Tag Archive: Inflation


Despite Decline In CPI, Food Index Increases In December

 

 

 

 

 

 

” Despite a decline in the overall Consumer Price Index (CPI) in December, the food index increased and the price index for meats, poultry, fish and eggs hit a record high, according to data released today from the Bureau of Labor Statistics (BLS).

  According to the BLS, “The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.4 percent in December on a seasonally adjusted basis. Over the last 12 months, the all items index increased 0.8 percent before seasonal adjustment.”

“ The gasoline index continued to fall sharply, declining 9.4 percent and leading to the decrease in the seasonally adjusted all items index,” said the BLS.

“ The fuel oil index also fell sharply, and the energy index posted its largest one-month decline since December 2008, although the indexes for natural gas and for electricity both increased,” said the BLS.

“ The food index, in contrast, rose 0.3 percent, its largest increase since September.” “

 

 

    Perhaps this has something to do with the record high food prices , after all Obama did promise that “electric prices would necessarily skyrocket” …

 

 

 

 

 

 

 

This is one promise candidate Obama has kept: Price of Electricity Hit Record High in U.S. in 2014

 

 

Electricity Price Index Hit All-Time High in 2014

 

 

 

 

CNS News has the details

 

 

 

 

 

 

 

 

 

 

$4.20 Per Pound: Price Of Ground Beef Climbs To Another Record

 

 

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” The average price of a pound of ground beef climbed to another record high — $4.201 per pound — in the United States in November, according to data released today by the Bureau of Labor Statistics (BLS).

  In August 2014, the average price for a pound of all types of ground beef topped $4 for the first time, hitting $4.013, according to the BLS.  In September, the average price jumped to $4.096 per pound, and in October, the average price climbed to $4.154 per pound. In November, the average price hit the highest price ever recorded — $4.201 per pound.

  A year ago, in November 2013, the average price for a pound of ground beef was $3.477 per pound. Since then, the average price has increased 20.8 percent in one year.

  Five years ago, in November 2009, the average price of a pound of ground beef was $2.062, according to the BLS. The price has since climbed by $2.139 per pound, or 103.7 percent.”

 

Read more at CNS News

 

Below is a list of average grocery prices and other necessary expenses by year from 2008 to 2014 …

 

COL 2008-2014

 

 

   This is a list from one source that we could find quickly and while we find some of the statistics to be dubious in the extreme it does convey the basic idea that , contrary to what the inflation figures provided by the State claim , prices are out of control . Heck of a job Barack …

 

 

 

 

 

 

Whatever Happened To Inflation?

 

 

 

 

” Since 2008, the Federal Reserve has been trying to stave off economic disaster with an unconventional monetary policy tool known as quantitative easing. By buying financial assets from commercial banks and other institutions, the Fed has massively expanded the money supply-quadrupling it since the practice began.

  Many economists, particularly followers of the Austrian school, deplored the practice and predicted that the unprecedented currency and asset price manipulation would lead to huge and damaging price inflation. Reason was among them, declaring on our October 2009 cover: “Inflation Returns!” A group of free market economists were asked: “Has the time come to stockpile canned goods and pick up a wheelbarrow for transporting currency, or should we be afraid of the opposite-a prolonged contraction that causes prices to crash?”

  Six years later, official consumer price index inflation sits at just 2 percent annually from July 2013 to July 2014, the latest period for which figures are available. This is identical to the rate for the previous year.

  We asked four economists and market analysts to revisit what they originally predicted would happen after quantitative easing and assess whether (and why) they were right. Analyst Peter Schiff sticks to his guns, saying that any “claims of victory over inflation are premature and inaccurate. Inflation is easy to see in our current economy, if you make a genuine attempt to measure it.” Economist Robert Murphy believes we are in a “calm before the storm” and is “confident that a day of price inflation reckoning looms.” Contributing Editor David R. Henderson writes that the “financial crisis has brought such major changes in central banking that uncontrolled inflation from discretionary monetary policy is not as great a danger as it once was,” though he remains critical of the Fed’s growing powers. And economist Scott Sumner claims victory for the “market monetarists,” noting that both Austrians and Keynesians have been proven wrong by events, and urging both sides to “take markets seriously.” “

 

Reason has more

 

 

 

 

 

 

 

 

 

$4.15 Per Pound: Ground Beef Climbs To Another Record High

 

 

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” The average price for a pound of ground beef climbed to another record high$4.156 per pound — in the United States in October, according to data released today by the Bureau of Labor Statistics (BLS).

