Monday , 24 April 2017


there is no inflation, There is No Inflation, THERE IS NO INFLATION! Yeah, Sure!

The government tells us there is no inflation. That’s because the government’s “official” numbers exclude foodinflation and energy prices! How ridiculous is that?

So says Michael Lombardi (ProfitConfidential.com) in edited excerpts from his original article* entitled No Inflation? Why Breakfast Prices Are Going Up?

The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!)www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (sample here; register here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.

Lombardi goes on to say in further edited excerpts:

Since November of last year coffee prices have gone up 110% (see chart below) and your cereal is going to cost you more, too. Since February, wheat prices are up more than 22%. If you like eggs for breakfast, I’ve got more bad news for you; eggs are rising in price as well, up 13% in the New York region in the first quarter of 2014 compared to the first quarter of 2013. (Source: U.S. Department of Agriculture, April 15, 2014.).

Coffee-Spot-Price-Chart

Aside from food, gasoline prices are also moving higher. As the chart below shows, since November, gasoline prices have gone up 20%. Higher gas prices means it costs more to deliver goods to the end user [which is] a signal that goods in general could be rising in price.

Gasoline-Unleaded-Spot-Price-Chart

Non-price Inflation

It’s not just prices rising. In many cases, while prices seem to be the same, the actual size of the container is getting smaller. This is a prime example of non-price inflation.

Effect on Buying Power

As inflation continues to rise, it will kill the buying power of the average American Joe because incomes in the U.S. economy are not keeping up with inflation. Rising inflation puts severe pressure on disposable income as more buys less. That means the saving rate will go down. It’s the spiral effect: the more inflation rises, the more severe the problems.

If anyone ever thought the Federal Reserve could print $4.0 trillion out of thin air and inflation would not be a problem, they obviously never studied the history of economics. Every economy in the world that has printed mass amounts of its money (and none have printed more than the U.S.) has encountered inflation as a consequence of money printing. The U.S. will be no different.

Conclusion

Don’t listen to what the official numbers say. Inflation is a big problem already for the U.S. economy – and in an inflationary environment, gold bullion goes up and stock prices go down, because materials cost more and consumers spend less.

I’d adjust my portfolio accordingly for the rapid inflation that awaits us.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.profitconfidential.com/economic-analysis/cost-breakfast-going/

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