Growth of the U.S. economy is lower than reported.
- from the May Edition of Harper's
This is the result of constant " tweaking" of the measurement standards by each successive government.
The most egregious example is reporting " Core Inflation " and headline inflation - implying that inflation is not a problem because " core" inflation is not rising dramatically.
Core inflation reports the rise in prices without including food and energy. Barry Ridholtz says that core inflation is better called " inflation ex inflation " or inflation after the inflation has been excluded.
Anyone that eats or drives knows inflation is rising.
- China and India will export inflation with their goods and services.
- Vietnam reports an inflation rate of 25%
- Dow Chemical has raised its prices 25 % to cover higher oil prices.
Inflation reinforces the weakness of the U.S. dollar.
European fears of inflation have kept their interest rates high - again in contrast to the U.S.
On Thursday July 3rd the EU will announce its interest rate policy - and the U.S. hopes for a " cut" to help offset the weakness of the U.S. dollar - and thus hopefully - help lower oil prices.
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