patrick.net

"If we calculate the inflation rate the exact same way the government did prior to 1990, the inflation rate is averaging around 6.5%, which is basically double the official rate. However, if we measure inflation the same way the government did back prior to 1980, the inflation rate clocks in at a mind-numbing 11%."

puhim says

If we calculate the inflation rate the exact same way the government did prior to 1990, the inflation rate is averaging around 6.5%, which is basically double the official rate. However, if we measure inflation the same way the government did back prior to 1980, the inflation rate clocks in at a mind-numbing 11%."

And that should be reason enough to realize that the calculation changes were needed. Because anyone who believes that inflation is currently running at 11% is an idiot.

1 year ago

"It appears that this situation may already be taking place with some major U.S. creditors. The Chinese have dumped over $100 billion worth of U.S. treasuries in the month of December, which is a continuation of a trend that has been going on since April of 2011. Chinese holdings of U.S. treasuries are down $300 billion since April of 2011.

This creates a dangerous situation for inflation. If enough governments dump U.S. treasuries because they fear the U.S. is insolvent, the interest rates will skyrocket unless the Fed prints the money to buy those bonds. However, if the Fed buys the bonds, domestic inflation rates will skyrocket."

http://www.reuters.com/article/2013/06/14/us-usa-economy-capital-idUSBRE95D0N420130614

Foreigners flee from U.S. government bonds in April: Treasury

http://cnsnews.com/news/article/china-has-divested-97-percent-its-holdings-us-treasury-billshttp://cnsnews.com/news/article/china-has-divested-97-percent-its-holdings-us-treasury-bills

China Has Divested 97 Percent of Its Holdings in U.S. Treasury Bills