The Federal Reserve has been misleading us

There is new information out that lays out a damning case that the Federal Reserve (and other Central Bankers around the globe) don’t have a clue on how to measure inflation. Alan Greenspan, the former head of the Fed’s, admitted last month in an interview at Wharton that “we have a problem with measuring inflation - - there is a bias in the statistics. You’re getting statistics which are not correct.” The implications of this revelation is indeed stunning, because if you “get the inflation number wrong you’ve blindfolded every economist.”
It is critical to have the correct inflation number because it is the foundation of a number of vital calculations: cost-of living adjustments for wages, tracking wages over time to determine such things as how middle class is doing, or the Fed’s interest-rate decisions like say in the early 2000’s which led to the housing mortgage bubble - - and then the financial crisis that almost brought down the entire global financial system - - and then the Great Recession in which we saw our political leaders double the national debt in only eight years. This is truly shocking, but if you think it couldn’t have been any worse, then you would be wrong.
Remember that is was the Feds who told the world that the inflation rate had exploded from 1 percent to a stunning 3.4 percent during 1966 – 1972, resulting in a perceived depreciation in the dollar causing a “gold rush” by foreign central banks to cash in their dollars for gold at unsustainable levels. President Richard Nixon panicked and took the dollar off the gold standard in 1971, thereby converting the entire global financial system to a fiat monetary system relying solely on the “full faith and credit of the U.S. government.” Since that time we have witnessed uncontrolled money printing and perpetual government deficits to finance ever expanding entitlement states in America, in Europe, in South America, and in Asia - - resulting in record high debt levels world wide - - leading our desperate political leaders and their central bank cohorts to now profess the benefits of negative interest rates and Modern Monetary Theory (MMT).
Yes, we are definitely flying blind. So when our new cast of political leaders want to sell us free health care, free college, free student loan forgiveness, etc. - - perhaps we should view their election year promises with a skeptical eye. This is not Monopoly that we are playing - -
Steve Gardes is a Certified Public Accountant (CPA) and Certified Valuation Analyst (CVA) with over 40 years of public accounting experience.