I was at a seminar this week with a respected investment manager/statistician. He says the current rate of real inflation is about 2.5%.
I just bought a few hundred gallons of oil and some silver bars; I think 2.5% is understating it. People say commodities are going up; it is the dollar going down. I was in Quebec recently; the dollars are practically on par. That is not a good indication for Americans, especially those crossing the border to visit or do business (though a great sign for American merchants along the border; Canadian shoppers are pouring in because their money goes further and the sales tax is much less).
Our money is being de-valued in front of our faces; a really frightening thought is that people are viewing their lower home values in terms of “pre-Obama” dollars. They’d be shocked at how much less value 2011 US dollars really have in comparison to 2008 US dollars.
Don’t tell me you believe that 2.5% figure.