Video Closed Captioning:
good evening everyone how you doing
today michael zuber one rental at a time
i very
very almost actually i think this is the
very first time in three years
that i have done a live stream late on a
sunday evening
the reason is is normally on sundays i
do my interview in the morning with
laura morby i do my goals video do my
community video and then hey
it’s one kind of free day to rest and
recharge before we start right up
tomorrow morning with greg dickerson one
of our multi-millionaire experts
but something has been bothering me
i think you and i have known for quite a
while that the cpi
report has been under reporting
rent
it has been going on for quite a while
now and has annoyed me but this last
report
i finally had enough
so what i’m going to ask you to do is
we’re going to take out a piece of paper
and together you and i are going to
calculate the actual
cpi and based on my math the actual cpi
is 10
now michael you might say how can we do
this
well the answer is
they have given us the math
so what we are going to do first is we
are going to deconstruct the 6.8 percent
and then we are going to reconstruct
that number with the correct
rent equivalent
and when we do that we will see that cpi
is actually double
digits
yes folks it brings me no joy brings me
no happiness to share with you that what
we are about to go through produces a 10
percent cpi
not 6.8 percent not highest since 1982
we are talking
crazy inflation going on so
in order to get to the correct number we
must first deconstruct the 6.8 which
means we have to back out the bogus rent
calculation so how do you do that well
the good news is it’s just math so
the first thing we need to do is we need
to back out the rent equivalent rent
from the 6.8 so how do we do that
well we take the
3.5 percent which they gave us in the
report so this is again their numbers
and we have to multiply 3.5
times
28
why 28
well
28
of cpi is rent
so any movement in rent really does have
an outsized impact on cpi
so if rent is drastically
under reported
cpi is drastically underreported so
the first step take 3.5
times 28
or 0.28
that equals
0.98 or we’ll round it up to one full
percentage point so the first thing
the first thing we must do
is you must take 6.8 which was the
reported cpi number and subtract
1
right
so the number now is 5.8
well as we just said cpi makes up
rent equivalent makes up 28 of the cpi
so we must add back in the correct cpi
calculation for rent
so here’s the deal
rent equivalent in the cpi report is
supposed to be single family not
apartments not multi-dwelling single
family i spent about 10 minutes bouncing
around google i got all kinds of numbers
ranging from 15
to 18.7
so
just because it’s government work i
chose the lowest number i chose 15
so now what do you do well kind of the
same math we did to deconstruct the 6.8
we have to multiply
15
by the same 28
or 2 or 0.28
if you do that equals 4.2
that is a huge difference right 0.98
versus 4.2 so what do you do well
remember what we did first we took the
6.8 number and we subtracted one percent
right so it’s 5.8 guess what you take
the 5.8 plus the 4.2
and bingo bango
10
cpi is 10
we are seeing inflation in everything
that is important to everyone in the
past they could lie to you about
transitory saying use card airline
tickets how many times are you going to
buy those things
well now folks
it’s rent and i think rent’s
accelerating
it’s food it’s fuel it’s heating
10 percent
now if the government reported 10 or
double-digit inflation oh my god the
market would lose their mind
that’s why they are in no hurry to clean
up this
bogus
underreported
just ridiculously silly
rent equivalent of 3.5
percent
it’s not 3.5 folks it’s closer to 15 if
not over 15.
and when rent is 28 of the calculation
that 12
or 11 and a half percent difference
is gargantuan
yeah
you can actually calculate your own cpi
and we just did it it’s not 6.8
it’s 10
rent is up 15 in single family homes
if you work out these numbers and you
get a different number let me know i did
the math over here little sprit little
chicken scratch
but yes that’s where we are uh cpi is at
least double digits and that is um
that should be scary powell had better
titan on wednesday
you can’t keep printing money and
throwing money out of helicopters and
hope that inflation doesn’t happen
that’s not that’s not how it works so
again folks i don’t normally do sunday
evening almost rants this is this a rant
or is this just math
this is probably a little bit of a rant
it was clearly bothering me i thought
about waiting till tomorrow and i’m like
if i do that i don’t think i’m going to
be able to sleep so
there you go folks you learned something
cool today cpi for the month of november
was actually 10
have a wonderful evening if you like
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exciting day tomorrow enjoy your sunday
evening bye-bye