EDITOR'S NOTE: On the ‘Kerry Lutz's Financial Survival Network’ podcast, Lutz talks to John Williams, an economic expert who measures inflation without using the government’s “throwaway” numbers. Williams explained that, in the 1980s, the government changed the way they measure inflation — specifically the Consumer Price Index — to make the numbers look better for them. This has been the standard ever since and leads to under-calculated inflation numbers. Using the “real” traditional way of calculating inflation, Williams comes up with a very scary 14% right now, which is more than double the 6.2% the government is pegging the rise in CPI at. It’s also closer to what it feels like when you go to the grocery store these days so maybe Williams is truly on to something.
I have the opportunity to chat with John Williams, who has been studying inflation for years—looking into the numbers that the fed has been leaving out of the equation. The government has majorly changed the way that they measure inflation over time, and they have been making alterations to reduce the headline inflation rate. Tune in to get the more accurate depiction of inflation, and to hear about where this situation is headed in the near future.
Originally posted on Financial Survival Network.