The Govt. stripped out food and energy from the CPI way back in 1970. It's been that way for the past 40 years.
By the way, they reason they did that was all political. Anyone surprised? Arthur Burns, then Chairman of the Federal Reserve, wanted to help Nixon get re-elected. So, he convinced the Federal Govt. bureaucrats to remove food and energy from the CPI. This made inflation look lower than it really was so he could continue his easy money policies in order to keep the economy humming along. It worked. The economy looked good and Nixon got re-elected.
They never put back food and energy into the CPI. They also added "value adjustments" to the CPI since then, which makes inflation look even lower.
It's all a scam, plus it also gives the Federal Govt. cover to screw seniors on Social Security out of COLA's. Well, I guess that's one way of cutting Social Security benefits!
I'll bet if they went back to the original way of calculating the CPI our inflation rate would be at least 4 1/2% to 5%, not the 1 1/2% they say now.
<<The Govt. stripped out food and energy from the CPI way back in 1970. It's been that way for the past 40 years. >>
Richard Russell is usually right about what he writes, if he is confused about this I would be shocked.
Are you sure you do not mean in the 1970's the Fed created the phony "core" inflation numbers, which stripped out the food, housing and energy metrics from the government "inflation" numbers? The CPI is different from the "core" inflation numbers.
Stupid post. Who cares about the cpi? We all know the core cpi is a joke. Is that all you've got?
since i took my hiatus you people have posted some hilarious stuff....synthetic junk bnds? Give me a break.
by the way,your lovely fund dropped today just like all the other junk funds. Seems as though when the market rises 200 points vwehx takes a powder. But when it drops the same amount vwehx goes down as well. So much for the downside protection,eh?