Soaring commodity and house prices are further proof that inflation is here to stay and it is much higher than the Federal Reserve wants Americans to believe, according to Max Keiser and Stacy Herbert.
“Because there’s some antagonism and because incomes in China have now matched those of the US, that ability to hide the money printing through the labor sink of China is gone. So now you have prices going up for real for stuff like lumber,” he said. “The Fed says it’s transitory… it’s categorically a lie.”
The central bank earlier said that it will continue its easy money policy, despite it acknowledging that inflation is on the rise. In March, the Consumer Price Index (CPI) jumped 2.6%, but government officials believe that the spike is short-lived.
“The inflation numbers are understated not for the reasons we’ve talked about – like the absence of including things like healthcare, and education, and housing in the official CPI numbers,” Keiser noted, adding that the real figures could be at 7-9%.
Another factor missing in those figures is shrinkflation, according to the host, meaning you buy items for the same price, but get less in the package.
“So if you add that together… now you’re talking 20% inflation,” Keiser said.
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This post originally appeared on RT Business News