A fascinating, recent report by the Devonshire Research Group, whose recent work on Tesla was featured here one year ago, has moved beyond the micro and tackled on of the most controversial macroeconomic topic possible: what is the true rate of inflation. What it finds is that, like others before it most notably Shadowstats and Chapwood, the accepted definition of inflation, or CPI, is dramatically understated for various reasons, both political and economic.
Needless to say, if and to the extent that the Contrarians are correct, the implications for the U.S. economy and for investors are profound
The Standard of Living may be far more difficult for many Americans to maintain than published statistics suggest
Real Economic Growth may be flatter or actually negative, suggesting a prolonged 21st century recession, not recovery
Real Interest Rates, already seen at historic lows, may be strongly negative making Fixed Income returns unattractive
The Cost of Capital most commonly used to measure investment returns may be far too low
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http://www.zerohedge.com/news/2017-05-0 ... y-reported
What are your thoughts on this? I can see some major incentives to spin the level of inflation down, but at the same time given the number of economic commentators and academics could they really get away with such a discrepancy?