Posted on 03/17/2012 3:57:04 AM PDT by carriage_hill
Who am I to rain on a Pre-Saint Patty's Day parade...?
But there's a storm coming, my friends.
And the government has us marching merrily into what will be a dozy of a downpour.
I'm talking about inflation...it's here. And trust me, it's already marching.
The government won't tell you that. Keeps putting out numbers that pretty much dismiss that.
The latest consumer prices didn't seem to show it, or even hint it.
But trust me; we're in the grips of it.
And I’m not talking gas. Or milk. Or cheese. Or meat. Or cereal. Or any one of the myriad of basic staples whose prices continue to ripple.
More cabbage for that cabbage. More cash for that corned beef.
The government says it doesn't see it.
But we do. And you know something? Some very smart people who bet real money on this stuff see it too.
(Excerpt) Read more at foxnews.com ...
Uncle Ben is going to have to start increasing interest rates - and all that government debt is going to won’t just go away ....
Every one of us is, one way or another.
Uncle Ben is going to have to start increasing interest rates - and all that government debt won’t just go away ....
I don’t even pretend to know *what* it’s all about, let alone know *how* to fix it.
Realize Cavuto isn’t talking about gas or groceries, yet when those cannot be bought, and some are turning their backs on gas and groceries (costs too much), then everything else is not going to matter (imho), for the shtf moment draws neigh.
That's because the government doesn't include any of these pesking "rippling" effect commodities in its calculations. Durables, manufacturing items, blah, blah, blah...
The only "rippling" I see with these pesky consumer items, which we all curiously have to have to live, are monotonicallly INCREASING prices.
This corrupt government, its master(s), its ideologues, its massively colluding media ALL are collectively lying while looking at the inflation mirror - bursting at the seams it seems, still saying they aren't fat-assed slobs.
Just remember, that little prick "media economic reporter" you hear on your local drive time radio station, telling everyone there are good signs the economy is improving, using couched words that imply progress, etc. owe their livings to pleasing their liberal ideology bosses and station owners. Don't expect one whit bit's truth from them.
I don’t think Odumbo can outrun the mess he has created. We’re gonna be in a hot mess by November....
“The inflation statistics, like the employment numbers, are being distorted and redefined to such an extent that they are now blatant lies with rationalizations that only kool aid addicts can swallow.”
________________________________________________
The entire Obumbo administration is a lie, and built on the same principle.
I am sure no financial genious, but it’s about time interest went up.
It’s crazy to keep it low. It was lowered far too much to begin with.
Of course what this story intimates is that interest rates for loans will soar , and they probably will.The problem is will interest on our own savings soar with it.
It’s tie Americans were paid 4 or 5 % interest on their savings, not the ,10% they are getting now.
It is my fear that interest on loans will soar while interest on savings remain in the low low .10% range.
Well said.
Cavuto is one of the few I really like at Fox. I still trust him to tell us the truth. His Common Sense minute is always spot on.
Burn-yankee better fire up the Fed's black helo and start the paper airdrop.
The Fed has been printing dollars like CRAZY. Those dollars are making their way into the economy but lots of those dollars are still being held because the desire to hold cash balances is high.
A recent Robert Wenzel post discussing an Amity Shlaes article stated:
“When she (Shlaes) writes “perception is reality”, she is really discussing the change in the desire to hold cash balances. The desire to hold cash balances was very high during the financial crisis. That is now changing. As the price inflation picks up, the desire to hold cash balances will collapse causing prices to climb very fast.”
“perception is reality”, that’s why the Fed and the Obama Administration are trying to hide the rising inflation rates. If all those dollars created by the Fed make their way into economy, inflation runs rampant.
Links to Wenzel’s post and Amity Shlaes article:
http://www.economicpolicyjournal.com/2012/03/how-quickly-can-price-inflation-explode.html
Anyone who regularly shops for and buys gas, milk, cheese, meat or cereal....knows that inflatuion is serious. I was astounded last week at the cost of a grocery bag of milk, eggs and bread. Not to mention the cost of gas to get to the market.
Someone should ask Bambi and Moochelle and Joe “middle class” Biden what they paid for a gallon of milk, a loaf of bread, and a dozen eggs last year, and now this week.
In fact, no one should be elected president who cannot answer this question. Which pretty much rules out everyone running.
