Sunday, September 5, 2010

Inflation???

Economist will have you believe that inflation is under control? Really? I say ask their wives who do the grocery shopping and pay the bills. Food prices in real numbers are up by over 25% in the last year. Here is the game. Reduce the amount of product and increase the price. Example: 13 oz. can of coffee that sold for $1.99 is now $2.49 with only 11oz..
Meat prices continue to climb by over 20% in the last year. Milk prices are climbing nationally.
One measurement used is the Consumer price index. Unfortunately, this index does not include energy or food cost. Why one would ask? Because of the volatility in those groups.
Energy cost remain low because demand worldwide has been slow and an eagerness of some countries to explore alternatives to fossil fuels. Food prices continue to climb.
Historically, excessive gov't spending and regulation as been a route cause of inflation, higher interest rates and excessive unemployment. The next shockwave will be the insolvancy of social security. Does anyone want higher payroll taxes? Stay tuned!

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