The Inflation Lie: Part Two
This morning while driving to work, NPR was reporting on the Fed's ending a long-standing policy of not raising, and indeed lowering, the interest rate. Apparently, the Fed chief said this policy was coming to an end. He also said that this was categorically NOT because inflation is rising. Critics argue that despite what he says, this is his real motivation. Bernanke countered by reasserting his position and basing it on the "fact" that the measurement of inflation does not take into account the price of gas or food. Instead, he argued, the measurement is based on the price of housing. . . . . . . . . Um, WHAT?!!! So why then, when housing prices were stratospherically through the roof and people couldn't afford to even rent an apartment, let alone buy a house, didn't the Fed declare inflation to be going up during the YEARS of the housing boom?????!!!! I've written about this before. Years ago. Look it up. I complained that there was no one willing