Inflation is making headings all over the country, however the mainstream media is not being truthful about the true seriousness of the crisis. We are being told that the official rate of inflation is still in single digits, however what we aren’t being informed is that the way inflation is computed has altered drastically for many years. In reality, according to Forbes “the federal government has actually changed the way it determines inflation more than 20 times” over the previous 30 years. The rate of inflation directly affects so many other things in our system, and the government wants to keep that number as low as possible. So they played and tinkered with the formula until they got it simply where they desired it.
However even with the highly modified formula that they are now using, the rate of inflation still increased at the fastest rate in nearly 13 years last month …
The customer rate index, which represents a basket consisting of food, energy, groceries, real estate costs and sales throughout a spectrum of products, rose 5% from a year previously. Economic experts surveyed by Dow Jones had been anticipating a gain of 4.7%.
The reading represented the greatest CPI gain since the 5.3% increase in August 2008, prior to the financial crisis sent out the U.S. spiraling into the worst economic crisis given that the Great Depression.
All of us remember what took place in the months following August 2008.
Hopefully we will not have a repeat of that.
Of course the reality is that consumer rates are not simply rising at a 5 percent rate in the United States right now.
According to John Williams of shadowstats.com, if the rate of inflation was still calculated the manner in which it was back in 1990, it would be above 8 percent today.
And if the rate of inflation was still computed the way that it was back in 1980, it would currently be sitting at about 13 percent.
But 5 percent inflation sure sounds a lot much better than 13 percent, does not it?
Something that I am keeping an extremely close eye on is food inflation. Earlier today, I came across a story from one CBS affiliate in which they used the term “sticker shock” to explain what customers are now experiencing at the supermarket …
You might have noticed a substantial dive in rates at the grocery store.
Increasingly more grocery buyers are experiencing sticker shock every day. The rate of food– especially meat, vegetables and fruit– is increasing.
If rates were increasing at simply a 5 percent annual rate, that would not be a big offer.
Sadly, the truth is much worse than that, and that is specifically true for meat costs. According to one deli owner, the real rate of inflation for meat prices is “probably closer” to 20 or 30 percent …
Jeff Cohen, a deli owner and meat wholesaler, stated those elements are making the price of meat out of control.
“They said on national news it’s 10 percent. But that’s not true. it’s most likely more detailed 20, 30 percent,” Cohen stated.
We will continue to get a great deal of delighted talk from the Biden administration and from the Federal Reserve, but this is becoming a genuine nationwide crisis.
When CBS News talked to one buyer in Maryland, she said that she is now investing about two times as much on groceries as she did before …
Abby Walter stated she began discovering her grocery costs approaching previously this year. Prior to January, the Maryland local had actually generally spent about $75 a week on groceries. Now her costs is balancing about $150 or even more.
I still keep in mind when I might get a whole shopping cart of food for simply 25 dollars.
Now if I can get an entire cart of food for less than 200 dollars, I consider that to be a significant achievement.
I try really tough to take benefit of sales and make every dollar stretch as far as I can. But nowadays some of the sale prices are higher than the old regular costs.
As global commodity rates have actually blown up higher in recent months, business have actually been forced to pass those boosts along to customers, but they are attempting to utilize language that will not trigger widespread alarm …
If you ask Pampers maker Procter & Gamble Co., it’s not raising prices, it’s “taking rates.” Rival Unilever, understood for Dove soap and Axe body spray, says it’s been “extremely active with pricing.” The reward for imagination– up until now at least– has been home-improvement merchant Lowe’s Cos., whose financing chief told investors Wednesday that it was “elevating our pricing community.”
What on the planet is a “pricing ecosystem”?
I would like to have a representative from Lowe’s define that for me.
Executives from General Mills are likewise using language that borders on the unreasonable…
Then there’s cereal maker General Mills Inc., whose lingo includes arcane phrases like “strategic earnings management” and “holistic margin management,” which is not language you ‘d ever discover on the back of a box of Fortunate Beauties. The company utilizes those terms so typically, in truth, that its CEO now simply describes them by the acronyms SRM and HMM.
Why can’t they simply say that they are “raising prices”?
Nowadays, I cringe whenever I decrease the cereal aisle. It is hard for me to believe that cereal costs are so high now, but I know that they will ultimately get a whole lot greater.
We have way a lot of dollars chasing way too couple of products and services, and rather of taking emergency steps to get inflation under control our leaders appear intent on making things even worse.
The Biden administration wished to spend 2 trillion dollars on facilities, but a group of U.S. Senators is presently dealing with a “compromise deal” that would only supply 1.2 trillion dollars in new infrastructure costs.
This is on top of the trillions upon trillions of dollars that we have already obtained and spent during this crisis.
We can’t do this anymore.
It is total and utter madness.
However our politicians in Washington don’t appear to care. They are going to continue to obtain and spend giant mountains of cash that we do not have, and the Federal Reserve is going to continue to shovel enormous gobs of cash into the financial system.
So more inflation is on the way, and the requirement of living for a lot of Americans is going to continue to decrease.
*** Michael’s brand-new book entitled “Lost Prophecies Of The Future Of America” is now available in paperbackand for the Kindleon Amazon. ***
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