  In August, the average price for a pound of all types of ground beef topped $4 for the first time, hitting $4.013, said the BLS.  In September, the average price jumped .083 cents to $4.096 per pound, an increase of 2.1 percent in one month.

  In October, which is the latest data from the BLS, the average price for a pound of ground beef ($4.156) increased 1.4 percent from September.

  A year ago, in October 2013, the average price for a pound of ground beef was $3.389 per pound. Since then, it has climbed 76.5 cents, or about 22.6 percent in one year.

  Five years ago, in October 2009, the average price for a pound of ground beef was $2.177, according to the BLS. The price has since climbed by $1.977 per pound, or 90.8 percent. “

 

CNS News

 

 

 

 

 

 

 

 

 

 Why Hillary Clinton Would Be A One-Term President, According To Peter Thiel

 

 

 

 

   The genius behind PayPal , Peter Thiel , speaks with Glenn Beck on the foolish monetary policy bankrupting America and the likelihood of a Clinton presidency being a one term affair .

 

 

 

 

Under Obama, Only The Richest 10 Percent Saw Incomes Rise

 

 

 

” Under President Obama, the richest 10 percent were the only income group of Americans to see their median incomes rise, according to a survey released this week by the Federal Reserve.

  The Fed data covered the years 2010-2013, during which period Mr. Obama constantly campaigned against income inequality and won re-election by painting his Republican rival as a tool of Wall Street plutocrats.

“ Data from the 2013 [Survey of Consumer Finances] confirm that the shares of income and wealth held by affluent families are at modern historically high levels,” the report said in noting that the median income fell for every 10-percent grouping except the most affluent 10 percent. 

“ The 2013 SCF reveals substantial disparities in the evolution of income and net worth since the previous time the survey was conducted, in 2010,” the report stated. The SCF is conducted by the Federal Reserve triennially and compiles information about family incomes, credit use, net worth and finances.”

 

Washington Times

 

 

 

 

 

 

 

 

 

Why You Feel Poorer

 

 

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” You feel poorer because you are poorer.

  In the last fourteen years, has your income increased over 50%? If you think it has, has it done so after taxes? Even if it has, you likely have not kept up in terms of inflation.

  If you are a retiree, living on fixed income, a pension or bonds, you certainly have become poorer. If you had bought the Dow-Jones on 12/31/1999 you would have entered at about 11,500. It closed last week at less than 17,100. That would have been an appreciation of 6,600, better than 50%. But, of course, that was before taxes.

  As a retiree, you have seen your purchasing power stolen by Fed policies. Whether you invested in fixed income or equities, you lost ground. Anyone in that position has seen their lives become poorer despite a lifetime of successful work and careful financial planning.”

 

 

    As it stands now , no matter how hard you work and save , you’ll never get ahead , not with the present monetary policies put in place at the behest of the Fed and the government . The authorities are systematically destroying all that the American public has worked so hard to attain . The American dream is not being killed by China … It is a victim of filicide

 

 

” For those still working, most are losing purchasing power each year. Wages are not keeping up with inflation, even the understated numbers reported by government. In short, the decline of a once-great economic power is well underway. The country is no longer growing enough to raise everyone’s standard of living.

  Government has killed the golden goose and in an attempt to hide the obvious is debauching the dollars. Government tries to hide their own failure with phony statistics and a welfare state designed to placate the masses. Bread and circuses are deceptions not progress.”

 

 

Read the rest

 

 

 

 

 

 

The Perfect Response From Tickld

 

 

This graduate pretty much sums up the current state of “Higher Educational” affairs .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22 ‘Fun Facts’ On The Obama Economy People Should Know Before

(Or After) The State Of The Union

 

 

 

” Here are a few facts to bear in mind when we’re all regaled about Obama’s ‘historic’ presidency at his State of the Union address:

  1. The Number Of Americans That Have Joined The Food Stamp Program Since
    Obama Took Office: 19.4 Million.
  2. The Number Of People Unemployed At The End Of Obama’s Fifth Year As
    President: 10.4 Million.
  3. The Number Of People Working Part-Time That Would Like To Work Full-Time: 7.8 Million.
  4. The Number Of People That Have Entered Poverty Since 2008: 6.7 Million.
  5. Americans Who Received Cancellation Notices For Their Health Plans
    Due To ObamaCare After Obama Promised They Could Keep Their Plans In His 2010 State Of The Union Address: 5 Million.
  6. The Number Of Americans Struggling With Long-Term Unemployment Of 27 Weeks Or Over: 3.9 Million.
  7. The Increase In Americans Struggling With Long-Term Unemployment Since Obama Became President: 1.2 Million.
  8. Construction Jobs (aka “Shovel-Ready Jobs”) Lost Since Obama Took Office: 721,000.
  9. Manufacturing Jobs Lost Since Obama Took Office: 528,000.”

