THE CORE RATE

This article covers the difference between the "official" CPI put out by the government/media and the actual rate of inflation as it used to be calculated. As has been noted by Ron Paul, Presidential candidate, the actual rate of inflation is running around 10%.The DisconnectA caller into a Washington D.C. talk show asked a very pertinent question regarding the business of living. “Have they changed the way they measure the rate of inflation? The CPI report in May was zero percent, excluding food and energy. If you take those things out, that is what is primarily driving up everything. What would be the real inflation rate, if you add back everything they take out?" The host of the show turned to his guest, a financial reporter from The New York Times. The host of the show and the Times reporter were caught flatfooted. The Times reporter couldn’t answer the question. The host then went on to say, "The inflation rate as it is reported has been quite low over the last few years. Next caller." http://www.financialsense.com/stormwatch/2005/0624.html

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