The change in the Consumer Price Index - which indicates the rate of inflation or deflation - is the only way we know what is happening with the real value of fiat money. This affects everyone in an economy. Messing around with the CPI should be a criminal offence punishable with a severe prison sentence.
See the following report on Bloomberg:
Economists and politicians, including former central bank President Alfonso Prat-Gay, have challenged official data since former President Nestor Kirchner started to replace personnel at the Buenos Aires-based statistics institute in January 2007.
Kirchner´s wife is the current Argentine President who will most probably be in South Africa if Maradonna´s team get to the final.
The lack of understanding the fact that accountants implementing Historical Cost Accounting is the cause of the destruction of the real value of constant real value non-monetary items (salaries, wages, issued share capital, retained earnings, all other items in shareholders´ equity, trade debtors, trade creditors, all other non-monetary receivables and all other non-monetary payables, etc) makes everone so concerned about inflation when, in fact, they can stop that unknowing, unnecessary and unintentional destruction by accountants when accountants freely change over to financial capital maintenance in units of constant purchasing power as authorized in International Financial Reporting Standards in the Framework, Par 104 (a) twenty one years ago.
Kindest regards
Nicolaas Smith
realvalueaccounting@yahoo.com
Copyright © 2010 Nicolaas J Smith
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