 

For the real State Of The Union read the rest at IJR 

 

 

 

 

 

 

 

 

From Rare

 

 

 

 

 

 

 

 

 

 

Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination

 

 

” If you believe that there is high inflation in the United States, you are just imagining things.  That is the message that the U.S. government and the Federal Reserve would have us to believe.  You might have noticed that the government announced onWednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year.  This is one of the smallest cost of living increases that we have ever seen.  The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now.  Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is.  The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower.  According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.  But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control.  Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing.  It is a giant scam, but most Americans are falling for it.”

 

Illustration by Jeff Parker

 

 

 

 

 

 

 

 

Boring, But Bad — The Problem Of The Federal Reserve

 

 

 

 

” I’ve always avoided reporting on the Federal Reserve. I know it’s more important than much of the stuff I cover, but it’s so boring. How can I succeed on TV reporting on the Fed? Fed chairs even work at being dull.

Alan Greenspan said he tried to be obscure because he didn’t want to spook markets. He called his obfuscation “Fedspeak.” It’s a far cry from the clarity of his language — and principles — when he was young and a disciple of libertarian Ayn Rand.

Outgoing Fed Chairman Ben Bernanke and his likely successor, Janet Yellen, are almost as boring.

But we should watch what they do. The Fed can destroy your savings and your future. The current crew of Fed bureaucrats has raised the Fed’s balance sheet to a stunning 4 trillion dollars.

As Sen. Rand Paul‘s father, retired congressman Ron Paul, put it, “No secret cabal of government officials should have the authority to create money out of thin air.” “

 

 

 

 

 

 

 

 Debt Ceiling Truth

 

 

 

 

” You are about to learn one of the biggest secrets in the history of the world… it’s a secret that has huge effects for everyone who lives on this planet. Most people can feel deep down that something isn’t quite right with the world economy, but few know what it is.”

 

 

 

 

 

 

 

They’ll Turn Us All In To Beggars , ‘Cause They’re Easier To Please

 

 

 

” Yet as fewer labor hours go into producing goods, workers work longer to buy the goods. Using the hour as a measure of costs, we can calculate how much more work a wage earner must produce to buy milk today. But it’s harder to measure the reduction of work that goes into production. We know that it’s less by empirical evidence, but we only get a sense of it.

By switching to gold, we can measure both wages and prices on an absolute scale—in ounces—and we can make precise comparisons. To convert the price of anything to gold, just divide the price by the current gold price. For example, in 2011 if a big-screen TV was $785, then divide that by the gold price of that year; the television set cost half an ounce of gold.”

 

 

 

The bottom line is that, in terms of gold, wages have fallen by about 87 percent. To get a stronger sense of what that means, consider that back in 1965, the minimum wage was 71 ounces of gold per year. In 2011, the senior engineer earned the equivalent of 63 ounces in gold. So, measured in gold, we see that senior engineers now earn less than what unskilled laborers earned back in 1965.

That’s right: today’s highly skilled professional is making less in real, comparative terms than yesterday’s unskilled worker.”

 

 

 

” When measured in dollars, wages and prices appear to be rising and, comparing wages to prices, we see only a small loss of purchasing power. However, prices do not tell the whole story, because they reveal nothing about costs. Costs also fell and this explains why the apparent drop in the real wages seems small.

But measured in gold—and this is crucial to understanding why we need a gold standard—we see reality with clarity. Incomes are about one tenth what they were in the 60’s. ” 

 

 

HT/Instapundit

 

 

 

 

 

 

 

Does The Dollar Have What It Takes ?

 

 

” We use the term “reserve currency” when referring to the common use of the dollar by other countries when settling their international trade accounts. For example, if Canada buys goods from China, it may pay China in US dollars rather than Canadian dollars, and vice versa. However, the foundation from which the term originated no longer exists, and today the dollar is called a “reserve currency” simply because foreign countries hold it in great quantity to facilitate trade.

