When someone puts forth an idea to collect data or correct a wrong, they are usually seeking to do good. The opposition which is usually the status quo, seek to limit the power of this new agency. One of the ways they neutralize a bureaucrat is by appointment. When their puppet achieves power, they have that person nominate their type of people to run agencies. This is the same basic flaw that is inherit to the Supreme Court. I reveal this in depth in my unpublished work, The Evolution of Democracy: the Book of Multiple Ideas and Predictions.
As for the bureaucratic agency, they learn the ropes to stay in their cushy position by playing politics. An administration makes known its focus. The agency responds by supplying data that falls inline to the administration's liking. They do this behind closed doors. They adjust their data or the components for the data to get the results that keeps their job. This is another sad aspect of democracy.
Last week...
the bureau of the Labor Department released their monthly report on inflation. It showed that inflationary pressures are subsiding in August. The Federal Reserve will use this to "prove" their position on inflation. It is transitory.
At one time in my life I would say to myself - yes, I see inflation. However, the people in the know say it will be temporary. This type of report would calm my nerves about rising prices. With time one gains experience. My experience shows that you cannot trust politicians, big money and bureaucrats. Let us consider the report by the Labor Dept.
Did you know...
the data collected did not include 20% of our economy? They do not mention their data has a but and it is a big butt. That's right! Just like the Fed that lies about everything, especially inflation, the Labor Dept. does not include online sales. The Fed does not include the three necessities of life: food, energy and shelter in their matrix formula. The Labor Dept. does not collect data on internet sales. This component has grown every year and it now makes up one in five sales for consumers. Sales online have increased for 15-straight months. So, let us check what is happening in online sales.
Adobe Digital
reported that merchants are raising prices. They complied data in many categories. It shows both increases in price as well as declining prices. Here is a sample list.
Apparel is up 5.52%... Non-prescription drugs is up 4.68%... sporting goods are up 3.47%. There are increased prices for medical equipment and supplies, furniture, appliances and pet products.
Declining prices were in office supplies at 1.53%... books at 1.61%... electronics at 1.82%. There were big declines in toys and computers.
Here is a quiz. Guess which category the Fed Chair will use in his next speech? Whatever your choice, I bet it comes from the declining side of the equation.
Global Issue...
inflation is becoming a world problem. We cannot show all aspects with limited space, but we chose Australia. Why, you ask? The nation does the most of its trading with the Pacific Rim. We concentrated on housing because the construction of a house has many components across all areas from copper and lumber to appliances and paint. Housing prices are up over 14%. This means many components cost more and as a result so does the house. Keep in mind that we import most of our stuff from China and the Pacific Rim. Also, we admit that we don't know every agency in the global network, but we tap common links like the United Nations. Its latest report on international food prices shows the global community is paying 31% more as compared to last year. The Fed will never mention global food prices, but here is another sad statistic. The US imports more food than we export. Youza!
In another report by Data Trek Research, it says that US food prices have grown by 8% since 2019. So much for transitory inflation. One reason is the imported food. The same report shows imported food prices have risen 0.6% in month over month and 10% year over year. One culprit is shipping costs. The other culprit is lack of tariffs to protect American farmers. Our nation should never import more food than we export. What agency tells us these facts? Peace.
