America’s media, central bankers, and bureaucrats continue to debate the rising inflation in the U.S. that has raised the cost of living and increased the prices of goods and services nationwide. Senator Rand Paul, R-Ky., believes the inflation is “only going to get worse” and he published a report on the issue and blamed excessive coronavirus relief spending by Congress. Furthermore, a new decentralized method of measuring inflation has been introduced called Truflation, a tool that provides a “daily, unbiased, data-driven, real-market inflation rate.”
Rand Paul’s Inflation Report Uncovers the ‘Hidden Tax,’ Report Blames Excessive Coronavirus Relief Spending
In the two years since the outbreak of coronavirus, the price of living has increased dramatically as well as the costs of goods and service. The U.S. Labor Department’s data published last week showed that inflation is the highest it has been in 40 years at 7% and last month’s consumer price index (CPI) data was the third consecutive month over 6%. The rising inflation has caused bureaucrats from the Democrat party to worry about the issue as they believe it could hurt U.S. president Joe Biden’s leadership.
A number of companies were influenced by the rising CPI. market analystsThe following are economists, central bankers and media pundits. politiciansIt is time to discuss inflation. Republican senator Rand Paul from Kentucky wrote a report called “The Hidden Tax,” which explains that inflation will likely get worse from here and that it’s hurting American families and small businesses. Paul claims that the U.S. government’s excessive spending during the Covid-19 epidemic is to blame.
Paul’s report highlights that 71% of American households who make $40K per year have “indicated economic hardships from rising prices” and 29% of people making $100K annually feel the same way. Paul’s report notes that the U.S. government spent $4.9 trillion for Covid-19 stimulus and now “Americans are faced with the hidden tax that is a risk with any form government spending: inflation.”
The Kentucky senator’s report adds:
The US has seen the most sustained and high-spending COVID-19 stimulus spending of $4.9 trillion. Though government stimulus spending was intended as a form of relief, and low and middle-income families as well as small business owners were promised that their taxes would not increase as a result of these packages, Americans are now paying a ‘hidden tax’ for these policies.
Chainlink Oracle Truflation Aims to Be More Accurate Than the CPI’s Cooked Rates
In addition to Paul’s report, last week Gold bug and economist Peter Schiff published a blog post called: “The Inflation Freight Train.” The report explained that the government’s consumer price index is “cooked” and shared statistics from the inflation aggregation website shadowstats.com.
Shadowstats data indicates that inflation rates may be higher than 7%. However, they are not as high at 15%. Patrick Batelink, an advocate for Chainlink, also contributed to this report. tweeted about a “true inflation index” called Truflation, a tool that reportedly provides “the most objective, decentralized, and frequent inflation updates possible.”
Batelink went on to discuss the tool further:
This represents U.S. inflation. There will be many other true fiat inflationindices as products and services get more costly around the globe. Truflation Index API can be served by the Chainlink Oracle decentralized on-chain, and is available for compatible smart contracts. On-chain, the Truflation Oracle feeds our custom inflation index through Chainlink.
The official Truflation Twitter account tweeted about the government’s official CPI data published last week. “The official U.S. inflation rate is 40 years high,” the Truflation account tweeted. “Our data shows it is dramatically higher than the official rate. YoY % Change December 2021: Official CPI: 7.0%. Truflation index: 11.4%.” Essentially, Truflation is an oracle and in order to leverage the oracle, users must utilize Chainlink in order to request a smart contract. Moreover, Truflation’s oracle has documentation so users can learn how to leverage the index.
Truflation’s web portal notes that governments reporting on calculated inflation rates often use methods and formulas that show lower rates. “Governments and central banks are responsible for gathering information, calculating metrics, and reporting to the public,” Truflation’s website details. “The way inflation is calculated changes often, favoring methods that report lower inflation rates.”
Another question that the website of the decentralized inflation index raises is:
The official inflation rate would fall to 14% and 10% respectively if the calculation was made using the old methods from the 1980s and 1990s. Even lower inflation is reported by the Bureau of Labor Statistics’s latest inflation indexes. Why would government lower an important metric for economy?
What do you think about the rising U.S. inflation rates and senator Rand Paul’s report saying that inflation will only get worse? Do you have any thoughts on the Chainlink Truflation inflation oracle? Comment below and let us know how you feel about the subject.
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