TFTC: A Bitcoin Podcast
#551: Why Inflation Is Higher Than You Think with Ed Butowsky
Oct 30, 2024
Ed Chapwood, an American financial advisor and author, shares insights on inflation and the inadequacies of the Consumer Price Index. He introduces his own Chapwood Index, which he argues paints a clearer picture of rising costs. The discussion also highlights the impact of Federal Reserve policies and national debt, as well as the potential of Bitcoin as a safeguard against currency devaluation. Chapwood stresses the importance of recognizing hidden inflation and advocates for state autonomy in financial matters, offering a fresh perspective on economic realities.
45:05
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Quick takeaways
- The manipulation of the Consumer Price Index (CPI) has led to underreported inflation rates, significantly impacting individuals on fixed incomes.
- The Chapwood Index serves as a more accurate measure of real cost-of-living increases across major U.S. cities, reflecting true economic struggles.
Deep dives
Manipulation of CPI and Its Implications
The government has altered the way it calculates the Consumer Price Index (CPI) to avoid providing significant increases in programs like Social Security. Initially, the CPI was reported at 13% in the early 1980s, but it was manipulated to show a much lower figure, purportedly down to 3%, to lessen the economic burden on government payouts. This distortion means that the real cost of living increase for many Americans is substantially higher than the government reports, leading to a continuous struggle for individuals relying on fixed incomes. The actual inflation rate, if calculated using the old methodology, would reflect a growth of about 8-9%, indicating a significant disconnect between lifestyle costs and reported data.
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