Around 2%? Where did you get that number? Did the government tell you so?
I would be more inclined to stick with the BLS' broader, more "real world" straight reporting pre-1980-methodology-based estimates (just the straight-reporting facts, ma'am), as published by shadowstats, which would put inflation closer to 10% (and climbing), and not so "Hey, Piss In Your Face = Warm Rain!", as the current CPI-U does, with its constantly revised hedonics, quality adjustments and geometric weightings (which has ZIP, ZERO, NADA to to do with modelling human behavior).
Anyone who honestly believes that real price inflation due to monetary inflation is the 1.7% (COLA adjustment based on BLS data) is completely out of touch with reality, and living in a world of mental absurdities.
I think you have to operate from inside an unbelievably credulous vacuum to buy into think that
price inflation (due to monetary inflation only) is really is "around 2%". But it doesn't matter. Here's the beauty (or ugliness, or reality) of it: Whatever the fundamentals are in terms of real numbers, these will all play out as mathematical certainties, REGARDLESS OF BELIEF.
So if price inflation really is "around 2%", as declared in the updated CPI-U Scriptures, that's a doubling rate of around 35 years. If true, then OOH LA LA, and yippee-kai-ay, that's great news for everyone! The Fed, Treasury and banks can probably milk that system for a good time to come.
IF, on the other hand, the rate of price inflation is closer to 10% now, and accelerating, as I believe it is, then we're talking about a doubling rate of around 7 years --
and decreasing.
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