commodity boom no bubble just starting, page-14

If the CPI is running at 12%, then inflation is riddled into the system. However, if the populance can be made to believe it is 4%, then leap frogging of prices is unlikely. In any event, the cost of production is going up, maybe excluding labour.

"The US unemployment rate is creeping up, and according to John Williams, the official unemployment rate greatly understates the real rate of unemployment. Williams has followed the changes that government has made to the official indices over the years in order to spin a more politically palatable picture. Williams uses the original methodology prior to the decades of spin. The original way of measuring unemployment indicates the current rate of unemployment in the US to be 13%, much higher than the 5.1% official number.

Williams also calculates the CPI according to the same way it was officially calculated prior to the recent decades of spin. Williams estimates the current CPI at 12%, three times higher than the official 4% figure. "



http://vdare.com/roberts/080408_economy.htm