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Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else
Zero Hedge ^ | 06/20/2014 | Tyler Durden

Posted on 06/20/2014 8:49:31 PM PDT by george76

Have you noticed that prices are going up rapidly? If so, you are certainly not alone. But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be. Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine. But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless. Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.

In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.

...

median household income in the U.S. is now about 7 percent lower than it was in the year 2000 after adjusting for inflation.

And if realistic inflation numbers were used instead of the government-manipulated ones, it would look a lot worse than that.

Inflation is a hidden tax that all of us pay, and it is systematically eviscerating the middle class.

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


TOPICS: Business/Economy; Editorial; News/Current Events
KEYWORDS: coal; electricity; energy; federalreserve; food; gas; inflation; obamanomics; oil; waroncoal; water
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1 posted on 06/20/2014 8:49:31 PM PDT by george76
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To: george76

All by design, Comrade. All. By. Design.


2 posted on 06/20/2014 8:50:46 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin
you have to fight to get raises in this economy, at least in the private sector....

and the raises don't even coverage just the rise in food prices....let alone everything else....

only thing to do is buy on sale, stock up on sale....reuse, and recyle...

3 posted on 06/20/2014 8:54:27 PM PDT by cherry
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To: george76

My wife and I are on SS as our only income. Every time we go grocery shopping we become more and more alarmed. Soon we will be eating grass and bark like the NK’s. Our only luxury is our Internet connection and that might be going away soon ... eat or play, that is the question.


4 posted on 06/20/2014 8:58:07 PM PDT by doc1019
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To: george76

It’s not “demand pull” inflation (if you know what that is?)


5 posted on 06/20/2014 9:00:00 PM PDT by CIDKauf (No man has a good enough memory to be a successful liar.)
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To: doc1019

Shop around for cheaper ways to get the internet before you cancel it. There’s probably folks on FR who know cheaper solutions. Anyone?


6 posted on 06/20/2014 9:04:04 PM PDT by Girlene (Hey NSA!)
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To: george76

I disagree with the whole premise of this article. For example, three years ago a can of my favorite energy drink cost $1.50. Today, that drink still costs $1.50. No inflation there.

It should be noted that three years ago, the drink came in a 12 oz can. Today it comes in an 8.9 oz can. But I think that was caused by global warming.

/s (of course)


7 posted on 06/20/2014 9:07:02 PM PDT by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: Girlene

I have done the shopping and I am using the cheapest online service in my area. Thanks for your concern, but it is what it is.


8 posted on 06/20/2014 9:08:22 PM PDT by doc1019
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To: doc1019

Prices for the non-elites have gone off the charts. I think one of 0’s moves is to completely strip the financial holdings of the middle class. Jarrettdix say there would be payback...

<img src=”http://i.imgur.com/YY7D6cg.jpg";


9 posted on 06/20/2014 9:11:19 PM PDT by jsanders2001
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To: jsanders2001
Prices for the non-elites have gone off the charts. I think one of 0’s moves is to completely strip the financial holdings of the middle class. Jarrettdix say there would be payback...
10 posted on 06/20/2014 9:11:46 PM PDT by jsanders2001
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To: Leaning Right

11 posted on 06/20/2014 9:14:21 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: george76

Along with energy prices causing the spike in groceries and other consumables, there might be another factor at play: with the rising standard of living in the developing world, it’s probably costing more to make stuff overseas.

As the standard of living rises in the developing world, we’ll soon get no price break for making stuff there.

Then all the excesses of shipping manufacturing overseas will come home to roost with rising prices of stuff that used to be cheap.

You want inflation? Imagine how much clothing would cost if it were still made in the U.S.A.

All these years, the formerly cheap price of imported goods made it seem that rising prices weren’t that big a problem.


12 posted on 06/20/2014 9:25:44 PM PDT by Age of Reason
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To: doc1019

Plant a garden and get some laying hens.


13 posted on 06/20/2014 9:27:03 PM PDT by smokingfrog ( sleep with one eye open (<o> ---)
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To: Age of Reason

Price Index for Meats, Poultry, Fish & Eggs Rockets to All-Time High .

http://www.freerepublic.com/focus/f-news/3168907/posts


14 posted on 06/20/2014 9:33:18 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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Comment #15 Removed by Moderator

To: george76

Clever of that BLS to omit food and energy from the CPI basket of goods, because those measures “too volatile.” Not that anybody needs food or energy to live, so why include them in the core inflation numbers?


