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Only politicians, economists paid by the state (i.e. almost everyone) or journalists writing on behalf of the state and in their ideology believe the inflation data as it is published. Of course, the CPI number understates the true price increase across the board.
As the chart shows, it is primarily the goods and services of daily use, which we cannot escape, especially those in the lower income brackets, that are killing their purchasing power. The state is the big profiteer, as it benefits above all from indirect taxation by making a big grab at VAT through inflated nominal gross domestic product.
It's like Milton Friedman said: if you want to know how high the actual taxation is, you also have to factor in the national debt. Because we pay for this through tax increases or inflation, through the planned debasement of money. This seignorage transfer from the private sector to the state is the real robbery, as it is neither explained nor even unveiled by the media or 'science'. Without knowing what is happening to them, ever larger sections of the middle class are slipping into dependency on the state juggernaut through the theft of purchasing power.
Thanks for clarifying! I was actually having some confusion to understand inflation. Also, I think people believe these charts and numbers because they are mostly ignorant about how economy works. Those who know, they just don't make everyone about the true picture of economy. You're absolutely doing the educational thing with your articles!
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You always know the data they provide is in their favor. Everything is increasing, and wages are the same. Unless we can throw off all of this debt, we Americans are in big trouble.
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right. but never forget: we have to calculate with this false data when we move in the markets in any way. otherwise, for us bitcoiners, the motto is collect and wait
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Considering the fake data and the real hit to our domestic economy translated into being able to buy less products with the same bills as before, that seems the most logical option to try to save some of our energy and purchasing power. (you buy your SATS, and just hold on and wait patiently, while the world around you burns) 🗺️🔥
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Right, that is the best way to do it. Buy as much as you can and hold. You do at times worry, though.
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I had heard the term IPC before but I had no idea that governments manipulated it or lowered or raised it for their own benefit and it is surprising that the lower the IPC, the higher the quality of life for citizens.
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I think that when the next big crisis hits governments will use the opportunity for a major tax raid*. The bond markets will like this and so the sovereign debt crisis can will be kicked further up the road.
*land tax with an exception for low value properties and pensioners.
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these will be some of the measures alongside massive inflation compared to which inflation with the covid nonsense will look like kindergarten
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47 sats \ 1 reply \ @co574 20 Aug
unpopular opinion:
  • the actual basket of goods and services used to measure inflation is total scam
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Why 'unpopular'...
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In Italy, we’re experiencing a similar situation. The government here also seems to do little to stabilize prices or support businesses and families. The inflation data, as well as statistics on employment and economic performance, often don’t reflect the true state of affairs, creating a misleading sense of well-being. This puts increasing pressure on citizens, especially those with lower incomes, as their purchasing power is eroded without adequate protective measures.
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40 sats \ 1 reply \ @TomK OP 20 Aug
the only thing the state can do to stabilize prices is to reduce useless, debt-financed spending and withdraw from its spiral of interventionism. but Italy is currently receiving massive funds from the EU to create a semblance of stability. It is good that Italy continues to rely on the family as its most important social anchor
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It's true about EU funds, the question then is whether they are well managed and distributed. Fortunately we still value the family, it continues to be a fundamental resource for our economy, because it compensates for the shortcomings in social safety nets and public interventions, especially in these difficult times.
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The cheat can be explained a little something like this, While the masses have savings they will make sure that the masses will spend more until everything is a dessert and then the fun starts all over again.
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