Sep 18

- Got (Record-High-Priced) Milk? (ZeroHedge, Sep 17, 2014):

Hot on the heels of yesterday’s low PPI and this morning’s falling CPI, we thought it worth noting (given The Fed’s pre-occupation that inflation is running too low) that the price of milk – that staple of the American diet – just hit an all-time high. Nope, no inflation here… Continue reading »

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Sep 06

Chapter 11 – Inflation from Peak Prosperity on Vimeo.

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Aug 26

- The New Misery Index (Of Two Minds, Aug 25, 2014):

The Status Quo is desperate to mask the declining fortunes of those who earn income from work, and the Misery Index 2.0 strips away the phony facade of bogus unemployment and inflation numbers.

The classic Misery Index is the sum of unemployment and inflation, though later variations have added interest rates and the relative shortfall or surplus of GDP growth.
Since the Status Quo figured out how to game unemployment and inflation to the point that these metrics are meaningless except as a meta-measure of centralized perception management, the Misery Index has lost its meaning as well.

I propose a Misery Index 2.0 of four less easily manipulated (and therefore more meaningful) metrics: Continue reading »

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Jul 26

- Food Inflation Watch: California Farmers’ Water Costs Surge 700% After Government Cuts Supply (ZeroHedge, July 24, 2014):

When we reported on the government’s decisiosn to withhold irrigation water to California for the first time in 54 years, we warned there would be consequences: farmers are hit hardest as “they’re all on pins and needles trying to figure out how they’re going to get through this.” Fields will go unplanted (supply lower mean food prices higher), or farmers will pay top dollar for water that’s on the market (and those costs can only be passed on via higher food prices). Sure enough, as Bloomberg reports, farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.

As Bloomberg Briefs’ Alison Vekshin reports, Continue reading »

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Jul 26

Quantitative easing at work.


- Japanese Inflation Holds Near 23 Year Highs As Food, Energy, & TV Costs Soar (ZeroHedge, July 24, 2014):

Japanese CPI printed 3.6% in June, modestly down from May’s 3.7% YoY, but hotter than the expected 3.5% YoY analysts predicted. If you don’t eat food or use energy then inflation merely bit 2.3% of your income this year but if you did then you may have noticed that energy costs are 9.1% higher YoY, TVs +8.0%, and Food +4.1% (both showing no signs of making Japan’s Misery Index any less, well, miserable). PPI also printed at 3.6% (23 year highs). So when the Japanese politicians say “Abenomics is well on its way to achieving its goals…” they must mean ‘of lowering living standards for all Japanese people’.

20140724_cpi_0

Charts: Bloomberg

 

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Jul 19

- Where The Real Inflation Is (ZeroHedge, July 18, 2014):

Despite being dismissed as “noise”, inflation is here and it’s rising. As the following chart shows, if you eat, drive, use electricity, or live in a house, you are paying dramatically more this year than you did last year. On the bright side, if you wear clothes or use electronics, prices have dropped (but remember deflation is bad…). How much longer can the Fed pull the wool over the eyes of the people?

20140717_inflation

Chart: Goldman Sachs

 

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Jul 18

- If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks (Economic Collapse, July 16, 2014):

The basic necessities in life just keep getting more expensive.  On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent.  That is particularly distressing to me, because I am known to love chocolate.  But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay.  Last month, it was coffee.  J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent.  And Starbucks has announced a bunch of price increases across the board on their coffee products.  Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive.  If this keeps up, could we eventually see armed guards in grocery stores and on food trucks? Continue reading »

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Jul 06

- Foodflation – Since QE3, Breakfast Is Up Over 24% (ZeroHedge, July 6, 2014):

Having pointed out the ‘surges’ in the cost of your 4th of July burger at the behest of Greenspan and Bernanke, we thought a reflection on the soaring costs of ‘the most important meal of the day’ were in order. As the following chart illustrates in words and pictures even a PhD Fed economist or CNBC pretend-economist could understand – food-flation is here from breakfast through dinner (no matter how many iPads we try and eat).

foodflation

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Jun 28

200 years ago our farmland had 50 cm of topsoil, now there are only 15 cm left.

