Re: Long expected price inflation is starting.

On Jan 8, 2:09 pm, Winston_Smith <inva...@xxxxxxxxxxxxx> wrote:
On Sat, 08 Jan 2011 13:54:48 -0500, Frank





<frankperiodlogu...@xxxxxxxxxxx> wrote:
On 1/8/2011 1:31 PM, Winston_Smith wrote:
Making breakfast I noticed the "gallon" of OJ I just bought is
actually 59 oz instead of the 64oz it has been for decades.  Same
price.  That's 8.5% price inflation.

They can report zero inflation, - and they can yammer about fear of
deflation to get to print some more - because food and energy are not
necessities and don't figure in the governments commonly quoted
inflation figures.
I'm ticked too.

When they calculate inflation, they also include cost of housing, so
overall it is slight as costs of houses continue to drop.

But, for those of us that own our own home, inflation is raging.

I heard of another trick.  Auto sales are up they tell us.  Actually
total dollars are up because cars are costing more but actual vehicles
delivered are down.  

And there are fewer used cars because the "Cash for Clunkers" were
destroyed (and scrap sold to china for pennies.

The government economic model divides dollars by
a fixed base and out pops the "official" sales in number of vehicles.
The same seems to apply to Christmas shopping numbers.

The FED is out of tricks except perhaps print even more.  That will
juice the advertized numbers while the economy actually slows.  About
all they can actually do is keep pumping up public confidence to
stimulate spending and hope the natural business processes work us out
of the mess.  The government, the investment houses, the financial
press, the pension funds, the banks are all in on the gimmick because
that's about the only card they have to work with and they desperately
want to keep their golden goose alive.

Yup. That's why it was a legitimate claim when I said that you Bobs,
the DNC, and the Liberal Press were harming the economy by harming the
confidence in our country, our president, our government, our
military, and our dollar.

Does any of that ring a bell?
.

Relevant Pages

  • Re: Long expected price inflation is starting.
    ...  That's 8.5% price inflation. ... and the Liberal Press were harming the economy by harming the ... confidence in our country, our president, our government, our ... Confidence in the president has very little to do with the condition ...
    (misc.survivalism)
  • Re: Paul Krugmans Baby Sitting Co-op "Recession"
    ... I agree 100% but this is not what Krugman says. ... it's ok for the government to print ... Of course this will cause a price inflation and will ... This however cannot happen in the co-op model: ...
    (sci.econ)