John Williams is from Shadowstats.com. These economic observers have been keeping track of inflation the old way before the Federal Reserve started changing their calculation around so that inflation seemed less severe to the public public. The Federal Reserve does not calculate food or fuel prices when calculating inflation as it did in the past because of “large fluctuations” in those markets. Conveniently, these are some of the major purchases by poor and middle class families from month to month. In addition, the Federal Reserve today uses owner “equivalent rent” for housing, a system where they ignore the list price and instead give their own price. For example, during the housing boom, home value was calculated by what kind of rent the home could receive, not the rising retail price of the house. Therefore, the housing boom was likely able to continue for a much longer period because the price inflation in the economy was not picked up by the statistics the were published by the government.
Needless to say, the people from Shadowstats have been studying Federal Reserve monetary policy and it real affects on the economy for a long time. I would take them seriously.