Dragonwood Chronicles: The Consumer Price Index is a Lie

Wecome to Dragonwood Chronicles

Tucked away deep in the woods at the southern edge of the Tug Hill region of New York. Dragonwood is our off-grid sanctuary. Six acres of pond and gardens bordered by forest on three sides.

The project began in 1995, when after a long search, Debe and I purchased the property from a local logger. To date we have built a cabin, a bridge, out house, two sheds in addition to expansive gardens and stone work. We have a generator, propane lights, refrigerator and grill, a wood stove and modest solar system. A dug well and small stream suitable for watering gardens and other needs and a nearby spring for drinking water.

The Dragonwood Chronicles will serve to document the project with photographs and notes. Future projects will include additions to the cabin, a root cellar and a studio building.

Saturday, June 5, 2010

The Consumer Price Index is a Lie

The following is an excerpt from an interview with Jim Rogers by Ron Hera.

HRN: You mentioned that the US is the largest debtor nation in the history of the world. Do you think that will lead to high inflation or hyperinflation in the US?

Jim Rogers: Well, there will be inflation. First, you have to have inflation before you can have hyperinflation. I mean, we have inflation now. If you go to the shop, whether it's groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don't: Australia, China, India and Norway. Many countries don't lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

HRN: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

Jim Rogers: In my opinion, yes, of course it is. Have you looked at it? They've changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn't count it, saying rents weren't going up, and then when home prices started going down, they counted it. It's the same with many things. It's staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it's not really going up because it's better gasoline, better quality, therefore you're getting more for your money. I mean, it's endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says. As I said, in other countries, they acknowledge that there's inflation. I don't know how there could be inflation in Australia and not in the US; how you can have inflation in Norway or India and not in the US, but the US says there's no inflation.

To read the entire inerview go to
http://www.lewrockwell.com/rogers-j/rogers-j99.1.html or click on the link below for Lew Rockwell

Jim Rogers' English language books include Investment Biker: On the Road with Jim Rogers (1994), Adventure Capitalist: The Ultimate Road Trip (2003), Hot Commodities: How Anyone Can Invest Profitably in the World's Best Market (2007), A Bull in China (2008), and A Gift to My Children: A Father's Lessons for Life and Investing (2009).