The first reserve currency was the British pound sterling. Because the pound was “good as gold,” many countries found it more convenient to hold pounds rather than gold itself during the age of the gold standard. The world’s great trading nations settled their trade in gold, but they might hold pounds rather than gold, with the confidence that the Bank of England would hand over the gold at a fixed exchange rate upon presentment. Toward the end of World War II the US dollar was given this status by international treaty following the Bretton Woods Agreement. The International Monetary Fund (IMF) was formed with the express purpose of monitoring the Federal Reserve’s commitment to Bretton Woods by ensuring that the Fed did not inflate the dollar and stood ready to exchange dollars for gold at $35 per ounce. Thusly, countries had confidence that their dollars held for trading purposes were as “good as gold,” as had been the Pound Sterling at one time.

However, the Fed did not maintain its commitment to the Bretton Woods Agreement and the IMF did not attempt to force it to hold enough gold to honor all its outstanding currency in gold at $35 per ounce. The Fed was called to account in the late 1960s, first by France and then by others, until its gold reserves were so low that it had no choice but to revalue the dollar at some higher exchange rate or abrogate its responsibilities to honor dollars for gold entirely. To it everlasting shame, the US chose the latter and “went off the gold standard” in September 1971.”

 

 

 

 

 

 

 

 

 

Jobs, Debt And Poverty All Are Up

 

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” America is still gaining jobs under President Obama, but millions more live in poverty, typical household incomes have not kept pace with inflation, and the federal debt is up nearly 90 percent and on pace to double before he leaves office. Stockholders, meanwhile, are far wealthier than they were the day he was sworn in.

U.S. oil production continues to boom, as do wind and solar power, while dependence on foreign oil keeps dropping. International opinion of the United States has slipped a bit, but generally remains far higher than before he took office, except in the Muslim world, where it has gotten even worse.

These are among the findings in our latest update of “Obama’s Numbers.”

 

 

Take these numbers with a grain of salt . 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Courtesy Of Rightwing Art

 

 

 

 

 

 

Pricey Beef Puts Heat On U.S. Grilling Season

 

 

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” As Americans prepare for Memorial Day—the official kickoff to a summer grilling season of burgers and T-bones—rising beef prices have some consumers balking in the grocery aisles.

Retail beef prices are widely expected to set new records in coming weeks after wholesale prices, or the amount meatpackers charge sellers for beef, hit an all-time peak this past week.

After achieving new highs for three weeks, choice-grade beef, the most common variety in the U.S., jumped to $2.1137 a pound Thursday, according to the U.S. Department of Agriculture. That level broke a decade-old record for wholesale prices set in 2003, when a case of mad-cow disease in Canada led to a spike in export demand for U.S. beef.”

 

 

 

 

 

 

 

11 Reasons Why The Federal Reserve Should Be Abolished

 


” If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. 

The Fed creates our “booms” and our “busts”, and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn’t our economy function much more efficiently if we allowed the free market to set interest rates?  And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to “coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. 

So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nations that belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated.

The following are 11 reasons why the Federal Reserve should be abolished…

 

 

#2 The Federal Reserve Is Systematically Destroying The Value Of The U.S. Dollar

 

The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created in 1913.

If you do not believe this, just check out the inflation chart in this article.

The Federal Reserve systematically penalizes those that try to save their money.  Inflation is a tax, and the value of each one of our dollars goes down a little bit more every single day.

But over time, it really adds up.  In fact, the value of the U.S. dollar has fallen by 83 percent since 1970.

Anyone that goes to the grocery store on a regular basis knows how painful inflation can be.  The following is a list that shows how prices for many of the things that we buy on a regular basis absolutely skyrocketed between 2002 and 2012

Eggs: 73%

Coffee: 90%

Peanut Butter: 40%

Milk: 26%

A Loaf Of White Bread: 39%

Spaghetti And Macaroni: 44%

Orange Juice: 46%

Red Delicious Apples: 43%

Beer: 25%

Wine: 60%

Electricity: 42%

Margarine: 143%

Tomatoes: 22%

Turkey: 56%

Ground Beef: 61%

Chocolate Chip Cookies: 39%

Gasoline: 158%

Even the price of water has absolutely soared in recent years.  According to USA Today, water bills have actually tripled over the past 12 years in some areas of the country.

