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Washington Developed A System To Lie To You About Inflation, The Real Inflation Rate Is Much, Much Higher

June 11, 2022
Michael Robison

The rate of inflation has set record highs this year, but the 8.6% number you have seen is nothing more than a lie, a rouse, to make you feel better and help disguise the truth. 

For more than a year, inflation has been on an upward trend, the likes of which America has not seen in more than 75 years. But Biden and his Democratic party are consistently lying to you. They have developed a series of stories, narratives, and buzz words to make those lies more palatable. 

Over the past few decades, Washington as a whole, not just Biden, has been consistently changing how inflation is tracked and reported because it appears the economy is better than it truly happens to be. 

Annualized inflation just peaked at 17% for the first time since WW2, the highest rate in 75 years.

Inflation is correctly defined as an expansion of the nation’s money supply. However, during the 20th century, the federal government began a series of steps to expand the money supply to facilitate more expansive federal spending. Those steps included removing the gold standard, removing the gold peg, suppressing interest rates, printing money directly into the Treasury, pandemic stimulus checks, and more.

To cover for the careless handling of the nation’s money supply, the Fed changed its definition of inflation from an expansion in the money supply to a rise in the price of goods and services. 

The Bureau of Labor and Statistics originally created the Consumer Price Index (CPI) to measure how the nation was keeping up with a consistent standard of living. 

However, in 1980, the Fed altered its calculation for the CPI to no longer measure a constant “basket of goods” but instead utilized a hedonistic, strategic group of goods to measure inflation. The Fed further utilized theory to offset real-world numbers. 

For example, if a new car produced by Ford Motor company in 1986 theoretically cost $11,250, but the improved model in 1987 offered 10% better gas mileage at a price 5% higher, the CPI would reflect a reduction in the cost of new automobiles in 1987. The resulting report would reflect a 5% drop in new car pricing without accounting for the 5% increase in consumer cost.

They have continued to adjust these practices for decades. 

Thankfully, some sources continue to track and report the actual numbers based on a consistent “basket of goods” representing Americans’ usual standard of living. 

One such source is ShadowStats, a service that tracks the actual numbers and utilizes the Fed’s original calculators and standards for measuring the economics of the United States. 

The latest available data, which does not include the May CPI report as of this writing, shows that inflationary rates using the Fed’s old standard sits are about double what the government has told you, at 16.46%.

It is only logical to assume that once the team at ShadowStats includes the May report, that number will surpass 17%.

According to records, the inflation peak during the Carter Administration reached a maximum of 14.5%, according to the Fed’s original accounting methods. Those methods were still being employed during President Carter’s term. 

Most Americans have directly felt and understood this impact at the grocery store, gas station, or any consumer goods market. All you have to do is compare today’s pricing to one year ago, and you will see the actual inflation rate in the U.S.

For example:

  • 1 lb uncooked long grain rice, May 2021: $0.801; May 2022: $.909. Increase: 13.5%
  • 1 lb bacon: May 2021: $6.35; May 2022: $7.36. Increase: 16.0%
  • Dozen eggs, grade A, May 2021: $1.63; May 2022: $2.86. Increase: 76.2%
  • Gallon of whole milk, May 2021: $3.50; May 2022: $4.20. Increase: 20.2%
  • 1 lb of coffee, ground roast, May 2021: $4.57; May 2022: $5.84. Increase 27.8%
  • 1 lb propane, May 2021: $2.85; May 2022: $5.97. Increase: 111.4%
  • Electricity (per kwh), May 2021: $.14; May 2022: $1.54. Increase: 10%
  • Median home sale price, March 2020: $272,929; March 2022: $373,734. Increase: 26%

If you examine only these numbers, you get an average year-over-year increase of about 37.6%.

There appears to be no end in sight to the soaring rate of inflation in the U.S. Should Biden issue another stimulus package or the Fed continues to suppress interest rates, the nation will feel an even more oppressive sense of inflation. 

Sadly, the poorest of the American citizens feel this inflationary pain the most. 

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