Inflation - what is real?
Many of you might not have been alive during the 1970's, I was very young but recall the tremendous pain Inflation caused to our family and I am certain to others. If you recall Mr. Peanut, no not the copyrighted brand, the dude, the paper suit, he played weak hands not just on the economy but on Foreign Relations. Yeah that's him!
Some of the top of mind issues from the '70's were shortage of gasoline, and out of control food prices!
Back to reality, The Fed's "Base-Effect" Inflation Argument Is Nonsense
Talks in vague language to make you stop and question - WTH, just a distraction to waste more of your time.
Transitive - there is no context cuz they don't know the timeline (is that 1, 5, 10 or 20 years)? Context is critical! You think one of today's Fed players would have the stones to raise rates even 2%, please, the house of cards would come crumbling down and quickly!
Fluffery such as Fed’s Williams says inflation to top 2% for rest of the year but decline after economy is recovered! We are supposed to believe this? They can just turn inflation on/off like a faucet? Really, if that was the case then they would have done it in Japan 30 years ago, instead everything is covered in cement to try and drive growth. What happened to the law of procession and lag? Guess they think that went extinct?
Supply chain bottlenecks and shortages have direct impact to Inflation and your purchasing power!
Let's review their old tools Measurement
CPI (Consume Price Inflation) which fails to report food and fuel costs - really how long can you go without eating? Only 3 weeks prior to major health and death issues settling in.
PPI (Producer Price Index) - manipulated values across the board to show what they need it to show too.
New Manipulation tools - YCC (Yield Curve Control), QE, blah, blah, blah
Shrinkflation - a game of shrinking packaging but with a slightly higher price. Example - smaller can of tuna (3.25oz vs 3.5oz), can be played in all sorts of manners.
The Fed Cheats To Avoid Getting An 'F' On The Economy
How do I know this? This alarming fact 34% of household income in America is coming from the government.
Real US Inflation values are below - can't thank the Important News Web site for these awesome details. Nothing to see here, moving along
- Lumber: +265%
- WTI Crude: +210%
- Gasoline: +182%
- Brent Crude +163%
- Heating Oil: +107%
- Corn: +84%
- Copper: +83%
- Soybeans: +72%
- Silver: +65%
- Sugar: +59%
- Cotton: +54%
- Platinum: +52%
- Natural Gas: +43%
- Palladium: +32%
- Wheat: +19%
- Coffee: +13%
- Gold: +3%
Shortages of other key products are starting to cause very serious problems in a 'recovering economy too'. How long before everyone figures out this game is a renaming game and then the gig is up!
Summary
Good thing there is no inflation, with all this unemployment, we would hate to see people not eating. Wasn't one of the first excuses for the Arab spring was high food prices? Oh well, that got buried quickly just like, what difference does it make? We are not vassals, demand sound money! Those that control the game write the rules! Check out the snippet below, again context is so critical!
Sources
http://themostimportantnews.com/archives/and-the-federal-reserve-is-trying-to-convince-us-that-inflation-isnt-a-problem
