Posted By thestatedtruth.com on December 7, 2010

Here is the real reason that the old folks get no cost of living increase for Social Security……Inflation data relies heavily on housing prices and removes food and energy costs.  No kidding!  Ah, but Congress gave themselves a raise this year, I guess they looked at it the other way around.

U.S. government inflation data is “a sham” and is causing the Federal Reserve to vastly understate price pressures in the economy, influential U.S. investor Jim Rogers said on Tuesday.

The U.S. central bank uses inflation data that relies too heavily on housing prices, Rogers told the Reuters 2011 Investment Outlook Summit, and he criticized the Fed’s $600 billion bond-buying program.

Rogers, who rose to prominence after co-founding the now defunct Quantum Fund with billionaire investor George Soros some four decades ago, said he was betting against U.S. Treasuries. “I expect interest rates in the U.S. to go much, much, much higher over the next few years,” he said.

The core personal consumption expenditure index, which removes food and energy costs, is the Fed’s favored measure of inflation and was flat in October for the second straight month.

“Everybody in this room knows prices are going up for everything,” Rogers told the Reuters Summit.

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Tags: inflation data