So what is the real truth? Does the White House lie bigger than the FED, and which are the good guys, or are neither? Then there is the question of who really pays for tariffs being strong armed onto China manufacturers. Stockman tells us:
“In the three months after the United States imposed tariffs on washing machines to protect Whirlpool and other U.S. manufacturers, a decision at cross-currents and exacerbated by tariffs on imported steel and aluminum, prices for washing machines increased more rapidly than any three-month period in the 40-years data has been collected and those prices increased more than twice as fast as any of 300 other categories in the last two of those three months.”
Here’s the picture correcting a giant lie of understated inflation, in this case compounded by the new tariff on Chinese wash machines. (Chart compliments of David Stockman)
Editor CEC adds: Trust your own instincts about inflation. Bankers and politicians have a vested interest in not understating it! Its too tempting for them play down the problem they themselves have caused by spending borrowed money.