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There Is No Inflation...

Tyler Durden's picture


... for those who are lucky enough not to drive a gas consuming vehicle. Alas, with well over 254 million registered passenger vehicles in the US as of 2007, that's probably not that many. As for CNBC's claim that food inflation is somehow "taking care of itself" due to demand destruction, they may well be all too right: a few more revolutions, and resulting "disappearances" of protesters, and there will be far less organic demand for such a headline CPI nuisance as food.

The AAA gas index:


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Tue, 03/01/2011 - 13:50 | 1007694 redpill
redpill's picture

I never thought of tens of thousands of dead Libyans as "self correcting" demand destruction, but I guess when you're that far gone it makes some sort of sense.

Tue, 03/01/2011 - 13:52 | 1007708 Jaw Knee Cash
Jaw Knee Cash's picture

demand destruction... the new and improved collateral damage.

Tue, 03/01/2011 - 13:59 | 1007722 redpill
redpill's picture

At least collatoral damage always got the condescending adjective "regrettable" tied to it; now a bunch of dead Arabs is a cheap price to pay for fewer mouths to feed according to central banking cheerleaders.


Tue, 03/01/2011 - 14:04 | 1007780 Jaw Knee Cash
Jaw Knee Cash's picture

Good point. I like intentional collateral damage much better though.

Tue, 03/01/2011 - 15:36 | 1008226 whatz that smell
whatz that smell's picture

collateral damage?

when the derivatives go ka-blooey and destroy the value of the asset?

blessed is the bernank for he knows not what he does!

Tue, 03/01/2011 - 14:14 | 1007835 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture

Yep you're right Red.


So Say We All!

Tue, 03/01/2011 - 14:20 | 1007877 jus_lite_reading
jus_lite_reading's picture

>>>>>>   POLL    <<<<<<<<

If you knew in advance of a pending earthwide cataclysm, would you sell your stocks and party like it's 1999?

Tue, 03/01/2011 - 14:49 | 1008041 Mad Max
Mad Max's picture

Uh, yeah!

Tue, 03/01/2011 - 13:50 | 1007698 Cyrano de Bivouac
Cyrano de Bivouac's picture

Dinty Moore beef stew bitchez!

Tue, 03/01/2011 - 13:59 | 1007756 SheepDog-One
SheepDog-One's picture

'Bout $4 a can now.

Tue, 03/01/2011 - 14:14 | 1007850 Fish Gone Bad
Fish Gone Bad's picture

I bought a case of it about a year ago on clearance for $1/can.

Tue, 03/01/2011 - 13:51 | 1007712 AN0NYM0US
AN0NYM0US's picture

but Rosie told us there would be deflation

Tue, 03/01/2011 - 16:12 | 1008431 curbyourrisk
curbyourrisk's picture

In the long run, that will be the only thing that saves us.  I still declare that we are going through price REAL inflation.  REAL inflation is sustainable....this is not as we are not seeing rising wages.


People need to re-define what inflation it.  It is not rising money IS RISING WAGES.  Without the sustainability of rsising prices, they are nothing more than mere price corrections.  BUT, can we afford to live through the current price corrections???  Still to be seen!!!!!!!


Wed, 03/02/2011 - 07:44 | 1010595 Freewheelin Franklin
Freewheelin Franklin's picture

People need to re-define what inflation it.

What's wrong with Palyi's definition?


Wed, 03/02/2011 - 01:16 | 1010326 long-shorty
long-shorty's picture

Rosie was right. Er, I mean, he never said he was wrong.

Quick quiz; name the two Jews who have never been wrong.......

Rosie and Jesus. ;-)

Tue, 03/01/2011 - 13:52 | 1007717 Long-John-Silver
Long-John-Silver's picture

Don't forget the Iranians in the demand destruction equation.

Tue, 03/01/2011 - 13:53 | 1007720 Jaw Knee Cash
Jaw Knee Cash's picture

I wonder if The Bernank will have trouble sleeping tonight?

Tue, 03/01/2011 - 14:08 | 1007795 Cash_is_Trash
Cash_is_Trash's picture

That deranged punk shouldn't have much trouble...

Yet, I look around my office and talk to people, nobody knows about PM's, nominal vs real, fractional and full reserve banking, inflation...

Therefore, I'm not surprised our enemy is this massive. Yet, in spite of the bankstas the Austrian School of Economics has proven to be fact.

May the Keynesian experiment be cast into hell for it has destroyed lives, wealth and the futures of our children.

Tue, 03/01/2011 - 14:31 | 1007942 Don Birnam
Don Birnam's picture


Tue, 03/01/2011 - 15:30 | 1008204 Jim in MN
Jim in MN's picture

Plus good.

Tue, 03/01/2011 - 15:43 | 1008237 Zero Govt
Zero Govt's picture

our enemy is a Govt Dept and a quango called the Fed, not much to blow over if truth be told .... and we now have an anti-Fed virus in the Govt Dept called Ron Paul, no relation to the Paulsons either which is handy

Tue, 03/01/2011 - 22:42 | 1009971 vxpatel
vxpatel's picture

The enemy is neither theory, rather MONEY. We need a common enemy...

Tue, 03/01/2011 - 13:54 | 1007725 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

Not even a peep from the head spin doctor to re-purpose the no/low inflation lie.

Shameful and undermines credibility.

Tue, 03/01/2011 - 13:57 | 1007738 nathandegraaf
nathandegraaf's picture

Can't lose something you never had. 

Or wait, maybe you can in this economy. 

Tue, 03/01/2011 - 14:12 | 1007823 Cash_is_Trash
Cash_is_Trash's picture

Where's Shameful with his Benny and the Inkjets Avatar?

Tue, 03/01/2011 - 13:57 | 1007733 Joe Davola
Joe Davola's picture

Last night, quicken told me I needed to increase my spending budget for the 4th category this year - it didn't say one word about inflation.

Tue, 03/01/2011 - 13:56 | 1007734 Oh regional Indian
Oh regional Indian's picture

The end of the age of OIL. THe century and a bit of OIL is OVER. And thank goodness for that. Of course, there is enough left to drive th ewar that is looming.

It was an explosive paradigm, fromt he get-go. How could it ever end differently or better?

Oil-jinkies, meet painful withdrawl.


Tue, 03/01/2011 - 13:57 | 1007735 iota
Tue, 03/01/2011 - 14:01 | 1007759 SheepDog-One
SheepDog-One's picture

CHILDREN will be the first to riot!

Tue, 03/01/2011 - 14:35 | 1007957 iota
iota's picture

No I meant the fat tail, not the price.

Tue, 03/01/2011 - 13:58 | 1007736 Mercury
Mercury's picture

The armchair publicist in me is saying:

Just wait until Obama makes the claim that QEs 1-3 inclusive, which sparked worldwide commodity inflation, ultimately achieved what the neo-cons only dreamed of with their military swagger: the demise of half a dozen thug dictators in the Middle East.

Tue, 03/01/2011 - 14:01 | 1007761 disabledvet
disabledvet's picture

That's Dic Tator to you.  And "these are the Tator Tots!" (screaming in background followed by further gunfire.)  Now let's ROCK N' ROLL!

Tue, 03/01/2011 - 13:58 | 1007740 Id fight Gandhi
Id fight Gandhi's picture

What program is being used to pull up these charts?

Tue, 03/01/2011 - 13:58 | 1007743 Alex Lionson
Alex Lionson's picture

Ben the Richest will print and distribute enough FRNs to cover this minor irritating factor

Tue, 03/01/2011 - 13:58 | 1007744 gwar5
gwar5's picture

Such a relief there's no inflation.

Tue, 03/01/2011 - 13:58 | 1007747 dabullify
dabullify's picture

Ignore all of the government bull shit. Here is the only tool you need to see real price changes:

Tue, 03/01/2011 - 13:58 | 1007749 william the bastard
william the bastard's picture

This is a great opportunity to buy silver and gold before the explosion to new heights.

Tue, 03/01/2011 - 14:09 | 1007803 jomama
jomama's picture

get a job, loser.

Wed, 03/02/2011 - 01:26 | 1010341 akak
akak's picture

This is a great opportunity to buy silver and gold before the explosion to new heights.

Does the truth finally dawn?

Tue, 03/01/2011 - 14:00 | 1007755 topcallingtroll
topcallingtroll's picture

Food and gas are a small part of total monthly expenditures in the USA.

At least here freaking out over just two small parts of monthly expenditures is a tempest in a teapot.

Tue, 03/01/2011 - 14:02 | 1007769 SheepDog-One
SheepDog-One's picture

Right, food and gas are minor expenditures, taking a back seat to IPhone and IPad payments, hi speed internet access, 500 channels of bullshit and streaming Netflix, new LuLuLemon yoga outfits...the REAL necessities for the modern american neadersheep!

Tue, 03/01/2011 - 14:11 | 1007794 knukles
knukles's picture

So sayeth Steve Liesman.
Oh and PS; don't leave out the 100% organic faux hand embossed foam rubber designer yoga mat imported from central China made exclusively by small child slave labor containing no less than 100% of the daily recommended limit of chemically toxic recycled US wastepaper and radioactive isotopes. 

Tue, 03/01/2011 - 14:29 | 1007919 luk427
luk427's picture

+100 SheepDog-One.  CNBC must be paying Santelli some good money to put up with BS that comes out from Leisman's mouth. But thats still not as bad as Schiff taking on 4 of those idiots at once.    

Tue, 03/01/2011 - 15:04 | 1008104 akak
akak's picture

If I ever meet Steve Liesman on the street, that sorry fucker is going down.

Tue, 03/01/2011 - 15:39 | 1008243 TriggerFinger
TriggerFinger's picture

demand destruction!

Wed, 03/02/2011 - 06:50 | 1010563 Miss anthrope
Miss anthrope's picture

well played Knukles! That visual was all over the map, literally......... truth!

Tue, 03/01/2011 - 14:37 | 1007983 Don Birnam
Don Birnam's picture

There must be a carve-out provision for LuLuLemon. No sunset clause.

Tue, 03/01/2011 - 14:07 | 1007796 Arkadaba
Arkadaba's picture

Food and gas are a small part of total monthly expenditures in the USA

For now.

Tue, 03/01/2011 - 14:13 | 1007831 knukles
knukles's picture

So sayeth Steve Liesman

Tue, 03/01/2011 - 14:09 | 1007805 SpeakerFTD
SpeakerFTD's picture

Transportation is like 20%, food is like 15%.   I would consider that significant. 


Tue, 03/01/2011 - 14:13 | 1007837 knukles
knukles's picture

Steve Liesman sayeth he does not concurr whole heartedly.

Tue, 03/01/2011 - 14:07 | 1007793 lieutenantjohnchard
lieutenantjohnchard's picture

here's a tidbit. wife and i have noticed some of the organic (small, local producers) merchandise we buy has been strangely absent from the shelves / fridge at the upscale (better security) grocery store(s) where we trade. we think it's because the price has gotten so high that store is unsure shoppers will step up and buy.

Tue, 03/01/2011 - 14:20 | 1007881 centerline
centerline's picture

Could this be S510 kicking in?  Just a thought.

Tue, 03/01/2011 - 14:26 | 1007913 lieutenantjohnchard
lieutenantjohnchard's picture

not sure what s510 is, but it sounds ominous.

Tue, 03/01/2011 - 15:47 | 1008288 earnyermoney
earnyermoney's picture

Is that a Senate Bill? I thought the Senate passed some law on "Food Safety" at the behest of big agrabusiness. Means to drive the littly guy out of business. Just a guess, could be wrong.

Tue, 03/01/2011 - 14:08 | 1007808 Tell me lies
Tell me lies's picture

The CPI computation is a farce! No food or fuel included in that number? I think the American public has caught on to this.

Who dictates the information included in the overall number? Is it FED speak?  I think, don't pee on my leg and tell me it's raining!

Tue, 03/01/2011 - 14:15 | 1007842 knukles
knukles's picture

Steve Leisman sayeth it's raining.

Tue, 03/01/2011 - 15:06 | 1008111 akak
akak's picture

That's "Liesman".  Steve LIES(,)man.

Tue, 03/01/2011 - 16:33 | 1008575 In Ponzi We Trust
In Ponzi We Trust's picture

You've got that right Tell Me Lies, the CPI has no basis in reality.  I've started keeping track of my household expenses and comparing them to the CPI numbers, and so far my inflation rate is over twice as high as the "official" numbers.  So far in 2011 gas in my neighborhood is up over 17%!  Food jumped 3% in February alone.  My overall cost of living increased 1.82% in Feb and 2.7% for 2011.  I bet when Feb's CPI is released March 17th it will be much lower than reality again. 

For those who are interested, I've posted my inflation numbers at

Tue, 03/01/2011 - 17:37 | 1008972 Tell me lies
Tell me lies's picture

No raining on your leg IPWT. Like the blog as to how it effects you. Why is the Gov able to get away with this skwed number? Or is it the FED'S domain only?


Tue, 03/01/2011 - 14:12 | 1007825 oh_bama
oh_bama's picture

You guys are way too negative. The car sales in Feb was great!

