Shadow inflation hovering over 8.5%; gov't uses CPI which significantly undercounts inflation

Don't implicitly trust the government numbers.  No I am not a conspiracy theorist.  You don't have to be.  Just because they don't run a profit, doesn't mean that they don't respond to pressure. 

We all know the unemployment rate would be hovering at 20% if we reported the same way they did during the Great Depression. 

The CPI inflation numbers are also suspect.  The way the government calculates the CPI has changed in the 80s and 90s.  If we used the same formula they used back then, our inflation rate today, or "shadow CPI" would be 8.51% instead of the 1.17% we report today for CPI. 

I'll be reporting the shadow numbers in addition to the government numbers from here out. 

There is a great chart which shows why we have reason to be skeptical.  Via dshort:


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