Biden’s Federal Reserve has created an economic disaster, with inflation now “officially” over 9%.
But the Federal Reserve was just exposed for trying to hide the true number.
And it’s all because the real inflation rate is much, much worse.
The official Consumer Price Index for the Second Quarter of 2022 showed that the inflation rate in the United States currently stands at around 9.1%.
The stunning report showed that inflation had risen far greater than what had been previously expected.
But the real inflation rate that the United States is currently experiencing is nearly double what the American people are being told.
And the people responsible do not want the general public to know why.
And the reasons behind this are intentionally complicated in order to make it harder for the American people to figure out the mathematical games that the Federal Reserve continues to play.
As it currently stands, the Bureau of Labor Statistics tracks the price of a basket of goods and services that is intended to represent average American consumer patterns.
This creates what’s called the Consumer Price Index, which is the figure the general public sees in news headlines whenever inflation is cited as being first 5%, then 7%, then 8%, and now finally 9.1%.
But the problem is that the Consumer Price Index is not actually tracking the real inflation rate.
That because originally, the CPI was meant to track the cost of keeping a person’s current standard of living. This was done using a simple “basket of goods” approach to see how much Americans were spending on things like groceries, housing, and transportation.
But starting in the 1980s, the Fed began to change the way it calculated inflation.
And they did it by no longer measuring a constant “basket of goods”, but rather using what’s known as “substitution.”
This meant that when calculating inflation, the Federal Government began to assume that consumers will substitute away from one brand or type of item – such as a steak or a car – once that brand or type becomes relatively more expensive compared with other brands or types of a similar product.
The result has thrown off the real inflation rate for around 40 years, because as prices rise over time for certain goods faster than others, the Federal government just assumes that people naturally switch to buying cheaper, poorer goods of the same type.
After the latest CPI report was published in July showing the official inflation rate stood at 9.1%, some economists backtracked the numbers using the old metrics and calculated that the real inflation rate stands at around 18%, meaning that inflation is nearly twice as bad as Biden’s administration is admitting it is.
And the reason the Federal government is hiding the true inflation rate is because Congress and the Federal Reserve want to hide their own culpability in the economic catastrophe that’s being created.
That’s because as long as inflation appears to be much lower, most people won’t notice it.
It’s only when the general public looks back over several generations that people can see just how little their money takes them, compared to how far it took their parents or grandparents.
It was only after the Federal Reserve printed around $5 trillion between 2020 and 2021 that inflation began to run wildly out of control.
And now, Biden’s Federal Reserve is doing everything in its power to cover up the true cause of the disaster: themselves.