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The Pomp Podcast

#1306 Stefan Rust | Inflation Is Wrong — Here is Proof

Feb 6, 2024
36:53
Snipd AI
Stefan Rust, Founder of Truflation, discusses the problems with government's CPI measurement, personalized inflation, global opportunities, building a startup team, real-time data analysis, and the risks of building an alternative measurement system.
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Quick takeaways

  • The flaws in the current CPI measurement by the US government lead to mistrust in reported inflation numbers and highlight the conflict of interest in its calculation and methodology.
  • Inflation acts as a hidden tax, eroding the value of savings and impacting purchasing power, making accurate inflation measurements crucial for government investments in inflationary linked bonds.

Deep dives

Challenges with Current Inflation Measurement

The podcast episode discusses the flaws in the current CPI measurement used by the US government's Bureau of Labor Statistics. It highlights the conflict of interest involved in the calculation and methodology, as the same entity responsible for managing the economy also determines the inflation scorecard. This lack of independence and transparency leads to mistrust in the reported inflation numbers.

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