And we are are losing about every 16 years another 2,5 cm.

The Hunzas needed to try our soil killing fertilizer only once to figure out that the promises they’ve been given about our chemical fertilizers were BS and that chemical fertilizers are in fact harmful for the soil.

(As a side note the Hunzas do NOT know hypertension, cancer arthritis, diabetes, tuberculosis, asthma, karies, presbyopia etc.)

We will have to (re-)learn to grow our food biologically or there will be no food at all.

Soil erosion also played probably an important role in the decline and collapse of the Egyptian and Greek empires.


- U.S. food prices rising 367% faster than inflation; chemical agriculture headed for catastrophic failure (Natural News, June 17, 2014):

Food prices are now skyrocketing across the USA, says the Bureau of Labor Statistics (BLS). Their most recent report (1) reveals that prices of meat, poultry, fish and eggs leaped 7.7 percent over the last year. That’s nearly 367% higher than the official 2.1% inflation rate claimed by the federal government. (2)

Prices on these food items have risen 664% in the last five decades, according to the BLS, but much of the price acceleration has happened in just the last few years… and there’s no end in sight. Continue reading »

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Jun 21

Quantitative easing =  printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
- Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
- Ron Paul


weimar-hyperinflation

- Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else (Economic Collapse, June 19, 2014):

Have you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.  In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about…

And it is really hard to get too upset with Janet Yellen. Continue reading »

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Jun 12

hundred-dollar-bills

- U.S. Food Inflation Running at 22% (Breitbart, May 26, 2014):

After five years of the federal government telling the public that despite a $3.5 trillion increase in monetary expansion, the inflation rate is below +2%, the Department of Agriculture (DOA) just warned the American public that the consumer price index for food is up by 10% this year.

The DOA tried to blame food inflation on the drought conditions in California, but last year’s drought was worse and food prices fell by -6%. The real problem is Federal Reserve monetary stimulus is stimulating inflation. I reported in “Food Price Inflation Scares the Fed” two months ago that commodity food costs were exploding on the upside. Given the lag in commodity costs impacting prices on grocery store shelves, annual U.S. food inflation is now running at +22% and rising. Continue reading »

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May 30

- Still Think the Fed Isn’t Fueling Inflation? Check Out This Chart (Washington’s Blog, May 30, 2014)

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May 23

Inflation-Ahead

- No inflation Friday: 42.4% increase in the price of being… poor? (Sovereign Man, May 23, 2014):

One of the most intellectually disingenuous statements made by western policymakers is that inflation is tame… nonexistent.

For example, the minutes released this week from the most recent Federal Reserve policy meeting said that the Fed saw NO inflation risk in ‘fueling job growth’ [i.e. printing money].

So by their own admission, the Fed thinks they can conjure hundreds of billions of dollars out of thin air without any consequences whatsoever. Zero risk.

Every time I hear something like this it just makes my skin crawl… and I always think, “go get on a plane.”

Inflation is out there in the rest of the world. To deny its existence is massively arrogant, insensitive, and just plain wrong. Continue reading »

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May 16

Related info:

- The Beginning Of The End Of Precious Metals Manipulation: The London Silver Fix Is Officially Dead:

The London Silver Market Fixing Limited (the ‘Company’) announces that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014.


- Report: Food Prices Skyrocket: “We’re Going to Have a Major Problem Coming Into the Fall” (SHFTplan, May 15, 2014):

While government statisticians claim robust growth, recent data points suggest otherwise. Consumers are quickly running out of money, home sales have collapsed and hit their biggest drop in three years, there are more Americans out of the labor force than ever before, and one third of adults under the age of 35 are living with their parents because they can no longer afford to pay their own mortgage.

