John Williams Shadow Stats: Hyper-inflation in the US sometime in 2014

For those that don’t know John Williams is the only person out there who has a website dedicated to keeping economic data honest – a very tough task these days.

As a good example last week we wrote a note about the uselessness of the CPI and RPI numbers in the UK. We said this based on the fact that the way that the RPI and CPI have been calculated over the years changes on an almost annual basis.

Well John Williams goes back and re-calculates the US CPI using the same methodology that was used back in 1980:

In the charts to the right [below] we show two SGS-Alternate CPI estimates: One based on the pre-1990 official methodology for computing the CPI-U, and the other based on the methodology which was employed prior to 1980.

And when you do that here’s what the result is:

(Click for sharper image)

That’s right, when you calculate the CPI using the exact methodology that was used by the government pre-1980 the real CPI is running at nearer 9% in the US instead of the official figure of around 2% today. That’s a big difference.

John recently did an interview that is a must watch. He’s now moved his hyper-inflation call from occurring sometime towards 2020 to now happening in the next 3 years – thanks to all the money printing courtesy of the Fed.

He also claims that the if the US government used GAPP (Generally Accepted Accounting Practice), something that all private business have to do, to calculate the budget deficit, then the real number is a staggering $5tn per-year instead of the $1+tn that the government claims it is running.

Related posts:

1. John Williams: Hyperinflation and Double-Dip Recession Ahead
2. The surest way to see if John Major is right about ‘green shoots’ is if the BoE stops printing money
3. If the economy is doing so well John Major then why did the government run a record deficit in August?
4. Gold and Silver Prices Will Explode Again: John Hathaway
5. Using the ‘Beer Price Index’ the all time inflation adjusted high price of gold is £3730

Link to this article: : http://www.goldmadesimplenews.com/interviews/john-williams-of-shadow-stats-8139/

Posted by Kate Gerbich on Sep 27 2012. Filed under Interviews. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.