The PPI is the number to watch. Many government costs depend on the CPI. Almost nothing depends on the PPI. Therefore it's much less likely to be manipulated and tends to better reflect reality. If you tell me prices have risen 7% YoY, I'm likely to say, yeah I can believe that. If you tell me it's 2% I'll call you a liar to your face, because you deserve it. How long until they start monkeying with this, too, just because the market starts watching it?
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The PPI is the number to watch. Many government costs depend on the CPI. Almost nothing depends on the PPI. Therefore it's much less likely to be manipulated and tends to better reflect reality. If you tell me prices have risen 7% YoY, I'm likely to say, yeah I can believe that. If you tell me it's 2% I'll call you a liar to your face, because you deserve it. How long until they start monkeying with this, too, just because the market starts watching it?
May 20 00:45 am
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