If you plug in real inflation then GDP was 8.9% lower in 2014
Just look at how we fix inflation:
Chapwood Index shows real inflation in US.
In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
The Chapwood Index reflects the true cost-of-living increase in America. Updated and released twice a year, it reports the unadjusted actual cost and price fluctuation of the top 500 items on which Americans spend their after-tax dollars in the 50 largest cities in the nation.
Let's use a Zero Coupon Bond Calculator to see the effect of fake inflation on a $1000 bond for 30 years:
A zero coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity
With Fed's 0.8% fake inflation, Zero Coupon Bond Value = $787.38
With Chapwood inflation of 9.7%, Zero Coupon Bond Value = $62.20
So with Fed's inflation assumption, you can borrow $787.38 for 30 years and pay $212.62 as interest
With Chapwood inflation, you borrow $62.20 for 30 years and pay $937.80 as interest
With Chapwood Index, if you borrow $787.38 for 30 years, you pay $11,871 as interest. Or 55.83 times that with the Fed's inflation adjustment.
http://www.zerohedge.com/news/2015-07-20/us-retail-sales-fall-again-next-crash-near
