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We Told You We'd Be Talking About Inflation...
BI ^ | 5-27-2014 | Joe Weisenthal

Posted on 05/27/2014 6:08:21 AM PDT by blam

Joe Weisenthal
May 26, 2014, 11:11 AM

At the end of last year, we wrote a post titled: Pretty Soon We Need To Talk About Inflation.

The argument was not that inflation was going to be a problem, or that the Fed needed to tighten rates, or anything like that.

It simply pointed out that since the crisis, there's been no legitimate reason to even be discussing inflation, since there wasn't any. But that that was about to change.

And indeed, here in 2014, there are indeed a lot of people talking about inflation.

Morgan Stanley's Vincent Reinhart writes in a recent note:

Our analysis also suggests that we’ve passed the lows and will see a gradual inflection higher in core inflation back towards the Fed's 2% target through 2015. Since the fall of 2012, the Fed has been communicating that the appropriate timing for the first rate hike will be around mid-2015. That expectation has been predicated on the assumption that inflation will move gradually, and convincingly, toward its 2% goal. The fact that we are likely on the cusp of seeing the Fed's expectation for inflation play out should have no bearing on the FOMC's forward guidance - a forecast coming true is not a reason to change the forecast.

Last Thursday, Wells Fargo wrote:

The debate over how much slack remains in the labor market is heating up within the FOMC. Where participants’ views currently lie and how they evolve in the coming months will shape members’ outlooks for the two sides of the Fed’s mandate and, by default, the timing of when to raise interest rates. Fed Chair Janet Yellen has emphasized a range of data indicative of labor market slack beyond the traditional measure of the unemployment rate.

(snip)

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; fed; inflation; prices

1 posted on 05/27/2014 6:08:21 AM PDT by blam
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To: blam
U.S. Food Inflation Running At 22%
2 posted on 05/27/2014 6:09:22 AM PDT by blam
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To: blam

Anything like “shadowstats” or something that has the real inflation rate, including food and energy?


3 posted on 05/27/2014 6:10:03 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: blam

Yep, for >5 years. It certainly took its time to get here.
I gave up posting Schiff’s inflation predictions years ago.


4 posted on 05/27/2014 6:10:43 AM PDT by sickoflibs (Obama : 'The debate is over. The time for talk is over. I won. ')
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To: blam

Food prices hae risen steadily since 0 ook office but very noticeably with this second term.


5 posted on 05/27/2014 6:12:04 AM PDT by jsanders2001
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To: jsanders2001

I know I’m paying twice as much for groceries as I was 5 years ago.


6 posted on 05/27/2014 6:18:03 AM PDT by wolfpat (Not to know what has been transacted in former times is to be always a child. -- Cicero)
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To: jsanders2001

Certainly for meat and produce. Packaging sizes have decreased resulting in less product for relatively the same amount of money.


7 posted on 05/27/2014 6:19:12 AM PDT by gov_bean_ counter (Romans 1:22 Professing themselves to be wise, they became fools)
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To: blam
Kyle Bass On China's "Contraction" And "The Fed's Worst Nightmare"
(Deflation)
8 posted on 05/27/2014 6:20:20 AM PDT by blam
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To: blam

We’re on track.

And that locomotive is right behind us, bearing down, with the whistle blasting repeatedly.

Train-dodging is a highly risky sport.


9 posted on 05/27/2014 6:20:36 AM PDT by alloysteel (Selective and willful ignorance spells doom, to both victim and perpetrator - mostly the perp.)
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To: jsanders2001

Food prices hae risen steadily since 0 ook office but very noticeably with this second term.

**********
True that. Food packages are also getting smaller, or at least their content is. Many companies are shrinking their products but maintaining the same price. Walking through the grocery store is a depressing exercise these days.

This is yet another problem that the administration and its allies in the leftist media have successfully covered up. They don’t govern; they manipulate.


10 posted on 05/27/2014 6:23:59 AM PDT by Starboard
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To: blam

Yep. If you don’t have investments that at least keep your money ‘even’ with inflation, you are continuously losing. I use banks only for my mortgage and for checking/debit card transactions. That said, I was asked recently by my bank whether I wanted to open a savings account. The annual interest return? 0.03%. Of course I declined. What a joke.


11 posted on 05/27/2014 6:28:14 AM PDT by pieceofthepuzzle
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To: alloysteel

The Fourteen Year Economic Recession

12 posted on 05/27/2014 6:28:39 AM PDT by blam
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To: blam
So the reason we've endured the invasion of the US is to keep the numbers of unemployed high and wages low?

I would submit that for those of us who are debt-free and have some savings, some inflation which caused increase in wages and interest paid on savings will be a good thing.

13 posted on 05/27/2014 6:29:25 AM PDT by grania
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To: jsanders2001
food prices have risen steadily...

Where I've noticed it is on the shelves of those grocery stores and discounters that cater to budget-savy customers. A lot of the quality items actually sell out in them lately.

A little trick....last day of the month, benefits start going out to pensioners and others who collect. The shelves tend to be fully stocked for that. I can always find fully stocked shelves and smaller crowds a day or two before that...Wednesday or Thursday this week are potentially good grocery shopping days.

