CNN says inflation is already here.
I couldn’t agree more.
CNN Money reports:
How do we measure the level and duration of inflation, to know whether it will help or hurt? In basic terms, inflation is a rise in prices of basic goods and services over a given period of time. In the United States, the government generally tracks inflation using the Consumer Price Index, or CPI.
Besides measuring inflation, CPI is also used to set income rates for more than 80 million people on entitlement programs. 48 million people on social security, 22 million food stamp recipients, and 4 million civil service retirees, have benefits tied to the CPI.
When inflation increases, so do their benefits. These payments are among the largest non-defense obligations in the federal budget. Not surprisingly, then, the government tends to understate inflation and has changed the way the CPI is calculated nine times since 1996.
That’s right folks – they are a bunch of lying criminal thieves.
Another common inflation metric is the Federal Reserve’s core inflation, which it uses to measure overall inflation. The Fed excludes food and energy prices to smooth out short-term volatility. However, based on government data, food and energy purchases make up 36% of the average consumer’s budget. The Fed’s inflation graph might look nice and smooth, but it’s probably not the best indicator for how your wallet feels when paying bills or buying groceries.
The article the goes on to detail the reactionary measures already being taken by bond traders. Government is not able to move its bonds at low rates. It has to give the bonds higher interest rates because investors are scared of a default.
Finally, in the chart at the top of this page, we’ve plotted the Journal of Commerce Industrial Price Index over the last year. This index charts the price of key commodities that are used in industrial production. The chart is up and to the right, screaming inflation. Commodity inflation will likely lead China to report its first trade deficit in March in 6 years!
As they say, the markets don’t lie, people do (or government statistics as the case may be). Based on the evidence above, we’re sticking with our inflation call — until the markets, and the data, tell us different.
The tyrannical autocrats you call the government are busy blowing up the dollar and moving as much money as possible into the coffers of the rich elitists on Wall Street before they blow the whole thing out.
Get your money out of the markets now and start taking physical delivery of precious metals, because that’s all that’s going to be left after paper becomes worth less than the trees its made out of.