EDITOR NOTE: The website ShadowStats provides an incredibly valuable service for all Americans. It attempts, through careful, detailed, and sober calculation, to represent the truth of our economic realities, contrary to the “official” figures that constitute the government’s deceptive narratives. Two to three years ago, while inflation was woefully low, according to the Fed, ShadowStats demonstrated that if we used the same inflation calculations that we did in the 1970s--as it had been changed twice over the last three decades--our inflation then would have been closer to 10%. Now, inflation would stand at 13.5%, that is, if we used the same calculations. The site’s founder, John Williams, has some news for us--a warning, in fact, based on the current course of America’s monetary policy. Allow me to state it in the form of a question: are we headed down the same path as the Weimar Republic--toward a devastating hyperinflationary spiral?
John Williams, founder of ShadowStats, discusses with David Lin, anchor for Kitco News, why the U.S. is headed towards hyperinflation.
Williams, who calculates the inflation rate using methodology the U.S. government used in the 1980s before revisions, estimated that the current rate of inflation is already 13.5 %, much higher than the 5.4% that the Bureau of Labor Statistics reported for June.
"What you're seeing right now in the way of what the Fed's doing, it's money creation, and it's still growing," Williams said. "The most basic measure [of money creation], what I call M1, is up over 80% from its pre-pandemic level. The Fed's not about to pull back, they can't. The system's not stable. It's a very difficult and dangerous circumstance."
For the best inflation hedges, according to Williams, watch the video above. Follow David Lin on Twitter: @davidlin_TV
Originally posted on Kitco