Comment: "Calculating inflation

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"Calculating inflation

"Calculating inflation according to the OLD standard (prior to 1980), prior to removing "items that make the government look bad", clearly shows a 12% increase in 2011."

First of all, shadow stats is utter bunk. All they do is add a pre-determine value to every CPI-derived value. Literally. Why do you think the grahpos can practically be laid on top of each other?

And it isn't the items that make the government look bad. It is using advanced statistical modeling to adjust for standard of living.

Here, look at the Billion Prices Project at MIT:

That number matches closely with the CPI number.

"So, despite the fact that you call 10% insane, it's exactly the way it was calculated until 1980, and then changed again in 1990 in an effort to further minimize the appearance of inflation until we now have a "mild inflation" every year according to the numbers regardless of actual cost of living."

Again, shadowstats doesn't even bother calculating the number for each year. They just add a value to the CPI-calculated value and churn something out:

Literally, here is what Shadowstats does: "I’m not going back and recalculating the CPI. All I’m doing is going back to the government’s estimates of what the effect would be and using that as an ad factor to the reported statistics.”"

"My metals approach, I find interesting and has won more than a few converts as they go through the process themselves (including a mathematician friend of mine) but I did not use it for this article."

Good for the mathematician. Again, it doesn't make any sense. The correlation is too weak; there are too many outliers. After all, gold and silver are not legally tied to the dollar

Plan for eliminating the national debt in 10-20 years:


Specific cuts; defense spending: