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)


  1. 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!

  2. 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.

  3. 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.