By all accounts, the reality is that we are now factually in a recession, a point further emphasized by the recent revelation that American companies are experiencing near zero percent earnings growth. Continue reading »

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Apr 08

dollar-euro

- Meet ‘lowflation’: Deflation’s scary pal (RT, April 7, 2014):

Peter Schiff
By Peter Schiff

In recent years a good part of the monetary debate has become a simple war of words, with much of the conflict focused on the definition for the word “inflation.”

Whereas economists up until the 1960′s or 1970′s mostly defined inflation as an expansion of the money supply, the vast majority now see it as simply rising prices. Since then the “experts” have gone further and devised variations on the word “inflation” (such as “deflation,” “disinflation,” and “stagflation”). And while past central banking policy usually focused on “inflation fighting,” now bankers talk about “inflation ceilings” and more recently “inflation targets”. The latest front in this campaign came this week when Bloomberg News unveiled a brand new word: “lowflation” which it defines as a situation where prices are rising, but not fast enough to offer the economic benefits that are apparently delivered by higher inflation. Although the article was printed on April Fool’s Day, sadly I do not believe it was meant as a joke.

Continue reading »

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Mar 26

- The Real Inflation Fear – US Food Prices Are Up 19% In 2014 (ZeroHedge, March 26, 2014):

We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 – up a staggering 19%

food-inflation

h/t Bloomberg’s Chase van der Rhoer


And it will only get much, much worse.

And 2008 will seem like a walk in the park.

Flashback:

Quantitative easing =  printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
- Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
- Ron Paul

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Feb 18

The Consumer Price Index does (intentionally) not include food and energy.



YouTube

- Food prices soar as incomes stand still (CBS News, Feb 16, 2014):

NEW YORK – Writer Jen Singer, the mother of two teenage boys, wrestles with her grocery list every week to keep the household budget from getting away from her.

“I’d like the government to stop by my house, come food shopping with me and see where the real costs are,” she said.

The adage “An apple a day keeps the doctor away” is impossible thanks to apple prices, she said.

Continue reading »

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Jan 30

Related info:

- Obama Introduces MyRA: The ‘No Risk, Guaranteed Return’ Retirement Savings Bond


ira-confiscation

- IRA confiscation: it’s happening (Sovereign Man, Jan 29, 2014):

I have an old acquaintance named Sam who has a hell of a deal for you.

Sam is actually a pretty famous guy with a big reputation. Unfortunately he has been a bit down and out on his luck lately… but he’s trying to make a comeback. And Sam is prepared to float you a really great investment opportunity.

Here’s the deal he’s offering: you give Sam your hard-earned retirement savings. Sam will invest your funds, and pay you a rate of return.

Granted, the rate of return he’s promising doesn’t quite keep up with inflation. So you will be losing some money. But don’t dwell on that too much.

Continue reading »

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Jan 29

marc-faber1

- Marc Faber Warns “Insiders Are Selling Like Crazy… Short US Stocks, Buy Treasuries & Gold” (ZeroHedge, Jan 28, 2014):

Beginning by disavowing Mario Gabelli of any belief that rising stock prices help ‘most’ people (“Fed data suggests half the US population has seen a 40% drop in wealth since 2007“), Marc Faber discusses his increasingly imminent fears of the markets in this recent Barron’s interview.

Quoting Hussman as a caveat, “The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak. There’s no calling the top,” Faber warns there are a lot of questions about the quality of earnings (from buybacks to unfunded pensions) but “statistics show that company insiders are selling their shares like crazy.”

His first recommendation – short the Russell 2000, buy 10-year US Treasuries (“there will be no magnificent US recovery”), and miners and adds own physical gold because the old system will implode. Those who own paper assets are doomed.”

Continue reading »

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Jan 24

The U.S. Dollar Has Lost 97 Percent Of Its Value Against Stamps

- No inflation Friday: the dollar has lost 97% of its value against stamps (Sovereign Man, Jan 24, 2014):

One of the greatest lies of the modern financial system (and that’s really saying something) is about inflation.

