Keep Alert CPI reported Lower INTENTIONALLY
This is a risk caused by benefit conflict.
Why gov reports CPI lower than prediction?
(1) hide the fact of inflation
(2) higher CPI => investors ask higher interest rate of bonds => gov pays more interest on debts
(3) higher interest rate of bonds => not good for non-growing stocks => companies collect less money from stock markets but need to release more bonds.
I have bought USD. Should I cut loss?
(1) I guess it is stop hunting. If stop hunting is executed, I consider buy more.
What we can do?
(1) I encourage people expose more evidences show CPI is actually higher than gov claims.
(2) Inflation is different from devaluation of debts. If consumer price becomes cheaper, we have more money to return debts, so cheaperer consumer price can also approaches devaluation of debts.
Why gov reports CPI lower than prediction?
(1) hide the fact of inflation
(2) higher CPI => investors ask higher interest rate of bonds => gov pays more interest on debts
(3) higher interest rate of bonds => not good for non-growing stocks => companies collect less money from stock markets but need to release more bonds.
I have bought USD. Should I cut loss?
(1) I guess it is stop hunting. If stop hunting is executed, I consider buy more.
What we can do?
(1) I encourage people expose more evidences show CPI is actually higher than gov claims.
(2) Inflation is different from devaluation of debts. If consumer price becomes cheaper, we have more money to return debts, so cheaperer consumer price can also approaches devaluation of debts.
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