2% Inflation???
Seriously??
Anyone who has bought groceries or fuel in the past 12 months knows that the “real” inflation rate is probably around 12% per year.
Just like the unemployment rate is 7.something when 8 million fewer people are employed than four years ago.
I just can’t tell if I’m reading Pravda or Tass.
Price of corn is clearly inflated due to drought and RFS; however, the decline in the dollar clearly has increased corn prices. Same with oil, by all accounts plenty of production, but price remains high.
With biflation on the one hand, the economy is fueled by an over-abundance of money injected into the economy by central banks. Since most essential commodity-based assets (food, energy, clothing) remain in high demand, the price for them rises due to the increased volume of money chasing them. The increasing costs to purchase these essential assets is the price-inflationary arm of Biflation. With biflation on the other hand, the economy is tempered by increasing unemployment and decreasing purchasing power. As a result, a greater amount of money is directed toward buying essential items and directed away from buying non-essential items. Debt-based assets (mega-houses, high-end automobiles and other typically debt based assets) become less essential and increasingly fall into lower demand. As a result, the prices for them fall due to the decreased volume of money chasing them. The decreasing costs to purchase these non-essential assets is the price-deflationary arm of biflation