When the truth gets out, there will be machine guns in the streets, and 50 foot stacks of bodies...
Business Insider a week or two ago reported that official inflation has been about 1% less than real inflation for 20 years, which would explain the middle class “malaise”.
It assumed meat prices go up, you buy cheaper meat. Energy prices go up, you conserve more. In essence, 2% inflation figures assume decreased consumption/quality. Assume same consumption/quality, and prices are 3%.
And a 1% increase in prices while wages have been flat (after inflation) for 20 years is a 20% DECREASE in standard of living. But unlike the 15% annual inflation of Carter’s era, it is a slow squeeze that drags on morale as you make small changes to get by.
JOHN MAULDIN: The government has been dramatically understating inflation
http://www.businessinsider.com/john-mauldin-government-understating-inflation-2016-5