Consumers are buying gas and food without considering their prices!!

Tue, 03/01/2011 - 14:13 | 1007829 william the bastard
william the bastard's picture

You'd be mad not to be buying gold and silver here.

Tue, 03/01/2011 - 14:16 | 1007860 knukles
knukles's picture

What would Steve Liesman do?

Heavy, man.

Tue, 03/01/2011 - 15:29 | 1008198 william the bastard
william the bastard's picture

Cramer's come on board the silver train. So should you.

Tue, 03/01/2011 - 14:13 | 1007840 bbaez
bbaez's picture

MISERY INDEX is being avoided by the current adminstration for election purposes

Tue, 03/01/2011 - 14:15 | 1007851 russwinter
russwinter's picture

The MIT billion price survey is running hot, showing a three month annualized inflation rate of 6%.


Tue, 03/01/2011 - 14:18 | 1007868 oh_bama
oh_bama's picture

but facebook and groupon are hiring engineers with about 15% higher pay than last year!! Try to be patriotic and BTFD!!

Tue, 03/01/2011 - 14:36 | 1007977 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

Would you not have to pay your employees a royal premium to work for and with a bunch of facebook fags?

Tue, 03/01/2011 - 14:18 | 1007872 knukles
knukles's picture

Steve Liesman sayeth it's not official.  (Faux figures.)

Tue, 03/01/2011 - 14:17 | 1007863 the rookie cynic
the rookie cynic's picture

Calculating inflation is simple: food, fuel, and health care costs. CPI is an excuse to save the Treasury money on SS payments and provide cover for the inflationistas (Greenspan, Bernanke, once nearly dead TBTFs global banking cartel).

Tue, 03/01/2011 - 14:27 | 1007916 knukles
knukles's picture

Would somebody please tell that asshole Steve Liesman about this truth? 
My home is fucking underwater, I'm not buying a new car, furniture, clothing, jewelery, wife and I gave each other no presents for Christmas, no addition to the house, no casual shopping.
Steve, buddy, for the majority of the real American workers (if there are any left) the only expenditures are food, fuel and healthcare.  And education if you gots some grown rug rats in college and maybe even have one or two at home who can't even get jobs.

Jesus H. Fucking Christ on a Crutch. 

Tue, 03/01/2011 - 14:19 | 1007875 centerline
centerline's picture

(removed - post landed in wrong spot... damn)

Tue, 03/01/2011 - 14:19 | 1007879 km4
km4's picture

And the world is flat 

Tue, 03/01/2011 - 14:28 | 1007921 knukles
knukles's picture

Don't know about Steve Liesman, but that other asshole Tom Freidman believes it.

Tue, 03/01/2011 - 14:28 | 1007918 Hedgetard55
Hedgetard55's picture

I levelled the MAC 10 at his head and said "Don't move, Professor". The filth encrusted man in front of me looked up for a second from his meal of boiled rat and then back down. I was glad to be wearing the Level 2 bio/chem warfare suit in this environment.


"You know me?" he said.


"I know you, Professor, despite the fact that you have spent the last year here in the sewer system of New York, on the lam, and are barely recognizable. Professor Benjamin Shalom Bernanke, former Chairman of the Federal Reserve System. Missing since 2012, tried in absentia and sentenced to death for crimes against humanity, 2013, architect of the greatest boom and bust cycle in market history, the "Bernanke Crash" of 2012."


"Are you going to kill me"?


"Far from it Professor. I am here to rescue you. Our new government has need of your talents".


"New government?" He looked surprised.


"Yes. All of the states from New York north to New England have been handed over to the Chinese in lieu of Treasury payments. I suppose you don't get much news down here. Your sentence has been commuted, and President Madoff is looking to hire you to run the new colony's financial system".

Tue, 03/01/2011 - 14:51 | 1008047 knukles
knukles's picture

Oh no, Benji, we're not gonna deep six you, you're going to be Steve Liesman's new partner for eternity.


And PthefuckS....
Just got my healthcare renewal.  37% premium increase.  
Yes, 30 fucking 7 % increase in my monthly premiums and know what the provider says?  Says it's all due to Obamacare. 
In writing. 
No Fucking Inflation, My Ass!

Tue, 03/01/2011 - 14:36 | 1007975 pitz
pitz's picture

If AAA is like mortgages, then the numbers/ratings aren't to be believed. 

