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Is The Real Rate Of Inflation More Than Twice As High As The Number We Were Just Given?

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I warned you that inflation was going to get worse.  On Thursday, we learned that the consumer price index was 7.5 percent higher in January than it was a year ago.  We are being told that this was the highest reading since February 1982, and that sounds really bad.  But it isn’t exactly honest, because the truth is that the way the inflation rate is calculated has been changed more than two dozen times since 1980.  So if we are going to compare the rate of inflation today to historical numbers, we should actually be doing an apples to apples comparison.

Fortunately, there is someone out there that takes care of the math for us.  According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation would be above 10 percent right now.  And if inflation was still calculated the way that it was back in 1980, the official rate of inflation would be above 15 percent right now.

In other words, using the same methodology that the government used in 1980 would give us an official rate of inflation that is more than double the official number that we have just been given.

Wow.

Many have compared the current crisis to the Jimmy Carter era, but the truth is that we are now surpassing anything that we witnessed back then.

On her Twitter account, Washington Post columnist Heather Long shared some specific numbers from the inflation report which show where American consumers are being hit the hardest…

Used cars 40.5% y/y
Gas 40%
Rental cars 29%
Utility gas 24%
Hotels 21%
Furniture 20%
Bacon 18%
Steak 17%
Peanut Butter 15.5%
Pork 14.5%
Fish 13%
Eggs 13%
New cars 12%
Electric 11%
Chicken 10%
Oranges 10%

I am particularly concerned about the rise in energy prices.

According to the Labor Department, energy prices overall are up a whopping 27 percent over the past year…

The Labor Department reported that gasoline prices have skyrocketed 40% over the past year, while natural gas has surged 22.6% and electricity is up 10.7%. A gallon of gas, on average, cost $3.47 nationwide Thursday, according to AAA, up from $2.47 a year ago. In California, gas prices are well over $4 per gallon.

In all, energy prices have climbed more than 27% over the course of the past 12 months.

A lot of people expect that this new energy crisis will just be “temporary” just like the energy crisis of the 1970s was.

But this time is very different.

As I have discussed previously, easily accessible energy reserves are steadily being depleted, and that means that we are going to become increasingly dependent on energy reserves that are more costly to extract.

In addition, major financial institutions have become extremely hesitant to fund projects that have anything to do with traditional forms of energy.  They don’t want to be seen as “contributing to global warming”, and so they are focusing on funding alternative energy projects instead.

But alternative energy sources are not producing enough to keep up with global demand.

So we are now facing a major crunch, and it isn’t going to go away.

In fact, it is only going to get worse.

On Thursday, Joe Biden promised to “work like the devil to bring gas prices down”.

Really?

Exactly how does he plan to do that?

He already ordered a very large release from the Strategic Petroleum Reserve back in November, and that didn’t work.

And that was actually a very stupid thing to do, because we are going to need those reserves someday.

The cost of food continues to rise very aggressively as well.  According to CNBC, one way that Americans can cope with this is by eating less meat and less dairy…

Meat and dairy tend to be the more expensive items at the supermarket, and especially of late. In response, aim to make more meals that don’t rely on them as the central ingredient, Brown said.

“Using meat sparingly as flavor, like adding a bit of bacon to a mushroom risotto, is more economical,” she said. Consuming less meat also helps you to lower your environmental footprint, she added.

The elite really don’t want us to eat much meat anyway, and so this would work out very well for them.

Of course Biden realizes that ordinary Americans are becoming increasingly frustrated, but he is assuring us that “we will make it through this challenge”

“On higher prices, we have been using every tool at our disposal, and while today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge,” Biden said in a statement responding to the report.

Unfortunately for Biden, the American people are increasingly losing faith in his leadership.

In fact, CNN just reported on some new approval numbers that are absolutely dismal

“Nearly 6 in 10 Americans disapprove of how Joe Biden is handling his presidency, with most of that group saying there’s literally nothing Biden has done since taking office that they approve of,” CNN detailed.

The latest survey, taken January 10-February 6, 2022, shows 58 percent disapproving of Biden’s job performance, compared to 41 percent who approve. That reflects a seven-point increase in the number who disapproved from the last survey, taken in December 2021.

So where do we go from here?

Well, many are expecting that the Federal Reserve will soon be substantially raising interest rates

The chances of a 0.5 percentage point Fed rate increase in March rose to 44.3% following the data release, compared with 25% just before, according to CME data. Chances of a sixth quarter-percentage point hike this year rose to about 63%, compared with about 53% before the release.

“With another surprise jump in inflation in January, markets continue to be concerned about an aggressive Fed,” said Barry Gilbert, asset allocation strategist at LPL Financial. “While things may start getting better from here, market anxiety about potential Fed overtightening won’t go away until there are clear signs inflation is coming under control.”

When I saw the term “overtightening”, I just had to chuckle.

The Fed has had interest rates pushed to the floor for more than a decade, and someone actually has the gall to suggest that the Fed could soon be engaged in “overtightening”?

When the Fed pushed interest rates into the stratosphere in the early 1980s, that was overtightening.

Any rate hikes that we see in 2022 will be extremely modest by comparison.

But without a doubt, any rate hikes at all will be painful for the financial markets.  Low interest rates helped to fuel the absurd bubble that we are in right now, and many investors could interpret higher rates as a sign that the party is finally about to come to an end.

