AI summary of the Burrito inflation index
This is a AI powered summary of the old article
“If people knew the actual inflation rate, it would implode the entire system”
Summary in 5 bullet points:
The author uses the "Burrito Index," tracking the cost of a burrito at their local taco truck, as a measure of real-world inflation, which they argue is significantly higher than the official inflation rate reported by the government.
Since 2001, the cost of a burrito from their local taco truck has increased by 160%, whereas the official inflation rate suggests that the cost should have risen only by 35%.
The author claims that real-world inflation is around 7% per year, much higher than the official inflation rate of approximately 1% per year.
If the true rate of inflation was acknowledged, the author predicts that there would be significant consequences, such as Social Security beneficiaries demanding higher annual increases, global investors demanding higher yields on Treasury bonds, and a rise in private-sector interest rates, which would impact private borrowing.
The author concludes that the real rate of inflation must be concealed as its revelation would destabilize the status quo and collapse the entire system, especially affecting those whose income has stagnated and those who depend on wages rather than assets.