to us. “They are 440ml instead of the old 500. EVIL! Free the bubbles! Stop this shrink ray occupation of my favorite soda!”
The old versions are still available on SodaStream’s site for now, as "Classics," but readers report that they only find the shrunken version in brick-and-mortar store.
Consumerist' conclusion: "maybe SodaStream made this change because they know that the product still looks reasonably priced next to its new competitor, the Keurig Kold. Maybe."
Actually, why SodeStream did this is irrelevant: we are confident the decision to shrink and dilute the product was the result of simple concerns about maximizing profit margins.
What is far more troubling is that for the Bureau of Labor Statistics, both the "old" and the "new" product costs the same, or $5.99, hence there is no inflation... until one does the actual math.
Presenting the "old", Dr. Pete soda mix, the one which is no longer available in bricks-and-mortar outlets, which costs $5.99 and which makes 50 servings per bottle.
And here is the new one: available everywhere for "the same price as the old one" but with one small difference - it makes only 29 servings per bottle.
The math:
- Cost per serving "old" style: $0.1198
- Cost per serving "new" style: $0.2066
Nominal inflation: 72.4%
Worse, there is not even an attempt to make the "new" product "hedonically" better, or for that matter different in any way - it is just smaller, and massively diluted.
And it just so happens that nobody in the Bureau of Labor Statistics noticed this oldest trick in the book, and why month after month the BLS reports core CPI that is negligible, and why said "lack of inflation" allows the Fed to continue its zero-interest rate policy for 7 consecutive years in a row.
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http://www.ebay.com/gds/How-to-Clean-Oxygen-Sensors-/10000000178258924/g...
Politicans were always corrupt but are ever more corrupt now.
They always thing they are smarter and know better.
Ask the politicians if they read and understand the bills they vote on. If their honest (a stretch) they'll tell you they didn't read many of the bills.
The population is general has become more ignorant of what's going on even though they have more information. Much of information are lies. Distortion or changing of facts to suit lobbyist.
Honest politicians STAY bought.
NEA is Soooooo proud of you.
- Ned
Cant take the BS out of BLS
I'm for that... Bureau of BS.
Certainly NOT new, it's Stealth Inflation been going on for donkeys years.
Really, why do think Industries bribed so many Politicians to prevent labeling Laws and Standardised Unit Pricing on shelves.
Look what they have done with light bulbs, this new shit the fucks force us to buy blow ALL the fucking time, I also notice government lights never seem to blow, watch street and traffic lights, that shit burns forever. Change a law, start a business as the old adage goes. Fucken prick politicians working with business, one big fucken boys club, and as Carlin(RIP) said 'and you're not in it'.
They have started it with vacuums as well now, and lets not forget refrigerators.
The fucken wankers need to be hanged.
The next step in fighting inflation statistics is to bring out the concentrated formula and shrink the bottle all for the "Same Great Price," - or even a little better price to get you to go for it - paving the way for quietly removing the word 'concentrated' from the bottle and diluting the contents while the price stays the same. Then the price goes up and they bring back the larger "economy" sized bottles at a much higher price than they were last time on the shelves. Or they keep the smaller bottle concentrated and bring back "economy" sized bottles they can quietly dilute.
Just like toilet paper of some big name brands, the size of the roll has shrunk about 1/4 of an inch, I noticed this when I put a roll side by side with another name brand. Well buyer beware. We're always getting the screws.
Downsizing is happening globally, now if they'd just downsize the BS, the corruption, the size of the government, the pollution, the payouts and big mouth, full o' crap politicians the world would be a better place.
but, laptopd got cheaper! I buy one every seven years. I ate the last one.
We should all eat laptops instead of food. Cheaper and slimming to boot.
LIARS! CHARLATANS! CRIMINALS! SCUM!
We must send a U.S. Army division and surround the Federal Reserve ...
(and then just pummel the Eccles Building to dust)
(and sort out the criminals afterwards)
(and feed them to crocodiles)
(and televise the feeding to crocodiles)
(to recoup the cost of buying the crocodiles)
I love this idea.
Its really obvious at the grocery store, you used to be able to buy big packages of food that would last, now the packages are all individually wrapped inside a big empty box. Its all about package size as they say.
Have you noticed the "sushi bar" that is in almost every produce section now?
(hint: it used to be produce they put there)
(now, not so much)
Yet, in America, we still have access to much - just not as much as we used to, and certainly not the same quality.
(green apples last summer?)
(they seemed rotten by the time I got them home)
Sushi might be popular, but based on the customers they must be sneeking in when I am not looking. They put one in the commisary several years ago, so far I saw one customer buying something. The sushi guy said somthing like "see you again soon" the NCO said "not at these prices" ha ha. The deli counter only had one price of ham on display, $9.29 a pound in several varities. I asked the woman, "Do you have any ham that isn't for LTC's and above?". She said yes, we have some for $6.29 but it isn't on display". WTF????
The value of gold to the dollar is where it is most obvious, the value of the dollar has been in a long term downward trend compared to gold, thus $1,100oz gold which proves inflation. They have almost managed to make the dollar completely worthless.
