Inflation: The Biggest Scam of Our Time
As we Americans celebrated our Independence Day declared in 1776 this week, it is amazing to think that we’ve got listeners from 188 other countries around the world. And hopefully many of you believe as Jason does, how important the United States was in world history. Sadly, we are declining precipitously. It is head spinning how quickly the United States is just falling apart, but let’s hope that the pendulum swings the other way. We do have checks and balances with our three branches of government and a fantastic constitution. Our constitution was only the second example of its kind in all history, where a ruling class of government restricted its own power, and decided it was important to do that, so that individuals and citizens would have more power. By today’s standards — that’s a miracle! Can you imagine the CEO of one of the big companies today, restricting their own power and money and giving it up for the greater good? Our constitution is a beautiful document and many other countries followed this example.
No doubt you had a Fourth of July BBQ with family and friends last weekend and were impacted by the biggest scam of all: inflation. Two pounds of ground beef has almost doubled in price in just one year. Chicken has gone up about 35%, the price of lemonade is up, but potato salad and burger buns are holding steady. This is just one year of inflation folks. Only one year.
Consumer Price Index Manipulation
Now, this is a perfect example of how the Consumer Price Index, (a complete scam) is manipulated. The CPI is manipulated in three major ways: weighting, substitution and hedonic indexing. And right here is a great example of substitution. So you see that ground beef has almost doubled in price in one year and chicken breasts have gone up too, but not as much. So what they assume in this basket of goods of the Consumer Price Index is that if the price of beef goes up, everybody will just switch to chicken and that’s the number they use. Substitution is one of the ways they hide real inflation from us. Also, you hear them talking about core inflation or headline inflation, or the core rate. Well, the core rate strips out food and energy. Who on earth can live without food and energy? So that also sounds like a complete scam.
Inflation is soaring, destroying the value of our savings, stocks, bonds, even our equity in real estate, but thankfully, also destroying the value of debt. And that’s why Jason created the inflation induced debt destruction strategy many, many years ago. It is the most beautiful, hidden wealth creator. So take advantage by listening to his numerous shows and podcasts dedicated to it.
New Index on the Horizon
Jason has been very busy this last week working with our on staff economist to create a new index. You already know about The Hartman Comparison Index™, the revolutionary HCI, which helps you understand the real value of real estate by not just comparing it to one thing (the moving target called the US dollar, which would be completely erroneous), but by comparing it to many things in a very large basket of goods and services. Jason will be launching another brand new index shortly, which focuses on income. Jason has taught you for 18 years now, when he talks about his Three Dimensions of Real Estate Strategy, that income and housing prices are non correlating indicators. This new index will offer you tremendous insights into the income component of income property.
Housing inventory levels are rising in certain markets, but we are still a far cry from a normal market. The inventory scarcity issue is dramatically more pronounced and more weighted on the low end entry level spectrum of the real estate market. If you need assistance with your portfolio, whether it be determining the highest and best use for any assets, or if you have cash in the bank, money in the stock market, mutual funds, bonds, cryptocurrencies, whatever and you’re interested in income property (the most historically proven asset class in the entire world and the most tax favored asset class in America), go to JasonHartman.com for a free portfolio makeover. Reach out to us with your questions and follow Jason on social media and YouTube. He has so much informative content and many eye opening interviews, such as the latest with Peter S. Goodman, Global Economic Correspondent for The New York Times. Peter discusses his new book Davos Man: How the Billionaires Devoured the World. Is the World Economic Forum conference in Davos a serious discussion about climate change and injustice, or just a chance for billionaires to get together and do business? Don’t miss this exciting interview here!
Ashley & The Jason Hartman Team