United States (and elsewhere): Understated Inflation Statistics?

By: Ian Campbell | Tue, Jan 29, 2013
Print Email

A recent article discusses the issue of whether reported inflation (and other reported statistics including economic growth, and unemployment rates) in the United States (and with reference to the United Kingdom) hold any semblance of reasonableness. The author suggests that

The author concludes that for the United States:

In the end, the author says that had U.S. inflation been properly reported, that U.S. wage rates would have been higher than they have been, and that indexed pensions would pay out more than they do.

This, of course, leads to the obvious conclusion that if indeed U.S. actual inflation has been materially higher than reported, that has resulted in but one more form of 'failure to act' by the U.S. Federal Government over many years as it may well have been misled by its own inflation statistics - in turn resulting in postponement of 'economic problem solving'.

It also lends support to the view that eventually postponement catches up with those who postpone - which it increasingly appears from an economic point of view that all of us who live in the developed countries have been 'postponers' to a greater or lesser degree.

I suggest you take the time to read The High Price of Understated Inflation, and give serious thought to what its author says.

Topical Reference: The High Price of Understated Inflation, from ZeroHedge, January 23, 2013 - reading time 4 minutes.



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Economic Straight Talk

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

The full version of The Economic Straight Talk Newsletter is published each trading day. To get your Free 14-day trial subscription, visit economicstraighttalk.com. No obligation or credit card required.

Informed Investors are Successful Investors

Comments and opinions expressed in these commentaries are those of the authors. They do not constitute individualized investment advice, are provided "as is", may change without prior notice, and are used at your own risk. The information and content provided or referenced may be incomplete, inexact, or incorrect. Your use of these commentaries is subject to the Economic Straight Talk Terms of Use and Legal Disclaimer

Copyright © 2011-2013, Stock Research DD Inc., all rights reserved

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com