Friday, January 1, 2010

Shadow Stats and real inflation numbers



New Year's day...eh...a somewhat bland holiday wherein I expect many are nursing hangovers at home and abroad, watch it lass, that is a bad place to have frost bite.


I find Shadowstats a great counterpoint to the "official" inflation numbers, .Gov has every reason to underreport actual inflation whilst proclaiming the recession as being "over", which is not quite the case to be sure, if anything we are seeing demographic specific effects of inflation. 

"Demographic inflation"?

Think of it this way, with the offical inflationary stats excluding food and fuel and the cost of increased laws and regulations, inflation hits some demographics of the economy much harder than others. 

A small business owner who now has to pay a slew of additional costs for emission controls, increased minimum wage taxes in the form of FICA and SS and Medicare, is hit much harder than say a Doctor's office who does not face the effects of that particular brand of .Gov inspired inflation.








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