Inflation Actually Near 10% Using Older Measure

Discussion in 'Politics & Religion' started by Free Thinker, Apr 14, 2011.

  1. After former Federal Reserve Chairman Paul Volcker was appointed in 1979, the consumer price index surged into the double digits, causing the now revered Fed Chief to double the benchmark interest rate in order to break the back of inflation. Using the methodology in place at that time puts the CPI back near those levels.

    Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

    Since 1980, the Bureau of Labor Statistics has changed the way it calculates the CPI in order to account for the substitution of products, improvements in quality (i.e. iPad 2 costing the same as original iPad) and other things. Backing out more methods implemented in 1990 by the BLS still puts inflation at a 5.5 percent rate and getting worse, according to the calculations by the newsletter’s web site, Shadowstats.com.

    http://www.cnbc.com/id/42551209
     
  2. Lucrum

    Lucrum

    Thank you Obama!
     


  3. . . :D . . You a funny guy Luke.......but don't quit your day job yet . :)
     
  4. Ricter

    Ricter

    Inflation is much worse than this, even, if you look primarily at, for example, copper.
     
  5. jem

    jem

    Or the price of mexican food.
    I payed 5.75 for a carne asada burrito yesterday at a hole in the wall.


    they were 4.50 at the same place a year and half ago.
     
  6. Ricter

    Ricter

    Inflation, Mexican food...

    pun?
     
  7. Tsing Tao

    Tsing Tao

    the only blame obama gets is for re instituting the same idiot who bush put in place - banana ben.

    otherwise, all the fault goes the ben.