muses of the moment

October 17, 2012

The Real Stats

Filed under: Inflation, Odds 'n ends, The Dollar Crisis, The Federal Reserve, The Financial Crisis — Tags: — totallygroovygirlfriday @ 12:38 pm

The real stats do not look as good as the “official” ones. The huge discrepancy between the official stats and reality on Main Street is found in the formula changes over the last 20 years designed to fool the people into thinking that things are better than they are. Did it work?

Here is John Williams latest summary of real stats. You pay for the detail, well worth the money.

Yep, real inflation rate is almost 10%, not 2%. That means the seniors, who just got a very low increase in their ss checks are still trapped in government formula hell.

– Quarterly Industrial Production Contracted for First Time Since Official Recession
– Quarterly Pace of Inflation Picked Up, With CPI and PPI Topping Market Expectations
– September Year-to-Year Inflation: 2.0% (CPI-U), 2.0% (CPI-W), 9.6% (SGS)
– Real Average Weekly Earnings Continued to Tumble
– Inflation Provided Half of September Retail Sales Growth

Scary, isn’t it?

Inflation-adjusted high for gold is now at $9513 and for silver, $553, according to John. That is an opportunity.

What that means is: if gold and silver were to just reach the last highs from 1980, in current inflation-adjusted dollars, those would be the high prices based on the original CPI formula.

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