The Golden Truth: No inflation?

Sunday, March 7, 2010

No inflation?

Yesterday I bought gas for the first time in about a week. I paid 25 cents/gallon more than a week ago. By my calculation, ($2.90 vs. $2.65) that's 9.4% price inflation. We're entering into a seasonally stronger period of the year for gasoline consumption. I doubt prices will retreat anytime soon.

Last week I picked up some 80/20 ground beef to make tacos. 80/20 has 20% fat and I prefer it for making tacos because of the high flavor factor. It also happens to be the less expensive than lower fat content ground beef. I paid roughly 30% more in price than the last time I purchased ground beef, which was about 2 months ago. I have read several accountings, plus a personal accounting from someone who knows a couple of cattle ranchers, that cattle herds are being reduced because of the high cost of feeding them.

But, oh ya, by the Government's "core" CPI measurement, the one which Bernanke prays to and preaches from - the one which excludes food and energy costs - there is no inflation...

(click on the chart to enlarge)

I hope everyone is beginning to see what's going on here and has made a decision to convert as much of their fiat funny money into gold and silver as they can. I don't know when, but at some point it will be very difficult and expensive and to buy gold and silver that is trustworthy and of which you can take physical delivery.

(click on the chart to enlarge)

4 comments:

EconomicDisconnectSunday, 07 March, 2010
I can confirm the gas price rise here where I am. It is starting to creep back up to where a fill up is actually a chunk of change. At least the retail sales numbers will be higher, HA!
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Dave in DenverSunday, 07 March, 2010
LOL. Good point. CNBC will be all over that cuz they won't report the number ex-gas sales...

At least Vince Wilfork won't be worrying where his next tank of gas is coming from.
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JoeMonday, 08 March, 2010
All one need do is look at the long term inflation chart to understand how insideous the FED is. It was a flat line for 100 years prior to the FED and the mandate of the FED was dollar stability.

How come is it when one of these pubic officials speak the truth is actually 180 degrees out-of-phase with it.

I guess Gold is geting hit as the FED revs up the printing press to buy more debt this week. I am so sick of all the corruption.

Joe M.
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Dave in DenverMonday, 08 March, 2010
re: 180 degrees: MOPE - LOL
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.