The puppet masters who control the system have managed to convince people that deflation = bad, and inflation = necessary evil.

Perhaps the even bigger lie is that of the actual inflation statistics. They tell us that there’s no inflation… or minimal inflation.

Continue reading »

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Jan 23

- Peter Schiff Destroys The “Deflation Is An Ogre” Myth (ZeroHedge, Jan 22, 2014):

Submitted by Peter Schiff via Euro Pacific Capital,

Dedicated readers of The Wall Street Journal have recently been offered many dire warnings about a clear and present danger that is stalking the global economy. They are not referring to a possible looming stock or real estate bubble (which you can find more on in my latest newsletter). Nor are they talking about other usual suspects such as global warming, peak oil, the Arab Spring, sovereign defaults, the breakup of the euro, Miley Cyrus, a nuclear Iran, or Obamacare. Instead they are warning about the horror that could result from falling prices, otherwise known as deflation. Get the kids into the basement Mom… they just marked down Cheerios! Continue reading »

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Jan 14

One Hundred Trillion Dollars

- We Will Be Told Hyperinflation is Necessary, Proper, Patriotic, and Ethical (Ludwig von Mises Institute, Jan 13, 2014):

Hyperinflation leads to the complete breakdown in the demand for a currency, which means simply that no one wishes to hold it. Everyone wants to get rid of that kind of money as fast as possible. Prices, denominated in the hyper-inflated currency, suddenly and dramatically go through the roof. The most famous examples, although there are many others, are Germany in the early 1920s and Zimbabwe just a few years ago. German Reichsmarks and Zim dollars were printed in million and even trillion unit denominations.

Continue reading »

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Jan 03

- Four key lessons from 2013 (Sovereign Man, Jan 2, 2014):

1) Politicians believe there are no consequences for destroying our liberty…

Stimulus and response. That’s the easiest way of summing this up. When politicians steal, and there are no consequences, they’re going to keep stealing.

Cyprus proved this point handily. The government froze bank accounts for everyone in the country (of course, the big bosses got their money out in time). And yet, there was no violent revolution in the streets. People just accepted it.

Poland nationalized pensions. Argentina imposed severe capital controls. The French are taxing everything under the sun. The US government was caught red-handed spying on… everyone.

Continue reading »

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Dec 29

FYI.

Related info:

- 1 Million US Jobless To Lose Financial Aid



YouTube Added: Dec 27, 2013

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Dec 16

Flashback:

- Gold is a Crap Investment – Unless …

- Inflation, Hyperinflation and Real Estate (Price Collaps)


revolver
What the Fed is looking at.

- What If There’s A Recession in 2014? (Gonzalo Lira, Dec 16, 2013):

If policymakers were gunfighters, they’d be out of bullets: They have run out of effective policy tools to improve the economy.

So the question is simple: If there is a recession in 2014, and policymakers are out of bullets, how will it play out across the American economy?

Recently, Deutsche Bank’s Jim Reid very astutely pointed out that the current “expansion” of the U.S. economy is on its fifth year—the seventh longest in history.

We are due for a recession.

Continue reading »

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Dec 02

- Inflation Watch 2013; Price Of Christmas Surges 7.7% (ZeroHedge, Dec 2, 2013):

Over the past 30 years, the rise in the price of Christmas according to PNC’s annual 12-days-of-Christmas price index has matched the CPI at around 2.9% YoY. However, in recent years, the reality is considerably worse than the well-managed inflation data the government profers. The price of Christmas in 2013 is up a stunning 7.7% over 2012 – the biggest jump since 2010′ 9.2% rise. The biggest driver of the increase were the dancing ladies (must be the minimum wage decree?) though 8 items saw modest increases also. Once again, it seems the government’s benign inflation data is fictionalized by reality’s rising price of everything.

