Jason Burack on Inflation Reality: CPI vs ShadowStats & Chapwood Inflation Index

Wall St. For Main St., Released on 9/19/20

The Fed wants inflation to run hot and well above its old 2% inflation target on the Consumer Price Index (CPI). In some Fed projections, the Fed is already projecting a 3.9% CPI inflation rate by Q3 2021. However, the CPI does not reflect everyday reality for food, healthcare and other daily bills of most Americans. The inflation formulas from ShadowStats (using old government inflation formulas from 1980 and 1990 that were far more honest) and the Chapwood Inflation Index do.

ShadowStats Inflation Tracking: http://www.shadowstats.com/alternate_…
Chapwood Inflation Index (new update): https://chapwoodindex.com/

Ed Butowsky’s motivation to create the Chapwood Index came from a desire to help people rescue their finances from fixed-income despair after the passing of his mother. Ed’s mother was divorced, and because of the CPI, her alimony payments were under-adjusted. They failed to reflect her actual cost of living percentage increase year in and year out. Slowly, her ability to make ends meet deteriorated, and she was forced to take a job at Saks Fifth Avenue in order to afford birthday gifts for her grandchildren and other necessities. When Ed’s mother was diagnosed with cancer, she suffered through agonizing rounds of chemotherapy and continued working at Saks because she had no other way to meet her financial needs. How did Butowsky’s mother end up like this? She fell victim to a fixed income based on the flawed CPI that failed to accurately reflect inflation.

Learn about the Cantillon Effect on the Mises Institute website.

Money, Inflation, and Business Cycles: The Cantillon Effect and the Economy: https://mises.org/library/money-infla…

Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason’s work at his blog website at www.jasonburack.com.

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