Fed Lying About Inflation: 8% Rate According to 1980 Calculation

Zerohedge reports on central bank lying about inflation:

According to Bernanke, inflation in the U.S. is now "too low". The official inflation rate is currently sitting at about 1 percent, and Bernanke insists that such a low rate of inflation is not good for the economy. He would prefer that the rate of inflation be up around 2 percent, and he is hoping that more "monetary accommodation" will help push inflation up and the unemployment rate down. But what Bernanke will never admit is that the official inflation rate is a total sham. The way that inflation is calculated has changed more than 20 times since 1978, and each time it has been changed the goal has been to make it appear to be lower than it actually is. If the rate of inflation was still calculated the way that it was back in 1980, it would be about 8 percent right now and everyone would be screaming about the fact that inflation is way too high. But instead, Bernanke can get away with claiming that inflation is "too low" because the official government numbers back him up.

Inflation: the silent tax.