Continue reading »

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Nov 30

- Inflation, Shortages, and Social Democracy in Venezuela (Ludwig von Mises Institute, Nov 29, 2013):

The economic turmoil in Venezuela has received increasing international media attention over the past few months. In September, the toilet paper shortage (which followed food shortages and electricity blackouts) resulted in the “temporary occupation” of the Paper Manufacturing Company, as armed troops were sent to ensure the “fair distribution” of available stocks. Similar action occurred a few days ago against electronics stores: President Nicolás Maduro accused electronics vendors of price-gouging, and jailed them with the warning that “this is just the start of what I’m going to do to protect the Venezuelan people.”

Earlier this month, in another attempt to ensure “happiness for all people,” Maduro began to hand out Christmas bonuses, in preparation for the coming elections in December. But political campaigning is not the only reason for the government’s open-handedness. The annual inflation rate in Venezuela has been rapidly rising in recent months, and has now reached a staggering 54 percent (not accounting for possible under-estimations). Although not yet officially in hyperinflation, monetary expansion is pushing Venezuela toward the brink.

In such an environment, paychecks need to be distributed quickly, before prices have time to rise; hence, early bonuses. This kind of policy is nothing new in economic history: Venezuela’s hyperinflationary episode is unfolding in much the same way Germany’s did nearly a century ago.

Continue reading »

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Nov 25

- Inflation is Raging – If You Know Where to Look (Dollar Collapse Blog, Nov 24, 2013):

Most people – certainly most governments and economists – define inflation as a general rise in prices. But this is wrong. Inflation is an increase in the money supply, of which a rising general price level is just one possible result – and not the most common one.

More often, excessive money creation shows up as asset bubbles, where the new money, instead of flowing equally to all the products that are for sale at a given time, flow disproportionately into the ‘hottest’ asset classes. Readers who were paying attention in the 1990s might recall that the consumer price index was well-behaved while huge amounts of money flowed into financial assets, producing the dot-com bubble.

The same thing happened in the 2000s, when excess currency flowed into housing and equities. In each case, mainstream economists and government officials pointed to modest consumer price inflation as a sign that things were fine. And in each case they were simply looking in the wrong place and completely missing the destabilizing effects of an inflating money supply. Continue reading »

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Nov 20

- Fake Employment Numbers – And 5 More Massive Economic Lies The Government Is Telling You (Economc Collapse, Nov 19, 2013):

According to a whistleblower that has recently come forward, Census employees have been faking and manipulating U.S. employment numbers for years.  In fact, it is being alleged that this manipulation was a significant reason for why the official unemployment rate dipped sharply just before the last presidential election.  What you are about to read is incredibly disturbing.  The numbers that the American people depend upon to make important decisions are being faked.  But should we be surprised by this?  After all, Barack Obama has been caught telling dozens of major lies over the past five years.  At this point it is incredible that there are any Americans that still trust anything that comes out of his mouth.  And of course it is not just Obama that has been lying to us.  Corruption and deception are rampant throughout the entire federal government, and this has been the case for years.  Now that some light is being shed on this, hopefully the American people will respond with overwhelming outrage and disgust.

The whistleblower that I mentioned above has been speaking to John Crudele of the New York Post.  In his new article entitled “Census ‘faked’ 2012 election jobs report“, he says that the huge decline in the unemployment rate in September 2012 was “manipulated”… Continue reading »

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Nov 11

FYI.



YouTube Added: Nov 10, 2013

- Ron Paul Exposes The Fed-Driven Erosion Of US Living Standards (ZeroHedge, Nov 11, 2013):

Submitted by Ron Paul via The Free Foundation,

One of the least discussed, but potentially most significant, provisions in President Obama’s budget is the use of the “chained consumer price index” (chained CPI), to measure the effect of inflation on people’s standard of living. Chained CPI is an effort to alter the perceived impact of inflation via the gimmick of “full substitution.” This is the assumption that when the price of one consumer product increases, consumers will simply substitute a similar, lower-cost product with no adverse effect. Thus, the government decides your standard of living is not affected if you can no longer afford to eat steak, as long as you can afford to eat hamburger. Continue reading »

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