So how can the Federal Reserve get away with claiming that we are in a “low inflation” environment?

Well, what Ben Bernanke never tells you is that the way that the government calculates inflation has changed more than 20 times since 1978.

The truth is that the real rate of inflation is somewhere between five and ten percent right now, but you will never hear about this on the mainstream news.” 

 

 

Read them all

 

 

 

 

 

 

 

U.S. Homeownership Rate Falls to Lowest Since 1995

 

 

 

 

” The U.S. homeownership rate fell to the lowest in almost 18 years, reflecting rising demand for rentals and investor purchases in the housing market.

The share of Americans who own their homes was 65 percent in the first quarter, down from 65.4 percent a year earlier and the lowest level since the third quarter of 1995, the Census Bureau reported today. The vacancy rate for rented homes dropped to 8.6 percent from 8.8 percent a year earlier, while vacancies for owner-occupied houses fell to 2.1 percent from 2.2 percent.”

 

 

 

 

 

 

 

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Trust In Gold Not Bernanke As U.S. States Promote Bullion

 

 

 

 

   Yesterday we reported on Arizona’s End Run Around The Fed . Today we are happy to report that Arizona’s move is far from an isolated occurrence . Nearly a dozen other states have seen the light and are moving to allow their citizens some means of protecting their wealth before Obama and Bernancke collapse the whole dollar house of cards . 

 

 

” Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.

Arizona is poised to follow Utah, which authorized bullion for currency in 2011. Similar bills are advancing in Kansas, South Carolina and other states.

“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”

Bernanke has pushed interest rates to near zero since the 18-month recession that began in December 2007. The Fed said in March it would continue buying $85 billion in securities each month in a program known as quantitative easing that has ballooned its assets beyond $3 trillion and is aimed at keeping long-term borrowing costs low to support economic growth.”

 

” In Texas, lawmakers are considering a measure supported by Republican Governor Rick Perryto establish the Texas Bullion Depository to store gold bars valued at about $1 billion and held in a New York bank warehouse. The gold is owned by the University of Texas Investment Management Co., or Utimco, which took delivery of 6,643 bars of the precious metal in 2011 amid concern that demand for it would overwhelm supply.

The proposed facility would also accept deposits from the public, and would provide a basis for a payments system in the state in the event of a “systemic dislocation in a national and international financial system,” according to the measure.

Should Texas take such a step, it would offer sovereign backing for deposits and make buying and storing gold easier, said Jim Rickards, senior managing director at Tangent Capital Partners LLC in New York and author of “Currency Wars: The Making of the Next Global Crisis.” He said the coin measures, while impractical, have symbolic value.

“We are seeing a distinct movement back to a world where gold is considered money,” Rickards said.

The U.S. Constitution bars states from coining money and also forbids them from making anything except gold and silver coin tender for paying debts. Advocates say that opens the door for the states to allow bullion as legal tender. The measure being considered in South Carolina would recognize foreign or domestic minted coins as legal tender.

In Utah and some other states, the measures also eliminate state capital gains or other taxes on the coins.” 

 

 

 

 

The Assault On Gold: The Fed’s Attempt To “Scare People Away” From Gold And Silver

 

 

 

” For Americans, financial and economic Armageddon might be close at hand. The evidence for this conclusion is the concerted effort by the Federal Reserve and its dependent financial institutions to scare people away from gold and silver by driving down their prices. 

The Federal Reserve is creating $1 trillion new dollars per year, but the world is moving away from the use of the dollar for international payments and, thus, as reserve currency. The result is an increase in supply and a decrease in demand. This means a falling exchange value of the dollar, domestic inflation from rising import prices, and a rising interest rate and collapsing bond, stock and real estate markets.

The Federal Reserve’s orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the banks’ balance sheets.

When the Federal Reserve can no longer print due to dollar decline which printing would make worse, US bank deposits and pensions could be grabbed in order to finance the federal budget deficit for couple of more years.  Anything to stave off the final catastrophe.

The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced.

By its obvious and concerted attack on gold and silver, the US government could not give any better warning that trouble is approaching. The values of the dollar and of  financial assets denominated in dollars are in doubt.

Those who believe in government and those who believe in deregulation will be proved equally wrong. The United States of America is past its zenith.  As I predicted early in the 21st century, in 20 years the US will be a third world country. We are halfway there.”