You want to see inflation? Go to any major wholesaler and get the price increases on pharmaceuticals in the last 8 years. And I'm not talking about the slow selling ones in the news lately. Hint: They don't have them, their emails got lost, the dog ate them, it was a fluid situation, etc. The numbers would be far far greater than 72%. Take it from someone who knows.
Stop buying while they can recheck there profit.
"Feeding banksters to crocodiles" should be designed to be revenue-neutral, is my point. If anything, we should generate a profit.
All part of the American dream people, move your exceptional asses along.
UK has had the same problem for years. I get bored pointing it out every few weeks. 2 weeks ago Holland and Barrett raised the price of a 1KG almond butter from 13.99 (uk pound) to, 19.95 (uk pound).
42% incease. When challenged you get a dumbfounded look. The government here spurts crap out inflation being 0.1% Where as I only ever see greater than 30% price increases for my food groups.
As someone said, normalcy bias couped with stockhom syndrome. These corporate run entities are raping and pillaging us dry, with the blessing of our governments.
The design of the dollar, and every other debt based fiat currency requires continuous monetary inflation. Govt creates a debt, which the central bank puts on their asset sheet. Then the CB "creates" an amount of currency equal to the face value of that debt on their liability sheet.
Voila! Money has been made!
Until the first interest payment. That payment ends up at the CB, where it cancels out part of that currency liability. Cash has just left existence.
So, the govt must take out a new debt to make the debt payable. The new debt creates more cash... And around we go!
But...with each round on this monetary merry-go-round it redistributed wealth away from producers to be received by govts, financiers, central banks, and their cronies. They will spend that money before it bids up prices.
And that means an ever-greater portion of the debt represents accumulated interest that must be serviced. And the portion that is real production is ever shrinking.
Understand now why prices always go up?
Understand now why the products shrink?
It is baked into the monetary cake!
The monetary cake tastes like spackle in my mouth.
Yea but who else is doing it besides this company? Surely cereal makers like Kellogg's but who else? Enough that it is really significant?
You must not drink coffee or bake from scratch with real cocoa, or eat pork and beans...or...
They're all doing it. Geez. Do you shop for yourself at all?
Burritoes, tea, ice cream bars, chocolate bars, frozen veggies, fabric yard goods, ground turkey, frozen dinners, canned soup, paper towels, sweatshirts, shoes (try to find any made of leather recently?), flower & vegetable seeds (half the number of seeds, three times the price), flour (bags reduced from 5 lbs to 4 lbs, twice the price), sugar, eggs (Grade A Large today would have been Medium in 1980), lumber (2X4 is now down to 1-1/2 X 3-3/8).
We should also mention that there is NO WAY to tell if the meters at the gas station actually dispense a gallon of gas when they say they do. They're inspected by state officials. But if the Bureau of Standards were to reduce the volume designated by "gallon" in a bureaucratic footnote bought and paid for by industry, that change would occur across the country, and all of our "gallons" would miraculously become smaller with no one the wiser.
It's the Obamanation, our president's brain is also smaller and massively diluted, like his American citizenship.
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Sooner or later, theze chickens are going to come home to roost.
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V-V
I buy a lot of popsicles, been buying the 24 pack for quite some time. Maybe 4 or so years ago, I started noticing that I was going through the boxes a lot faster. It toook me a while to realize that they were now only 20 in a box. What added to my missing this was that they used the exact same box but packed the popsicles in the box differently.
A decade ago there were 10 burritoes in a bulk bag; now there are 8. 9 oz in a Budget Gourmet meal, 7 oz now. 16 oz of frozen veggies in a standard Kroger bag, 12 oz now. Enough tea for 2 cups in a standard Lipton bag; if you use only one bag per cup now, it's a mighty weak cup of tea. And all of this is the last decade. I've been watching since 1976, and by the standards of the 70's -- which were NOT the highest by any means -- everything today is crap.
The ONLY things that go down in price seen over decades are tekky toys from China and hot air from politicians.
Yes this downsizing of products has been going on for years.
But what no one really comments on regarding inflation is that the "Official" calcuation does not include house prices!
Yet housing is a major cost for most people - mortgage and rent.
So what gave them the right to remove it from the CPI.
If it were included our inflation (and wage increases) would be about 10% a year.
Doesn't include gas prices either, on the spurious claim that they're "too volatile". They are also a fundamental part of the economy, both on the micro/household scale and the macro/national scale. Or FOOD. So, they remove necessities (food, shelter, transport) from the measurement, "adjust" the rest for substitution of fake and inferior goods for higher quality originals, and ignore changes in quantity per unit price . . . then claim that All Is Good. And all IS good, for the owners of massive shares of corporate stock who reap in the profits.
Capitalism at its worst
Democracy is by people, of people, For people
Demoncracy is by, of & for the benefit of cabal capitalists & banksters
Enjoy Austerity in Disguise
Hey, guess what? Now I work as a bean counter for USA.Gov. I've been here long enough they can't fire me.
The GodHead records Everything. Everything we do for and against each other will come back on us.
Enjoy