***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “7 Year Apocalypse” is now available on Amazon.com.  During this season, I would like to encourage you to send digital copies of my new book to your family and friends as gifts.  That will help to support the work that I am doing, and it will help to multiply the impact of the book.  In addition to my new book I have written five other books that are available on Amazon.com including  “Lost Prophecies Of The Future Of America”“The Beginning Of The End”“Get Prepared Now”, and “Living A Life That Really Matters”. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post Is The Real Rate Of Inflation More Than Twice As High As The Number We Were Just Given? appeared first on The Economic Collapse.

Michael Snyder is the publisher of The Economic Collapse Blog, The American Dream Blog and The Truth. You can follow him on Twitter right here.



Source: http://theeconomiccollapseblog.com/is-the-real-rate-of-inflation-more-than-twice-as-high-as-the-number-we-were-just-given/


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    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Total 4 comments
    • morphnad

      The real rate is about 30%, four times as high. Anyone who shops for food and commutes to work in a gas powered vehicle is more than aware of the lies and deception we’re being fed by the mofos in power.

    • Searcher

      Morphnad may be correct but Shadowstats is a general benchmark of actual inflation and is fairly accurate if you use their model that reports inflation based on the U.S. 1980 inflation criteria. The current U.S. inflation measure is the result of multiple changes in the inflation model that greatly understate the actual rate of inflation. The overall inflation rate is between 15 and 20% per year based on inflation data that is a couple of months old. The actual (unofficial) inflation rate a couple of months from now will likely be about 20%. By the end of the year we may very well reach (or even surpass) Morphad’s estimate of 30%.

    • beLIEve

      “THEY”……the ENRICHED THIEVES (BANK$TER “j00$” / FREAKMA$ONS,etc) are…….NOW ……”playing”……….BANKRUPT :!: :mad:

      The “WEALTH”…….is either GONE ….OR…….. :idea: HIDDEN :?: :!:

      ManKIND is now….SUB-jew-GATED……in “Covid” GENOCIDE…….due to the BANKRUPTCY of the THIEVING “FRANKENSTEIN meat-$uit”

      BANK$TER “j00$” :!: :evil: :twisted: :idea:

      ***

      :idea: So-called…”Covid”…..is…”apparently”…. $TAGED….TO OFFSET….an International FINANCIAL COLLAPSE :!: :twisted: :idea:

      ***

      The “narrative” below is QUOTED from the :arrow: BIN article…….LINKED…. :idea: :idea:

      “What WE ARE TOLD…was that in order….TO OFFSET…….what was essentially…… :idea: AN ECONOMIC COLLAPSE :!: :lol: :twisted: :idea: ………ON AN INTERNATIONAL SCALE……..that the Federal GOVERNMENT WAS GOING TO OFFER Canadians….. a total DEBT RELIEF” :!: :lol: :evil: :twisted:

      ……sounds good :twisted: …but wait. This is HOW IT WORKS… :cry: :idea:

      * :mad:

      “The Federal GOVERNMENT…WILL OFFER….TO ELIMINATE ALL PERSONAL DEBTS….all MORTGAGES….all LOANS…..all CREDIT CARD…etc……which…….all FUNDING will be PROVIDED BY the IMF :evil: …….under what will become…KNOWN AS……the WORLD DEBT RESET [A1] Program.
      In exchange for acceptance of this Total…..DEBT FORGIVENESS :lol: :wink: …..the INDIVIDUAL WOULD FORFEIT ALL OWNERSHIP….OF ANY PROPERTY…and…… :mad: A$$ET$ FOREVER [B]. :idea:

      The INDIVIDUAL WOULD ALSO HAVE TO AGREE….TO PARTAKE IN the COVID-19 and COVID-21 VACCINATION Schedule[C]…..
      WITCH :oops: WILL PROVIDE the INDIVIDUAL WITH…….UNRESTRICTED TRAVEL……AND…..UNRESTRICTED LIVING…..EVEN UNDER A FULL LOCKDOWN……..THROUGH the U$E OF…..a PHOTO IDENTIFICATION [D]
      referred to as CANADA’S HEALTH PASS.“ :mad:

      ***

      INFORMATION…. courtesy of…….Dr Rashid A. Buttar……

      VIDEO …….1 HOUR

      20th October 2020 :idea:

      DR RASHID A BUTTAR CANADA MESSAGE IMPORTANT

      https://www.bitchute.com/video/D9hq8jfy361u/

      *
      Canada Source: COVID-19 strain to change, 2nd Lockdown, VIRU$ spread to GET WOR$E…… :idea: RE$ET-DEBT-RELIEF :evil: :idea: …….FORCE VACCINATION…..ISOLATION CAMPS, etc :!: :!: :idea: :twisted:

      ORIGINALLY posted OCTOBER 2020 :idea: ……REPOSTED Tuesday, February 8, 2022 :idea:

      /police-state/2022/02/canada-source-covid-19-strain-to-change-2nd-lockdown-virus-spread-to-get-worse-reset-debt-relief-force-vaccination-isolation-camps-etc-6286.html

      • beLIEve

        :oops: APOLOGIES……CORRECTED LINK……..the VIDEO link for the TRANSCRIPT ABOVE is………

        *

        Dr Rashid BUTTAR – Canada’s LEAKED EMAIL plan for The GREAT RESET :!: :evil: :idea: :idea:

        22nd November 2020 :idea:

        https://www.bitchute.com/video/rohIOohpGkP6/

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