14 posted on 05/27/2014 6:36:08 AM PDT by grania
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To: jsanders2001

15 posted on 05/27/2014 6:36:46 AM PDT by Wyatt's Torch
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To: blam

Generally rising prices (inflation) make all dollar amounts go up, while the actual value remains the same or decreases.
This gives the ruling elite the chance to say that the economic indicators are rising. But they aren’t.

They are insulated from the effects of inflation with their automatic pay and pension increases.


16 posted on 05/27/2014 6:52:32 AM PDT by I want the USA back (Media: completely irresponsible. Complicit in the destruction of this country.)
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To: blam

stagflation, anyone?


17 posted on 05/27/2014 6:53:09 AM PDT by Daveinyork
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To: jsanders2001

Obama can’t take all the blame for that, he isn’t God. This is a case where supply and demand is working.

Although excessive regulation has raised the price of food, the drought in the West has overshadowed those costs.

The Western US backgrounds so many calves until they go to the feedlot and they’ve had to reduce their numbers significantly. Even if we have rain it will take years to build herds again.

The Western rivers are so depleted that farmers aren’t getting their full allotment of water and are growing fewer water, labor and input intensive vegetables and in a lot of places are making more selling their water to other farmers who are desperate to keep fruit and nut trees alive.

We have a swine disease that is killing piglets and there is some kind of problem with shrimp. The price of chicken will come up because of the high cost of other meats.

And now with the forced alternative energy legislation in some states and the EPAs war on coal, pumping water is getting ever more expensive. We need the rivers running so at least the hydroelectric plants in the West can still run.

Just in our county, one of the largest, most prolific farmers is starting their year out with a 30% loss. They had a hail storm and it was too late to replant.

We still have an abundance of food in this country. We have so much new technology but technology can’t control nature and we have to rely on God.


18 posted on 05/27/2014 6:57:34 AM PDT by tiki
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To: Daveinyork

It’s dilution.


19 posted on 05/27/2014 7:30:31 AM PDT by sasquatch
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To: blam

You can’t have inflationary policies for over a decade without eventually experiencing inflation. I used to get out of the grocery store for about $100 less than a year ago now it seems I can’t get below $150. Of course they don’t count food in the statistics. It isn’t like that is a category of consumer goods that affects anyone.


20 posted on 05/27/2014 7:34:53 AM PDT by logic101.net (How many more children must die on the altar of gun control?)
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To: tiki

Okay so the Pharoah brought the curses and plagues against this country and the economic policies and the regulatory environment he created heavily contributed to inlation it but he had nothing to do with any if this. Sure. Okayyy....are you Jay Carney incognito?


21 posted on 05/27/2014 7:39:50 AM PDT by jsanders2001
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To: blam

That great chart of yours indicates Silver is about correct (ie the same) at $20/oz give or take. However, if you assume an ounce of gold was $20 in 1870 or even 1918 then that would mean $400/oz today. So either there is upside on silver or Gold is overpriced. Think it’s time to buy more silver.


22 posted on 05/27/2014 7:40:03 AM PDT by reed13k (For evil to triumph it is only necessary for good men to do nothings)
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To: grania

Debt Free is good.

But the inflation is eating away at your savings. So why is that a good thing?

If we had moderate/high inflation wouldn’t you want to borrow money and have little savings?


23 posted on 05/27/2014 7:40:29 AM PDT by crusher2013
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To: jsanders2001

^ in jest...


24 posted on 05/27/2014 7:41:04 AM PDT by jsanders2001
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To: reed13k
So either there is upside on silver or Gold is overpriced.


25 posted on 05/27/2014 7:42:23 AM PDT by Wyatt's Torch
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To: crusher2013
but the inflation is eating away at your savings. So why is it a good thing?

I'm in the same predicament as most seniors I know. It's the lack of interest paid on our savings that's eroding our savings.

The other thing that's hurting is all of the fees and increases in utility costs, because of "improvements" and government enviornmental "upgrades" and other such nonsense.

26 posted on 05/27/2014 7:48:12 AM PDT by grania
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To: Wyatt's Torch

A 2% decline over 3 days isn’t the range of the overpricing I was referring to. To correspond with a $20 gold piece from the time frame in question it would need to plummet to about $400/oz. I could see 800-1000, but don’t see it dropping to $400 again in the near future.


27 posted on 05/27/2014 9:13:55 AM PDT by reed13k (For evil to triumph it is only necessary for good men to do nothings)
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To: jsanders2001

Well, I’m pretty sure it wouldn’t matter who was president at this time the food situation would be no different.

To make matters better we’d have to go back to a time long before Obama and not remove hundreds of thousands of cattle from the US Forests and not put hundreds of thousands of acres in Wilderness Study Areas or reduce cattle numbers on Federal Land.

These things didn’t happen overnight, we fought but we lost and now the consumer is paying the price. The forests have turned into quagmires waiting to burn. The trash trees and brush have taken over so nothing is healthy.

I lay a lot at Obama’s door and it is people like him who gave us the crap regulations we have now and I have no doubt that if they weren’t already there he’d put out another EO but the chickens are only coming to roost on his watch.


28 posted on 05/27/2014 11:09:43 AM PDT by tiki
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To: reed13k
Long way for a $400 decline but this is the lowest since February and down 9%:


29 posted on 05/27/2014 11:29:20 AM PDT by Wyatt's Torch
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