Oct 28

- Can’t Find Any Inflation? Here’s A Place To Start (ZeroHedge, Oct 27, 2014):

Lately, there has been much anguished consternation, especially among the tenured US economics professors (primarily those who make 6-digits or more per year) and of course, the Federal Reserve where as we revealed last week, at least 113 government workers make $250,000 (excluding bonuses) and thus all are confined within the cozy cocoon of America’s “1%ers”, about the so-called complete disappearance and collapse in inflation. So to help these ivory tower-confined individuals in their holy grail to rediscover the inflation that is more than felt by the rest of America, here are two simple charts.

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Oct 28

- The Monetized New Millennium (StealthFlation, Oct 4, 2014):

New Monetized Millennium Facts Jack:

  • US real median family income has declined to the level of twenty years ago.
  • Labor participation rate has dropped to a 36 year low.
  • Total U.S. household debt, currently over $10 trillion, nearly tripled during the new millennium.
  • U.S. debt to GDP ratio up over 100% since we entered the new monetized millennium.
  • Anemic to flat-line average Real GDP growth throughout the new monetized millennium.
  • As for the new millennium inflation results, take a peak at the chart below, it will blow your mind.

inflation Continue reading »

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Oct 19

- Kudos To Herr Weidmann For Uttering Three Truths In One Speech (David Stockman’s Contra Corner, Oct 17, 2014):

Once in a blue moon officials commit truth in public, but the intrepid leader of Germany’s central bank has delivered a speech which let’s loose of three of them in a single go. Speaking at a conference in Riga, Latvia, Jens Weidmann put the kibosh on QE, low-flation and central bank interference in pricing of risky assets.

These days the Keynesian chorus in favor of policy activism is so boisterous that a succinct statement to the contrary rarely gets through – especially at Rupert Murdoch’s Wall Street yarn factory. But here’s what penetrated even Brian Blackstone’s filters:

“The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,” he said.

Continue reading »

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Oct 04

Clearly Europe Has A Crushing Deflation Problem… Oh Wait (ZeroHedge, Oct 4, 2014):

When Mario Draghi set off on his latest quest to slay Europe’s deflation monster, after an endless array of failed alphabet soup programs to inject money into stock markets mysteriously failed to fix Europe’s insolvent economy riddled by record unemployment and trillions in non-performing loans, he clearly was guided by this latest Eurobarometer survey of Public Opinion in the European Union, in which virtually everyone across the board admitted that the most important issue facing the common folk in Europe is plunging prices and crushing deflation.

rising prices

Oh wait… it says rising prices/inflation.

Well, that’s embarrassing. Please ignore everything we just said, because paradoxically to “fix” Europe, Mario Draghi is desperately trying to make Europe’s biggest problem even worse.  Or not: surely this is just a case when the 6 members of the ECB’s executive board “know better” than some 330 million Europeans. Continue reading »

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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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