Very good site. I have been reading you for years now.
In regard to your recent post on inflation in the US – if you have not already done so, you should visit the site “Shadow Government Statistics”. It is very enlightening on how the numbers are manipulated.
Thanks Tommy, shadowstats.com is a good website to have a better idea of what real inflation, unemployment and other statistics would look like.
One of the dirty little secrets behind the seemingly rock solid data used by governments is that the criteria used can vastly change results. The way they do it today is... lets just say (lie is such an ugly word) more "convenient" than the method used just a few years ago.
For example, today an American that hasn’t worked for the last year and isn’t actively looking for work is not considered unemployed. Same goes for part time workers that are actively looking for full time jobs, they aren’t considered unemployed either even if what they earn with their part time job isn’t enough to make it till the end of the month.
We have Alan Greenspan (Chairman of the Fed. Reserve from 1987 to 2006) to thank for some of the most controversial changes in which data is crunched, such as the use of “hedonic regression” in computing its CPI so as to hide true inflation.
All data should be taken with a huge grain of salt no matter how reputable the institution that came up with may be. It is usually things like accumulated rumor and word on the street that are truly a better indicator of what is really going on.
It is very interesting to see how using pre 1990 and pre 1980 methodology, inflation almost is almost ten times the official rate and unemployment is almost five times the official rate.
Check the Shadowstats below: