The federal government – actually, the Bureau of Labor Statistics (BLS) – just announced that the inflation rate for the year ending July 2012 was 1.4% Most of us had to rub our eyes in disbelief when we saw this number; have these people not entered a supermarket recently? How could they possibly release such a figure with prices skyrocketing all over? Which brings us to Ed Butowsky, who has had enough of what he believes are misleading numbers and has decided to do something about it.
Butowsky, who runs Chapwood Investments, got peeved about what he believes are intentionally understated government inflation calculations, and how they affect not only his investors, but seniors who receive retirement benefits. He decided to look around to see if anyone else shared his suspicions, and came upon research conducted by John Williams – not the Stars Wars composer – whose work can be found at www.shadowstats.com. Mr. Williams sells a newsletter that contains his calculations of the real inflation numbers. The pitch on his website states “Have you ever wondered why the CPI, GDP, and employment numbers run counter to your personal and business experiences? The problem lies in biased and often-manipulated government reporting.