16 posted on 06/20/2014 9:39:23 PM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: doc1019
Salves all my problems, just grow some veggies.

Things are worse than I thought in the ObamaNation, when people have to make their own salves from home-grown veggies.

17 posted on 06/20/2014 9:42:30 PM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao

yes


18 posted on 06/20/2014 9:43:22 PM PDT by george76 (Ward Churchill : Fake Indian, Fake Scholarship, and Fake Art)
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To: doc1019

Oh well. It’s a little late in the year to start growing arugula, anyway.


19 posted on 06/20/2014 9:45:15 PM PDT by smokingfrog ( sleep with one eye open (<o> ---)
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To: kevao

Come on my FR friend, you know what I meant, but thanks for catching my mistake ... always appreciate correction, always learning.


20 posted on 06/20/2014 9:53:24 PM PDT by doc1019
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To: Leaning Right

Yesterday I stopped and got “fast food,” which for me is a whole roast chicken. I used to being them home for dinner, then use another portion to make salads, then the remainder would be torn up for chicken soup. The chicken I got yesterday was the size of a game hen. It actually fit in a salad bowl. I got two extra salads out of it, but nothing left over for soup. And it was the same price as always.


21 posted on 06/20/2014 9:57:20 PM PDT by ponygirl (Be Breitbart.)
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To: doc1019

I’m not the grammar police. Just having a little fun with you on a FRiday night. I’ve have my own list of bloopers, too :)


22 posted on 06/20/2014 9:58:01 PM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao

And just having fun in return. With almost 20K post, I have done my best to look stupid on more that one occasion. LOL!


23 posted on 06/20/2014 10:02:33 PM PDT by doc1019
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To: ponygirl

Always eat a big meal before shopping for food. That way, the smaller portion per price ratio, while just as real, doesn’t feel as drastic.


24 posted on 06/20/2014 10:05:06 PM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao

Who is John Galt.


25 posted on 06/20/2014 10:05:56 PM PDT by bicyclerepair (The zombies here elected alcee hastings. TERM LIMITS ... TERM LIMITS)
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To: doc1019

While you’ve done your best to look stupid, a lot of people don’t even have to try.


26 posted on 06/20/2014 10:09:02 PM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao

LOL! I guess ... LOL!


27 posted on 06/20/2014 10:10:41 PM PDT by doc1019
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To: smokingfrog

Plant a garden and get some laying hens.
*********************************************************
Just make sure Thad Cochran doesn’t have access to them or some indecent acts may happen!


28 posted on 06/20/2014 10:12:12 PM PDT by House Atreides
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To: doc1019

Wife and I are in the same boat. Every month we’re dipping into our savings. If we scrimp all we can we’ll run out of savings in about 4 years. And that’s only if nothing major breaks like the AC or the car or our bodies. I know we’re better off that a lot of people and we’re grateful for that. But it’s getting very scary. And it’s going to get worse before, or if, it ever gets better.


29 posted on 06/20/2014 10:54:05 PM PDT by VerySadAmerican (Liberals were raised by women or wimps.)
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To: doc1019
I hate to break this to you, but you and your wife are essentially the reason for the bogus inflation stats, which do not include food and energy.

By excluding those two item categories from the CPI, the Federal Government has essentially made the COLA's for local, state and federal pensions and Social Security disappear.

What's left in the indices? Basically, only durable goods and a number of related items under serious deflationary pressure because of currency manipulation by the Chinese.

30 posted on 06/20/2014 10:55:16 PM PDT by FredZarguna (Das ist nicht nur nicht richtig, es ist nicht einmal falsch!)
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To: ponygirl

We had a roasted chicken last night, left over veggies tonight and chicken salad tomorrow. That chicken doesn’t go as far as it used to. I just wish I could cook one like they do in the stores.

We’ve cut out deserts and may have no more than one coke a day. But the bill keeps going up.

I used to buy a twelve pack of beer for less than $5.00. I don’t drink anymore but I don’t understand how anyone can afford to drink today. Same with smoking. I quit 5 years ago. There’s no way we could afford to smoke today. I don’t know how the average person can afford to smoke or drink.


31 posted on 06/20/2014 11:00:56 PM PDT by VerySadAmerican (Liberals were raised by women or wimps.)
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To: smokingfrog
Plant a garden and get some laying hens.

