5 Reasons Why Deflation Is Good for Retirees

Wake up investors. If the CPI does not include the inflation in energy and food, you will never see a true adjustment to your TIPS investment.

Energy and food are NEEDS, not WANTS. At $4.00 a gal for fuel and rising food prices, inflation is not correctly stated by the CPI.

Consumers must purchases these commodities to live. They can leave the TV, colorfull shirt and jeans, or foolish toy at the check out register on the shelves, but they must eat and go to work. The CPI reported by the gov't and used to adjust TIPS is just that TIPS (Taxpayers Imaginary Perception of Support).

Why doesn't the gov't use the actual inflation rate which includes unavoidable expenditures such as energy and food. Once again, the gov't, by not allowing these two major categories in their adjusting calculation, is involved in a mistruth ( read lie). Inflation is inflation. If gas goes from $3.00 to $4.00, there is a 33% inflation rate for this commodity, but your investment in tips will never reflect this increase in cost.

The same situation exists when food prices increase. Deception, not honest inflation is the situation here. Once again, the smoke and mirrors show is on center stage, at the government theatre of lies and deception. Be honest politicians, call a CPI a CPI. If I spend $60 to fill my gas tank that use to cost me $20 to do, it is a 200% inflation rate that my TIPS will never be adjusted for.

OK everyone all together now .... Duped again by the Feds!

Chuck Murphy of MA 5:40PM March 31, 2011