“Every one of us is, one way or another”.
Every one of us is, or will be.
Jimmy Carter all over again?
Stagflation: In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high.
I think it’s worse than him.
*how* to fix it.
Get congress to stop spending more than they take in, and states to stop depending on an influx of federal debt dollars as an answer to their financial difficulties.
...and yes both those challenges are more than federal and state legislators are capable of dealing with if reelection is on their minds. What is coming will hurt worse, if nothing is done until it hurts.
$10 says none of those 3 even know what retail prices are vs last year. Their US Taxpayer-paid “servants” shop for them.
In fact, no one should be elected president who cannot answer this question. Which pretty much rules out everyone running.
Newt could answer I’m quite sure!
That said, I don’t paint myself into a corner. I will be willing to vote for the anti Obama candidate whoever that might be. One can only hope the rest of “thinking” America will be willing to do the same.
>> Hope no one here is in that milieu of a collapsing financial mess.
Hey, who WOULDN’T jump at the chance to lock up their dough with Uncle Sam for ten years at a whopping two percent?
Ya really think Callista is a domestic goddess who knows eggs cost $.80 a dozen last year now run about $3 a dozen?
I never figured Newt married her for her coooking. But I bet he knows the cost of gold jewelry.
I still remember Sarah Palin buying diapers at Walmart in 2008. How the left despised and ridiculed her.
How can anyone who goes grocery shopping not see that the price has doubled and the package has been cut in half ??
This isn’t rocket science. This is called inflation!! The dollar is worth less - much less now than it was 3-4 years ago...
Apparently, all these government poweratti, media reporters, economic advisors, economists, stock brokers, et al have never been inside a flippin’ grocery store.
They must eat out every night.
There is stuff in the store I just don't buy now. I can afford it but it seems so high priced compared to what it was not long ago.
Has anyone else noticed a big jump in the cost of bacon? Seems it went up $1.00 overnight. And frozen OJ is twice what it cost a few years ago.
The purchasing department at our company has been sending all us salesmen price increase letters from our vendors lately. Across the board, price increases of an average of 8% taking place immediately....
Wait until gas prices get insane.....
Ah, but the government has a 'work around'.
Those items aren't included in the general CPI.
What the he!! do they list? Housing? car sales? stuff you buy every Blue Moon? What about the things we buy every day, Food, Fuel, Energy!
The ignorant public only hears the gov/MSM spew.
Even to the point of not believing their own eyes and wallet.
I go shopping with my wife every week and it's eyeopening how prices are going up.
One little item.
I buy Kroger brand flavored water.
6 wks. ago .59/btl. Jumped to .79 about a mo. On 'sale' last wk. 2 for 1.50.
And yet, even with their stuff, the running average that lives in the background of my mind has gone up ~35-40% over the past year.
No, I've not kept a database of it, but I bet it'd prove to be a pretty damned accurate number.
What these 'elites' don't seem to be able to grasp is that if/when things spiral completely out of control,
all the money/gated developments/security in the world won't keep the marauding zombie mobs from slitting their throats.
Sow the wind, reap the whirlwind . . .
We are getting deflation of our high cost assets ( some stocks definitely real-estate and other high end markets; boats, some collector cars etc) and Inflation in the living commodity arena.
Obama - some combination of James Buchanan, Herbert Hoover, Lyndon Johnson, Jimmy Carter.
Canned goods, beans, corn, etc., were around the .40 to .50 cent range a mere two-three yrs. ago. Now you have to pay .89-.99 for the same thing!
And coffee is also way up. A year ago I was getting the large tubs (32 or 34 oz, IIRC) of Folgers and Maxwell House on special for $6.99. Now when it’s on special, it’s $8.49.
Cut the house phone out last month, cut the TruGreen guy 6 months ago, started rolling my own smokes a year ago, have always bought groceries only from the ads/specials, changed my car insurance deductible... homeowners insurance agent is working on finagling that bill down some for me, no raise in 4 years... maybe no job if ObamaCare gets past the Supremes.
Oh yeah, the good times keep on rolling in this Obama economy.
I spoke Thursday with a purchasing agent for a company that manufactures mining equipment. He said the price of electric motors was rising. Other prices are up to a lesser degree.
That means his prices must rise.
I think he meant "doozy."