Add a herb garden

Encyclopedia of Medicinal Plants, by Andrew Chevallier

32 posted on 06/20/2014 11:06:11 PM PDT by spokeshave (OMG.......Schadenfreude overload is not covered under Obamacare :-()
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To: spokeshave

Maybe grow some hemp...


33 posted on 06/20/2014 11:08:35 PM PDT by smokingfrog ( sleep with one eye open (<o> ---)
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To: kevao

Try skipping carbs and sugar. Remember that Food Pyramid? Guess what?

Total B/S. per the Centers for Disease Creation.


34 posted on 06/20/2014 11:13:05 PM PDT by acapesket
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Comment #35 Removed by Moderator

To: Leaning Right

Very good point. I too have noticed how the retail packaging of food has resulted in smaller quantities of food, at higher prices! Smaller everything was tried to hid the inevitable price increase. You pay more for less.
Chocolate and peanut butter are two funny examples. They have marketed both with an old trick. They inject air bubbles that reduce the weight of the product. Product is sold by weight, so WOW, you pay more for less!
They even promote it as somehow adding flavor to the product!
AIR changes the taste? Oh geez, these marketers really know how to BS the public!


36 posted on 06/21/2014 12:15:29 AM PDT by 9422WMR ("Ignorance can be cured by education, but stupidity is forever.")
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To: smokingfrog

Just got 4 new Auracuanas, the Easter egg chickens. They lay light green shelled eggs!


37 posted on 06/21/2014 12:17:46 AM PDT by 9422WMR ("Ignorance can be cured by education, but stupidity is forever.")
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To: kevao
Clever of that BLS to omit food and energy from the CPI basket of goods, because those measures “too volatile.” Not that anybody needs food or energy to live, so why include them in the core inflation numbers?

Also rather neat that core inflation is one of the main tools used by the Fed to measure how well they are doing. /sarc
38 posted on 06/21/2014 2:11:00 AM PDT by khelus
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To: khelus
Also rather neat that core inflation is one of the main tools used by the Fed to measure how well they are doing. /sarc

Also rather neat is that CPI determines retirees' COLAs.

39 posted on 06/21/2014 2:16:43 AM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao
Also rather neat is that CPI determines retirees' COLAs.

1999 Economic Report of the President: . . . ‘reason for the slowing of reported price indexes has been methodological changes to both the CPI and the indexes used in the national income accounts’.
40 posted on 06/21/2014 2:58:55 AM PDT by khelus
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To: kevao
Clever of that BLS to omit food and energy from the CPI basket of goods, because those measures “too volatile.”

Funny how food and fuel only seem to "volatile" in an upward direction.

41 posted on 06/21/2014 4:00:07 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
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To: george76

This does fit very nicely into hollowing out the middle class. Drive more and more to be dependent on the State. Leave a thin layer of the big government elites. A permanent slave class and a permanent ruling class.


42 posted on 06/21/2014 4:03:06 AM PDT by Flick Lives ("I can't believe it's not Fascism!")
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To: Diana in Wisconsin
All by design, Comrade. All. By. Design.

Yep - they have found the recipe that will put the final nail in the coffin of the middle class; inflation without the normal wage increases that offset it for those who work for a living.

43 posted on 06/21/2014 4:05:32 AM PDT by trebb (Where in the the hell has my country gone?)
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To: Leaning Right

...”I disagree with the whole premise of this article. For example, three years ago a can of my favorite energy drink cost $1.50. Today, that drink still costs $1.50. No inflation there.

It should be noted that three years ago, the drink came in a 12 oz can. Today it comes in an 8.9 oz can. But I think that was caused by global warming”...

So, you noticed that, eh! It has been happening for a while now and to some products which have also gone way up in price. Just wait until we can’t afford our electricity because of not being allowed to use our now clean coal. How can anyone not think this is a plan to destroy our nation which means destroying most Americans. No logic on earth can level with the idea of destroying your own people..You save your hatred for your enemies. I guess those of us who love this nation and are distressed over the “revolution,” are the enemies.


44 posted on 06/21/2014 4:30:25 AM PDT by jazzlite (esat)
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To: FredZarguna

The bogus inflation stats are insulting and meaningless because they eliminate all the costs connected to the activities of daily living..The must have items required to survive. I don’t need a new sofa. I need to feed my family and be able to buy gas for my car so that I can do my job and go to the grocery store.


