So Where’s the Inflation?
Reason looks at past predictions for the Qualitative Easing (QE) programs embarked upon by the Fed in 2009. Since then the Fed has flooded the world with dollars. So where is the inflation?
As Reason notes you can’t trust the CPI, so what can you trust?
How about your own senses. Remember the Subway ad jingle “Five…. Five… Five dollar foot long.” Subway used to sell several foot long sandwiches for $5. Then after awhile they limited their $5 special to certain months like February aka “Februany.” Now there aren’t any foot long subs on the menu for $5.
Or how about health insurance? Over the past five years the value of my house has declined yet it costs as much to cover just myself now as it did to cover my entire family 5 years ago.
While gas has declined recently thanks to the Saudi efforts to kill the US fracking industry, all other daily items have gone up. The government just doesn’t report it. Reason also notes that QE has exported US inflation to other countries, notably China and Philippines. QE is also feeding an asset bubble in the stock market and in high-end luxury goods and properties.
So the answer to where the inflation is is that it’s hidden for now, but the Fed can only defy gravity for so long before what it has built for the benefit of the wealthy comes crashing down. When it does, they won’t be able to hide Inflation any more.
Lee:
http://www.schiffradio.com/blog?action=blogArchive&blogTag=GDP
http://marketdailynews.com/2013/05/08/big-mac-index-exposes-flawed-inflation-data/
It’s all about “Lies, damned lies, and statistics.” If you keep changing how an index is defined so that the index gives you the numbers you want, it will always look sunny!
Inflation, GDP, employment—the numbers are all manipulated so they look good.
🙁
1 December 2014, 11:35 amWatcher’s Council Nominations – Post Thanksgiving Edition | Nice Deb:
[...] The Razor – So Where’s The Inflation? [...]
3 December 2014, 12:28 pmThe Council Has Spoken!! This Week’s Watcher’s Council Results | Nice Deb:
[...] therazor.org/?p=7950 [...]
5 December 2014, 11:53 amSteve D:
How about your own senses.
How about my receipts for gas, food and the like which I’ve saved over the years? I got real data baby and inflation is back – actually it never went away.
5 December 2014, 1:39 pmScott Kirwin:
Steve D
5 December 2014, 3:12 pmSince my parents survived the Depression I learned to be a frugal shopper. Consequently I pay attention to everything I buy, whether it’s packaged cheese or college tuition.
The only things that have declined in price are electronics. Everything else – EVERYTHING - has gone up, and since I don’t buy a big screen TV every week the decline in the price of electronics has limited impact on me.
The Razor » Blog Archive » Council Submissions: Dec 3, 2014:
[...] So Where’s the Inflation? The Council Has Spoken: Dec 5, 2014 [...]
24 December 2014, 2:16 pmThe Razor » Blog Archive » The Council Has Spoken: Dec 5, 2014:
[...] Sixth place t with 1/3 vote –The Razor – So Where’s The Inflation? [...]
24 December 2014, 2:16 pmThe Council Has Spoken!:
[...] Sixth place t with 1/3 vote –The Razor – So Where’s The Inflation? [...]
24 February 2015, 5:25 am