Posted on 05/16/2011 10:23:53 AM PDT by Graneros
New inflation figures were released by the government last week, and the news was not good. The headline inflation number was 3.2% in the 12 months that ended in April. That is more than a percent above the Federal Reserve’s “target” rate of 2% and the first time it has been more than 3% in over than 2 ½ years. Of course, the accounting gimmicks used by the Bureau of Labor Statistics (BLS) understate true inflation, so things look better than reality. Nonetheless, in the latest report from economist John Williams of Shadowstats.com, even the government’s own “official” numbers will likely show double digit inflation in the next three months or so. The reason is continued money printing in the form of another round of Quantitative Easing (QE) by the Fed to prop up the struggling economy. Williams said, “The underlying pace of official inflation is accelerating, and could move into double-digits in third-quarter 2011. Preceding or coincident with that likely will have been some move to QE3 by the Fed and intense—if not panicked—selling of the U.S. dollar and dollar-denominated assets. Such a circumstance could be a base from which a hyperinflation might begin to unfold with some rapidity.”
And get this, inflation is already in double digits, according to Williams, if it was calculated the way BLS did it more than 30 years ago. Williams said, “. . . based on reporting of 1980, the April 2011 annual inflation rate would have been about 10.7%.” But, the double digit inflation story is not the one the mainstream media likes to tell. Instead, it usually focuses on what the government calls “core” inflation that excludes food and energy. The “core” inflation rate is .2%. Who lives in a world where the core of existence is not food and energy?
(Excerpt) Read more at usawatchdog.com ...
Good for the seniors so they get a raise this year. Same with the military retirees who have lost out for two years. You have to look at the bright side of things folks.....lol.
Inflation with a collapsed real estate market? I don’t think so.
Not sure that military retirees are going to get an increase. I would think that the freeze Urkel announced on federal salaries includes federal retirees which include military retirees.
Anybody who shops on a regular basis already knows this.
Not sure that military retirees are going to get an increase. I would think that the freeze Urkel announced on federal salaries includes federal retirees which include military retirees.
That would be really crappy then. They are the last (after active military of course) folks who should lose the increase.
>>Inflation with a collapsed real estate market? I don’t think so.<<
Wanna bet? Imagine being hugely underwater in your house as your food, gas, clothing, etc. goes up in price 20% every year. And that is not inflation. Inflation is the devaluation of the currency, which is happening hugely as they print, literally and digitally, all the money they want to. Might as well use leaves for money - at least that will be the case in the next year or two.
Manipulation temporarily stopped the silver run. Expect it to return, with a vengeance. It is a bargain right now.
I agree.
Its the price of commodities.
There is no external competition in real estate, whereas there is a ton of competition in cotton, beans, wheat, corn, gold, silver, coal, oil, etc. You are not going to compete with China to buy the 3 bedroom ranch at the end of the street.
So, there will not be inflation in the housing market. In fact if you really want to be depressed, see what your house would be valued in gold, compared to last year.
The main cause of inflation right now is still the “do Nothing” “Restrict Supply” approach to energy. Monetary policy is not driving inflation, this is oil based.
You can get the best of both worlds, declining housing prices in the midst of overall price inflation. ouch!
“Good for the seniors so they get a raise this year. Same with the military retirees who have lost out for two years. You have to look at the bright side of things folks.....lol.”
Who will pay for those COLAs? Do the COLAs get paid from magical stimulus dollars? Perhaps it may be good for these groups in the short run but it will be another blow to the country’s fiscal outlook in the long run.
This is Bush/Cheney/Haliburton’s fault.
QE2 ends 6/30/11
So I guess that’s doomsday
Devaluation of a currency is not a cause of inflation it is a RESULT of inflation. In true inflation the price of housing escalates as rapidly as everything else.
Food, and clothing have not gone up by 20%. Fuel price increases are not the result of monetary disturbances but the result of supply suppression due to Urkel’s anti-energy policies. Food prices are high due to another non-monetary issue, the diversion of food stocks into automobile fuel tanks.
Monetary policy changes generally takes about two years to take effect. So it many be about ready to take off but so far it has not been much of an issue.
And they remember the big losses the Japanese investors took when they bought Pebble Beach.
“Inflation with a collapsed real estate market? I don’t think so.”
I do. If not for the buckets of money they’ve been dumping into the leaky housing tub, prices would be a lot, lot lower.
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