It explains the manipulation that’s been done with the CPI in the past in plain view of the public. I don’t know how close his numbers are to the “real” inflation, his data shows about a 2% discrepancy, which is believable. There are others out there claiming 7% to 9% discrepancy, but I don’t think that’s possible. I’m not a big conspiracy theorist, but there is allot of motive and opportunity for the government to fudge the CPI. I think they will fudge it as much as they can get away with, as all federal employees COLAs are based on it. Unfortunately, false reporting of this leads to monetary policy decisions that are skewed. Of course, it’s the only game in town, so getting inflaiton adjusted income based on it is better than no income at all.

But keep in mind that at with this current administration the inflation figures are *highly* subjective at best!

Obama is giving SS seniors a ZERO COLA in 2010 claiming no inflation (actually deflation!) in 2009. Do you seriously think there was zero inflation in 2009?? And word on the street via White House leaks is that he’s going to claim the same for 2010 thereby no COLA for SS in 2011 too!

With that in mind, how can you be so sure the Treasury won’t follow suit and have little or now inflation adjustment for these bonds? Think about it: How can the White House claim zero inflation and therefore zero SS COLA yet the Treasury have an inflation adjustment upward on TIPS and I-bonds??

(Unless it’s one hand not knowing what the other is doing. )