Rigged CPI

Rigged is a term that's getting tossed around a lot these days whether its about election results or whatever. Yet one of the biggest violators of rigging is the Bureau Labor Statistics and by proxy the Federal Reserve Bank. They routinely give out bogus numbers to stem the tides of chaos.

Chaos is the appellation they give to the nearly worthless paper they toss around called money. Do you want to own dollars here? Of course. As it goes higher you can afford to buy more worthless Chinese junk at Wal Mart, just what they want you to do, so down the road in the next turn down you can hold your next garage sale to help pay your mortgage.

The chart below shows just some of the effects of rising health care costs, in this case insurance premiums for Obama's Affordable health care cost. Now one thing you learn from politicians of all stripes is they underestimate the cost of new projects--See just two recent California examples, the proposed Bullet train and a new bridge--and overestimate the revenue of higher taxes.

So with Fed Chair Janet Yellen's new favorite buzz term, "high pressure economy," you can look for what they've been trying to conjure for a longtime, inflation. In this case, slow growth and inflation. Some feel the deflationary effects of low oil prices are long in this market. A higher CPI however gerrymandered, will lead to the perception of higher inflation if nothing else. It's perception not old men that rules.

Despite Mario Draghi's well-rehearsed lines, central bankers are as broke as the countries they centralize over. So for your investing needs TIPS might get more interesting and, despite the stronger dollar that rate hikes will bring and the outcries of those anti-gold banshees, metals and commodities might deserve another look, too. This is counter intuitive to be sure.

What's the difference between a manufacturing versus services-based economy--inflation. Get ready the old fashioned way. Skip the MSM hype.