Busted: Bankers and The Global Economy

May 12, 2011

Dangerous Inflation is on the Way

Filed under: economy, inflation, recession, stagflation — Tags: , , , — digitaleconomy @ 12:01 pm

I’ve written about false inflation figures for years. The U.S. government continues to pretend that Americans won’t be facing dangerous inflation by 2012. The facts show otherwise.

The Producer Price Index (PPI) increased 0.7% last month. This equates to 8.4% annual wholesale inflation in America! Prices are rising much faster than wages by any means.  April wholesale inflation data reflects an ever-accelerating cost of living in 2011.

Can official government statistics be trusted? Not according to John Williams at Shadowstats.com, whose alternative inflation index shows costs rising four times higher than “official” rates. Since 1980, the Bureau of Labor Statistics (BLS) has changed the way it calculates the Consumer Price Index (CPI) in order to account for the substitution of products, improvements in quality and other things.

“Near-term circumstances generally have continued to deteriorate,” says Williams. “Though not yet commonly recognized, there is both an intensifying double-dip recession and a rapidly escalating inflation problem.”

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