MIT and ShadowStats Agree: Inflation Around 9%
Adam Sharp
Wealth Wire
I’ve followed John Williams’ Shadow Stats for years. When analyzing inflation-sensitive investments, I usually check his data first, then the traditional numbers. Here’s one of their most recent charts (link).
The blue line shows Williams’ alternative inflation rate at around 9%. That’s based on the his index, which is like the old CPI calculation method. The official rate is red, and clocks in sub-2% today.
MIT inflation measure indicates near 9% annual U.S. inflation
MIT’s Billion Prices Project tends to agree with Mr. Williams’ data. This alternative inflation measure shows a roughly .75% inflation monthly (12 x .75% = 9% annually). If the trend continues, Americans could be looking at near 10% annual price spikes.
Don’t expect official numbers to start showing uncomfortably-high inflation any time soon. But it’ll be there. At the pump, at the store.
A week ago I paid $7.85 for a large popcorn at the movie theater. It wasn’t even one of those buckets, which appear to have been phased out. Just a fairly large bag of popcorn. On top of $10.75 tickets.
Congressman Ron Paul talked inflation with Freedom Watch last week (clip below). He said consumer inflation in America may already be 9%, and cited ShadowStats.com as the source.
One of the other points Rep. Paul makes is important. Why is the Fed’s “ideal” inflation range 2-3%? It’s the most people will accept. Nations who begin monetizing their debt (as America started doing last year), are in desperate straits, having reached the limit of traditional interest-rate based policy.
In a growing, efficient economy, there’s no reason why inflation has to happen. Prices would typically go down in periods where productivity improves, as companies improve efficiency.
Mainstream economists tell us deflation is always bad, and inflation is a good thing. But consider the argument put forth by Matthew Lynn, who said that deflation is a “lemon we all have been sold”. Food for thought.
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MIT and ShadowStats Agree: Inflation Around 9% | Republic Broadcasting NetworkClick to expand...