Economic Experts Says True Inflation Is Three Times Higher
April 29, 2010 by Special To Personal Liberty
Despite the Federal Reserve’s pronouncements that inflation is under control and holding steady at just above 2 percent, some experts believe the true figure is much higher than that.
According to Jeffrey Nichols—senior economic advisor to Rosland Capital, a California-based precious metal asset firm—the consumer price index , which is the government’s main inflation indicator, is flawed and causes the actual inflation to be significantly underreported.
In his view, the true level of general price increases is between 6 percent and 7 percent.
"Recent statistics paint a rosy picture of the United States economy emerging from recession with inflation subdued," Nichols said.
However, he added that "anyone who does grocery shopping, pays the utility bills, writes a tuition check for their child’s education, uses public transportation or flies across the country knows the truth about inflation."
Nichols also said that although the price of gold fell last week after the news that the investment bank Goldman Sachs had been charged with securities fraud by the Securities and Exchange Commission, "prices in the $1,130 to $1,140 range are certainly attractive entry points for long-term investors."