“Ya really think Callista is a domestic goddess who knows eggs cost $.80 a dozen last year now run about $3 a dozen”?
Frankly that was not the question, and Callista isn’t running for the highest office in the land.
The dollar is worth less - much less now than it was 3-4 years ago...
The price of gold alone is an indicator of the value of every fiat currency in general.
-——Then the house of cards will crumble. -——
The collapse is not so much a house of cards as it is a Hollywood set, a lifelike facade with nothing except the front.
The only solution to the mounting problem has always been to inflate away the debt. The trick was to hold off the inflation pressure and awareness until after the 2012 election was won. There is some possibility that the problem was exacerbated by overwhelming borrowing because it was known that the probability of a second term was remote.Thus, the Soylendra and such loans that are actually political payments into hidden accounts to be kicked back.
Back to the inflation topic. By devaluing the US$ (and the €) at a controlled rate, the debt is devalued and when it reaches half the value in current $$’s can be managed. If inflation is compounded at 7% the value of the present debt will be halved in about 10 years.
The question then becomes what is the design rate and can that rate of inflation actually be controlled?
We are about to begin to learn the answers
Incorrect. The government massages the numbers in an entirely different way, and it is important to understand that if you are attempting to convince someone else that the government is massaging the numbers. One cannot fight disinformation with innacuracy.
oops—innaccuracy
Bacon - yeah $5/lb. and when you cook it down it’s about $5 for 8 oz.
Only steak I treated us to was flat iron (shoulder) which was $6.99/lb. just a couple of months ago - now $8.99/lb. Still a bargain compared to T-bones or strips, but not as much of a bargain.
But we do. And you know something? Some very smart people who bet real money on this stuff see it too.
People who trade government treasury notes and bonds.
[Not trying to hijack the thread] Isn't it interesting that Cavuto mentions this on a large media outlet? You'd think the blogs would've noticed first.
At least with 70s inflation, we had high interest rates. Now we (effectively) have zero interest rates. So, today’s inflation is a direct tax on savers.
I never thought I’d begin to “appreciate” Carter, but I guess everything is relative.
If you read how CPI is calculated, with milk as an example, the specific milk type, container size, and representative store chosen (and followed/tracked) is all governmwent choice. In the eight major groups tracked, it is not hard to see how, where and why the government’s choice can be manipulated.
History is a process, not an event. We are in the early stages of the process and higher rates will certainly come.
If one think in terms of say ten years or longer and a process developing over that long period,the total view becomes different.
I try to take the very long view and am certain that is the way Newt visualizes the situation. Now is but a narrow slice of a long future.
How cheap is residential real estate, really, given real price declines in current dollars, let alone constant dollars? It's down more than perceived, if we're in an inflationary spiral.
Real wages are still declining. There is an historic number of job seekers depressing wages, as well as the wage pressure that comes from having to compete with third world workers.
There is no rate of return to be found in traditional savings with cash holdings, yet people persist in doing so, there has been no rush to the exits. What motivates this? Fear? Uncertainty? Everything else just sucks that much worse?
My take has been that all the stimulus has manifested in commodity bubbles, those commodities that experience steady if not increasing demand. Everything else is indicative of a deflationary event. We're being bankrupted as a nation and all we're getting for enslaving future generations is expensive food and fuel, while everything else goes great Depression on us.
Deferred maintenance is starting to become visible in neighborhoods around me. You can buy a house now for less than the cost of new construction alone, forget the land cost. Maintenance is expensive while the structure itself depreciates much more rapidly.
Cheap stuff you don't need and expensive stuff you do need has been a feature of this situation from the very outset, in 2008 certainly, but this extends to 2007 from a purely technical observational vantage point.
Relentless wage pressure does not lend itself to fueling an inflationary spiral. Declining asset values do not lend themselves to it, either. If this bizarre distortion continues, we'll see more companies just up and folding in the foodstuffs business, due to loss of sales and inability to discount. We'll see a spreading of abandoned houses, because it costs more to repair them than they're worth in resale.
Penury for all but a few is what it means. Grow a garden, get things done around the house by bartering with neighbors or friends. Cut every expense to the bone and just ride it out.
I have no idea at this point, what's really coming down the pike, but it can't be good.
Info
The (immediate) problem is that we live in the present. And we all don’t have as much future as we once did. Some of us less than others. :^)
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