People are still quoting CPI like it’s gospel… why?
CPI is a lagging, curated basket that gets adjusted every time reality gets uncomfortable. Substitutions, hedonic adjustments, weighting changes, all designed to smooth the numbers.
Meanwhile:
- M2 money supply exploded post-2020
- Asset prices went vertical
- Cost of living didn’t “2-3%” it jumped
And we’re supposed to believe inflation is “under control”?
You don’t measure inflation with a shopping list.
You measure it with money supply expansion.
More dollars chasing the same goods = prices go up. It’s not complicated. CPI exists to make monetary policy look responsible. That’s it.
If you actually want a hedge against real inflation, you don’t hold dollars.
You hold scarce assets.
Bitcoin didn’t appear out of nowhere, it’s a response to this exact system.
CPI isn’t inflation. It’s a PR tool.
byu/Remarkable_Tutor_994 inBitcoin
Posted by Remarkable_Tutor_994
8 Comments
I’ve been saying this since forever… no one understands or cares 🙁
You are looking at two very different things. CPI is an index that reflects a growth rate. M2 is a defined, factual number.
The funny thing is people expect inflation to reverse. That is exceptionally rare. The growth “rate” can slow down, but year over year the dollar value will erode about 2% per year.
M2 will usually reflect inflation 6 months or so out. It takes a while for massive injections of money to show up in the inflation numbers.
Amen. Like most prices almost doubled in the last few years. And CPI is like 3-5%, like wtf?
I was with you until the last sentence when I realized this is an AI post.
Its a tool that companies use to justify only 2-3% wage increases.
AI post, but at least you edited it a fair bit.
If someone is defending CPI, they most-likely have an agenda they are peddling
There isn’t a logical math reason to defend it. They just don’t want their preferred political candidate to look bad.
CPI is bullshit, real inflation is more like 7-8% a year.