45 posted on 06/21/2014 4:35:11 AM PDT by jazzlite (esat)
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To: VerySadAmerican

...”Wife and I are in the same boat. Every month we’re dipping into our savings. If we scrimp all we can we’ll run out of savings in about 4 years. And that’s only if nothing major breaks like the AC or the car or our bodies. I know we’re better off that a lot of people and we’re grateful for that. But it’s getting very scary. And it’s going to get worse before, or if, it ever gets better”...

The day is not far off when people will have to double up in their homes, either with family or with friends. Also, people will need to get back to “soup beans and cornbread,” which I was reared on. Actually, it provides good protein, but people will not like giving up fast food. We are living in a volatile time and the country is sick of the politically elite who have brought all this down on our heads.


46 posted on 06/21/2014 4:39:36 AM PDT by jazzlite (esat)
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To: george76

-——everything else-——

I don’t buy much any more, Don’t need to.

But yesterday I went to Walmart to check for popping bugs, I need them to slay the bluegills with my fly rod. They had an assortment for $11.70 . That seemed expensive, very expensive even tho a similar assortment at Bass Pro Shop was twice that price.

As I recall the price for a similar assortment year before last was around $8. There was a sizeable increase.

I have been predicting the inflation for 2 years now because it is the only way to reduce the national debt. It must be inflated away. The rate must be as high as can be tolerated. In my mind that is <7% .

There is a hue and cry to increase the minimum wage. There is a war on coal. Both are tactics to induce and increase inflation. The former is to create general wage inflation and the latter for energy. An increase in these two economic factors will force prices to rise on everything, all across the board.

Don’t buy debt, buy equities. A mortgage today will make you money


47 posted on 06/21/2014 4:42:07 AM PDT by bert ((K.E. N.P. N.C. +12 ..... Obama is public enemy #1)
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To: cherry

...”you have to fight to get raises in this economy, at least in the private sector....
and the raises don’t even coverage just the rise in food prices....let alone everything else....

only thing to do is buy on sale, stock up on sale....reuse, and recyle...”...

And, take a hard look at your vote. Not everyone in Washington is far left..It is time to ferret out those with Communist leanings..At least do not vote for them in the next election. Do your own research and find the most truthful media outlets to get information from. I would avoid the major networks..NBC, ABC, and CBS, plus CNN and MSNBC. Although I do not agree with everything I get from FOX, they are by far the most accurate at reporting on what actually is happening to us day in and day out. The others do not report on major events important to most Americans. The 4th of July is just around the corner. I will be going to see Dinesh d’Souza’s film, America, Imagine a World Without Her. He is being persecuted right now by our current government and everyone knows it is because he is educating us about our nation through these films. The central core involved in the fall of great nations is economic, but preceding such an economy as we have is moral and political corruption. It is time to try in every way to educate those among who know nothing about the different forms of government and the consequences of each to the people they serve.


48 posted on 06/21/2014 4:53:07 AM PDT by jazzlite (esat)
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To: cherry

We have seen an big up tick in grocery bills. Our church does a food pantry, and it has a much larger client list than it did 3 yrs ago. We are in a flood plain recovering area. Madrid Fault line, Tornado alley to boot. Which means all those insurances went UP.

If it is not on sale, doesn’t have a coupon, no fuel points, unless it is a dire necessity it is skipped. More store brands. Looking in the freezer at the Commissary from frozen meats marked down. As that is the biggest food expense. Next to $4 box of cereal or $2.50 half gallon of milk, Margarine mow cost as much as butter, and TP. Charities have been cut off, with the Exception of my monthly donation to FR. Even zip lock bags that do not contain meat get washed and reused until they wear out.

On target with stock up, but remember to rotate so they don’t go out of date. Margarine bowels are excellent left over containers for soup to freeze if you make a big pot.


49 posted on 06/21/2014 5:00:34 AM PDT by GailA (IF you fail to keep your promises to the Military, you won't keep them to Citizens!)
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To: FredZarguna
By excluding those two item categories from the CPI>

The CPI includes food and energy costs. That is the CPI used for pensions and SS.

http://www.bls.gov/news.release/cpi.nr0.htm

While they do calculate and publish the "core CPI" without food and energy, along with many other indexes, that is not the one used for pensions and SS.

50 posted on 06/21/2014 5:27:24 AM PDT by thackney (life is fragile, handle with prayer)
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