Exposed! The Hidden Inflation Eating Your Money

Do you feel like no matter how hard you work, it’s harder and harder to get ahead?

There’s a good explanation for that. And it’s maddening.

The government intentionally & dramatically underreports the true cost of living, and that fake low number is what most employers use when they set the wages they pay.

So your paycheck isn’t growing nearly as fast as it needs to in order to stay ahead of inflation.

Ed Butowsky created the Chapwood Index to calculate and track a more realistic measurement of the true cost of living that American’s experience “in the real world”, as an alternative to the laughably phony Consumer Price Index (CPI) published by the US government’s Bureau of Labor and Statistics.

Butowsky’s weighted index is based on the 500 most used items by Americans, including taxes, energy and food – which are not included in the official CPI. It also calculates the cost of living regionally, revealing the reality on the ground for those living in/near the 50 largest metro regions in the US.

The average annual cost of living increase calculated by the Chapwood Index is around 10%. For comparison, the CPI claims it has increased less than 2% per year for the past decade. That’s over 5x less.

Which number more accurately reflects the reality you’ve seen in your own household expenses? If you buy groceries, go to the doctor’s, need a roof over your head, drive a car or have children to support and educate – odds are high the Chapwood Index does.

This intentional deception between what we’re told (and what our paychecks are based on) and what we actually experience goes a long way in explaining why the middle class is fast disappearing. And why we’ve transitioned from a nation where a single income earner could support a family, to one where not only do both spouses now need to work to support the family, but they both need multiple jobs to do it.

And looking ahead, Ed only sees the cost of living getting worse.

Which is why he agrees that now, more than ever, is the time to partner with a financial advisor who understands the nature of the risks and opportunities in play, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate:

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical resilience preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.


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I agree and it’s probably even higher than that. Economist, John Williams says it’s probably around 14% inflation. What’s even worse is “product shrinkage”. You are paying slightly more at checkout but you are getting a lot less. In my home state, Tropicana OJ used to be in 64oz cartons. Now they’re in 52oz cartons and you are asked to pay a lot more for the same product. That’s just one example.

Bitcoin is a hard currency that cannot be printed. Though there are risks, erosion through inflation is not one of them.
PMs, land (woodlands or productive farm land), a house are others.

SP: PMs, land (woodlands or productive farm land), a house are others.
Agreed. If “risk” is what a man is trying to eliminate, BTC must be the worst selection ever (besides the USD :-)).
Although real estate or land can be dangerous as well, since it cannot be hidden and already taxed to support government and rates can change overnight.
To my mind, the only long-term storing of value that makes sense is gold bullion: small, universal, fungible, thousands year track record, easy to hide and trade privately. BTC and other crypto is an excellent speculation for potential gains. But who knows what the future will hold, both legally or popular opinion. Likely a wild ride.

We can all benefit from his observations. Thanks Adam and Chris

Is through diversification. There is no single asset that is risk free. There are so many variables that there is really no way to predict how things will go and position yourself for every possibility. Sandpuppy is probably right to include bitcoin to mitigate risk.
We know that while somethings go up…stocks, bonds, real estate etc…other things go down…interest rates, dollar value, etc.
If you are concerned with risk you should balance your portfolio with equal weight on both sides. This used to be called the “barbell strategy”. Of course if you are equally weighted the best you can do is maintain wealth. You have to take a risk one way or the other to have a gain.
Ill admit Ive been too conservative with my investments and its cost me gains, but it reflects my over-all “macro-pessimism” as concerns our current state of affairs.

There is an easy way to calculate the rate of inflation using government sources, take the % change in say broad money (m3) and then subtract the increase in GDP for that period, and it shows the actual % change in money chasing the same amount of goods.
Counting the repo injections into the market, the inflation rate should be about 22% for 2020 for the $USD.
It’s not perfect, but it’s very easy to do. This method measures the causes of, not the flow of effects of inflation, so it’s much faster, there is no lag time in terms of seeing the impacts.
It also includes everything, the master resource for inflation is money, and this is directly measuring the master resource, without any adjustments for hedonics or substiutions.
I could be wrong on this, it’s been 20 years since I studied economics, and even then I was not the best student. Check my work.

On the page linked here the further links on that page go to a wrong address:

This index is fake news. Implausible on its face, without any explanation of methodology, and not believed by any credible source.

I started logging fuel prices, grocery items and other things like that a few months ago. It is eye opening.

Very insightful - Thanks.
Amazing how his observations apply to today’s current events in the US, despite he wrote in 120 years ago.

About January 5th, I took note of pasta ($1/lb), tuna packets ($1) and dishwasher pods 25 cents. I’m just watching those three and yep they are creeping up. You can still get pasta at $1 but there are fewer options at that price or you need a sale.
And gas, but I think most people keep tabs on that.

I love this article, the content is really intense and slapping the truth about our economic situation. Keep us updating.
Cj | overland park junk removal companies are intense from caring for our customers.

who cares?
Stephanie Kelton is excited!
episode 119

Just buy GME shares my dudes. I cashed out 10% of my holdings and put up bins ipswich

What an eye opener! I love how positive this post is!
Reliant Pools

Great blog !! You should start many more. I love all the info provided. I will stay tuned.

This method measures the causes of, not the flow of effects of inflation, so it’s much faster, there is no lag time in terms of seeing the impacts.
-Madison with Tile Flooring