Posted on 04/10/2022 10:26:32 AM PDT by blam
With the official inflation (CPI) rate at +7.9% year-over-year – a 40-year-high – one could be forgiven for believing that the government’s statistics are to be trusted this time (or why would they have ‘allowed’ it to reach such a high level?).
However, with ‘hedonic adjustments’ and such ‘unobservable’ prices as ‘owners equivalent rent’ who can really “know” what the real number is for the average family in America. Worse still, who can trust – given the government’s recent track record which has sent ‘trust’ to multi-decade lows – that a Fed desperate to show its policies are working and a Washington establishment desperate to show some progress ahead of the Midterms will not ‘adjust’ the CPI measure going forward (“see it was transitory after all”) and historically “revise” the worst inflation since Volcker to ensure the public doesn’t lose faith in The Fed’s ability to save the world.
All you need to look at is recent history in other countries, or the CDC on masks, or the censorship of the lab leak theory, to know that the centralized state isn’t going to provide reliable inflation stats.
So, the decentralized network will have to do so. pic.twitter.com/JE1y2vWRdc
— Balaji Srinivasan (@balajis) May 31, 2021
What we need is a censorship-resistant, un-manipulatable inflation feed – an decentralized un-deletable history of real prices indexed and available to all.
As former Coinbase CTO, Balaji Srinivasan, details in a brief Twitter thread:
If inflation censorship occurs the on-chain inflation feed would be the crypto flippening in several respects.
1.decentralized cryptographic truth would be more trusted than centralized emanations of press & state
2.an on-chain app would be one of the world’s most popular apps
3.what BTC people were saying about digital gold would be proven right
4.what ETH people were saying about dapps would be proven right
5.what human rights people were saying about censorship-resistance would be proven right
6.Every piece of the crypto stack could come into play: decentralized file storage, crypto oracles, etc.
Unlike previous efforts, inflation censorship would be much more transparently in service of the dollar regime. Hard to spin. And everyone gets bitten by inflation. An on-chain inflation feed may be the crypto turning point.
We’d all just be trying to get decentralized consensus on a number, but that consensus is *outside* the centralized establishment.
Public blockchains provide that gathering point: the new hub that can’t be taken down.
Decentralized finance (DeFi) firm Truflation is building a new gauge that does just that.
As Coindesk reports, the key difference between the CPI and the Truflation index is that while the government uses survey data to measure inflation, Truflation looks at price data. The CPI is measured in the form of a survey that collects about 94,000 prices per month for commodities and services and 8,000 rental housing units for the housing component.
“It’s the black box. We don’t know how they made the survey, how they executed it and so on … and the surveys are quite dubious to us as opposed to real price data of the sales point that you can get from real merchants or aggregators,” Rust said.
While the Truflation index is based on the same calculation model as the widely used CPI, it is different because it measures and reports inflation changes daily by using current real-market price data from sources like Zillow, Penn State and Nielsen, among others.
About 40% of the data that is being looked at is the same goods basket that the Bureau of Labor Statistics uses. The remaining 60% is being substituted with data from other sources.
So where does that leave us… what is the “real” inflation rate? The Truflation Dashboard – which runs on Chainlink and is therefore accessible and visible for everyone – says 13.2% (with Food costs up 26.5%)!
That’s quite a difference from the government-sanctioned 7.9%…
Srinivasan sums up this ‘shift’ perfectly (and rather ominously for the centralized state): “More broadly, the monopoly of truth is upstream of the monopoly of violence. A state that can establish what is true (“WMDs in Iraq”) is a state that can justify violence. It is in this sense that decentralized cryptographic truth is the ultimate check on every abusive state… “
Totally believe this. From personal experience I know inflation is not at 7% or 8%. It’s definitely at least 13%.
MSM let the rats get away with removing gas and food from the calculation. Pravda.
Allowing governments to issue economic statistics is like allowing the Mafia to do the casino count.
We went out to eat last night and the bill was 30% greater than it would have been pre-Biden.
Data point.
A good friend bought a Genesis GV80 last Summer. $65,000.
I was looking at them a few days ago. $75,000.
15.4%
based on the change in grocery prices over the last two weeks....I think 13.2 is conservative
Official gub’mint inflation rate: henhouse
gub’mint: fox
That is what I have found too.
Roughly 25 percent more.
That is for one restaurant/tavern I frequent in southern NH.
They have not raised their food prices at all.
Prime rib is still $25 on Friday and Saturday.
A 12 oz ribeye is $24.
These include two sides.
It’s higher than that. It’s in the mid 20s
The numbers look right the farmers are having a hell of a time making the cost of the increases everything id up for everyone the talk of a depression is a huge alarm going off.
Democrats in action
too bad that truflation is so hiteckie that one can’t view their “dashboard” on a PC ...
If we finally get you off of your fossil fuels your pain will have been worth it to us.
Dollar Trees have either closed or adjusted their prices. Now they are Dollar ‘n a Quarter Trees. 25%
13.2% if you don’t have to buy anything. CLoser to 100% for daily needs in my neck of the woods.
Never happen many people don’t realize how many things that could no longer be made hydrogen fuels will be the main stay for autos.
There is no utopia
Rents went up 20% in the Tampa Bay area in the last 12 months...
What, like the whole petrochemical industry. We could have mass starvation. It would be worth it to save us from the depredations that are certain to come from globull warming.
Double the 13.2% and you’re closer to the real inflation rate. 13.2% is too low based on the price hikes I’ve seen the past 15 months.
Check out the list of items made require the use of oil bet you couldn’t do without them.
Google
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.