Inflation Actually Near 10% Using Older Measure

The public is slowly recognizing the hidden inflation that capital markets and shadowstats.com already recognize. The conclusion that standard of livings will continue to drop in the years to come as a result of the debt crisis will gain increasing acceptance within the private and possibly public sector. Don't count on quick recognition from the latter.

After former Federal Reserve Chairman Paul Volcker was appointed in 1979, the consumer price index surged into the double digits, causing the now revered Fed Chief to double the benchmark interest rate in order to break the back of inflation. Using the methodology in place at that time puts the CPI back near those levels.

Inflation, using the reporting methodologies in place before 1980, hit an annual rate of 9.6 percent in February, according to the Shadow Government Statistics newsletter.

Source: cnbc.com