The Obama/Fed Misery Indices: Gasoline and Food Have Grown Faster Than Gold Since December 2008

Confounded Interest ^ | 10/21/2012 | Anthony B. Sanders

[whitedog57]

The original misery index was created in the 1960s by economist Arthur Okun. It was simply a sum of the inflation rate and unemployment.

Time have changed. While the U6 unemployment rate rests at a hideous 14.7%, inflation (as measured by the Consumer Price Index less Energy and Food) has been quite low. In fact, if we compare the CPI less Food and Energy at the end of 2008 and today, it has grown 6%.

But as I said, times have changed. The “real World” measures of misery are reflected in the table above.

The good news (?) is that housing has declined by -6% since the end of 2008. Well, this is not good news if you currently own a home (or have a mortgage loan on your books), but it is good news for households buying a home.

Basic commodities for consumers have risen far faster than the “inflation rate” led by potatoes which have increased by over 300%. Gasoline has increased by 137% and milk had increased by 113%.

In fact, potatoes, butter, coffee, gasoline and milk have all increased faster than gold!

While flour, rice, eggs and sugar have increased less than gold, they have grown considerably faster than the inflation rate and house prices.

So when either Fed Chairman Ben Bernanke or President Obama mention that inflation is quite low, take a look at your grocery bill or gas pump at your local Shell, Sunoco, Exxon or Valero station.

In the Ian Fleming classic “Moonraker,” James Bond drives by a sign saying “Summer Shell is Here!” However, some of the letters are obsucred.

hell is here!

Indeed, at least for consumers.

[whitedog57]

While we know that food and gas have exploded under Obama and The Fed, this economist presents a nice table comparing The Fed's definition of inflation with what consumers actually pay.

The best one is that potatoes, butter, coffee, gasoline, beef, and milk have all risen faste than gold!

Sorry is this is too late. I just woke up out in sunny California and this economist usually posts in the early AM in the easter time zone,

Enjoy!

[Larousse2]

Trevor Loudon- An Urgent (and chilling) Message for America

[upchuck]

And the Social Security COLA for 2013 is a generous 1.7%, of which Medicare will take a sizable chunk.

[Diogenesis]

[SunkenCiv]

Thanks whitedog57.