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Submitted by Deepcaster:
Posted December 30, 2012, By The Doc
The proposed forced Investment of Present and Prospective Retirees 401(K) Assets in U.S. Treasury Paper about which we earlier wrote, is now followed by yet another prospective attack on Retirees’ Security, and indeed on the Wealth Security of those who hold $US Denominated Assets.
The Prospective Rigging of the CPI Calculation Protocol would , yet again, make the “Official” CPI even further removed from The Inflation Reality. The Reality is that the current U.S. Inflation Rate, 9.82%, is already Threshold Hyperinflationary.
Absent manipulation, Gold and Silver would be the monetary “Canaries” of the Financial World, whose prices would long ago have warned of Excessive Monetary and Credit Creation. Well, in the past decade their price appreciation certainly has “warned” of that, but not in the past few months. Gold and Silver prices are subject of ongoing Price Suppression by a Fed-led Cartel. But Gold and Silver Price Suppression, cannot last forever.
“As the miscreants in Washington negotiate solutions to the [various –Ed.] crises, trial balloons have been floated that agreement has been reached to use a new CPI measure—the C-CPI-U, which tends to understate inflation even more than the CPI-U—as way of deceptively reducing cost-of-living adjustments to Social Security, etc. Not too surprisingly, public reaction appears to be turning increasingly negative, as the concept gets broader exposure in the popular press.
Public Furor Mounts Over Proposed Use of the C-CPI-U to Short-Change Social Security Recipients on Their Cost of Living Adjustments. The chain-weighted CPI-U (C-CPI-U) is the fully substitution-based inflation series that is under serious consideration by those in Congress and the White House as a replacement for the CPI, with the goal of cutting Social Security cost-of-living adjustments (COLA) by stealth. A fully-substitution-based inflation index used in COLA calculations would reflect lower inflation than would the CPI-U or CPI-W (used for Social Security), resulting in fraudulently- and artificially-reduced cost-of-living adjustments to social programs, retirement funds, etc.
If the people controlling the U.S. government were honest, they simply would tell the COLA recipients that payments were being cut as part of the effort to balance the budget. Yet, no one in Washington has the political courage to suggest such a thing, openly, hence the regular deception that so often surfaces in the headline budget bargaining.
Reducing COLA by artificially reducing CPI reporting is not new. Had the politicians not pursued similar policies successfully in the 1980s and 1990s, Social Security payments would be more than double current levels… annual SGS – CPI Inflation… (using) the 1980-based measure came in at 9.4% in November …” (emphasis added)
November CPI, Industrial Production”, Shadowstats.com, 12/14/12