Tue, 03/01/2011 - 17:41 | 1008061 JR
JR's picture

No inflation?  As that honored wordsmith Bill (it-depends-on-what-your-definition-of-is-is ) Clinton would say, it depends on what your definition of inflation is.

Fortunately, we have a multitude of inflation definitions – all from one man.  As Bill Dudley, head of the NY Federal Reserve, outlined in his NYU Stern School of Biz speech there’s…just plain ol’ inflation; medium-term inflation, long-term inflation, long-term inflation expectations, headline inflation, core inflation, disinflation, future headline inflation, the non-accelerating inflation rate of unemployment (NAIRU), long-run NAIRU, inflation expectations, well-anchored inflation, inflation pass-through, rising inflation, push-up inflation, unanchored inflation, breakeven inflation,  five-year inflation expectations, and the inflationary spiral,

All of this to say of course that there is no inflation, not to worry, that the magic nocturnal on-the-job-while-you-sleep watchdog – the Fed --  has your back.

Oh, Dudley!

What I’m interested in, Dudley, is clandestine inflation, shadow inflation, sneaky inflation.  You know, Dud, that inflation that you don't recognize, that began with the inception of the Fed that started the dollar on its downward spiral until by 2006 (using your government’s own figures! Dud), it took $2,038.38 to buy what $100 bought in 1913.

Bet you didn’t know that, Dud.

Tue, 03/01/2011 - 15:02 | 1008101 AlaricBalth
AlaricBalth's picture

Has anyone seen the swill being disseminated by AP today.

According to the AP Newswire today:

“Nearly everything is going according to the plan Federal Reserve Chairman Ben Bernanke hatched six months ago,” the AP begins the article. “Since then stocks have soared, the unemployment rate has dropped and Americans have started to spend more.”

I guess the 44 million people on food stamps, the 17 million people under/unemployed and the 1.2 million people who will lose their homes this year can sleep easily (in a box) knowing that Bernanke's plan worked so well for them.


Tue, 03/01/2011 - 15:37 | 1008239 JR
JR's picture

The AP Newswire report parallels the NY Fed/Goldman Sachs report delivered by Fed/Sachs frontman Bill Dudley to the NYU Stern Business School.

It’s the Soviet Russia Stalin Five-Year Plan report. Medals for the heroes of the Workers Paradise—Bernanke, Obama, Dimon, Daley, Dudley, Geithner, Summers, Rubin, Rockefeller, Romer, Emanuel, Thain, Greenberg…

This is Pravda.  Eventually we’ll be calling Bernanke “Dear Leader.”

They tell us continuous lies regarding policies that benefit only themselves and their agenda, policies that make them obscenely rich.  They’ve got one thing going, the stock market. All the basics of the economy – employment, housing, construction, energy, food, inflation, debt, savings and wages, welfare – are worsening.

These are the marks of a dictatorship, where the people in power are abusing the people and telling them, instead, how good life is in the United States.

Dudley’s and the AP’s boasts remind me of the Kremlin’s boasts, reminiscent of the slogan which Stalin used to usher in the notorious ear of purge and terror in the mid-1930s: “Life is better, comrades, life is gayer.”

Or, when Lenin ordered the peasants to deliver all surplus food they produced to requisitioning gangs from the cities, and to accept almost worthless money in payment.

Tue, 03/01/2011 - 15:22 | 1008176 Nostradamus
Nostradamus's picture

Pretty sure spot gold just hit an all time high today.

Tue, 03/01/2011 - 15:29 | 1008201 william the bastard
william the bastard's picture

This is only the beginning mate. You'll need to add more.

Tue, 03/01/2011 - 15:46 | 1008282 Nostradamus
Nostradamus's picture

Oh yeah I'm loving it mate.  I don't have much gold, but I've got a little and some shares in Yamana.  I'm hoping for 10,000 dollars an ounce minimum.

Tue, 03/01/2011 - 15:38 | 1008238 reescher
reescher's picture

These aren't the inflations you're looking for.

We can go about our business.

Tue, 03/01/2011 - 16:02 | 1008370 akak
akak's picture

Hee hee!  Nice.

Tue, 03/01/2011 - 15:38 | 1008248 whatz that smell
whatz that smell's picture

i really miss the robotTrader and his amazing charts... come back lil robo!

Tue, 03/01/2011 - 16:07 | 1008399 akak
akak's picture

Honestly?  I say good riddance to that laughable clown!

Tue, 03/01/2011 - 15:41 | 1008257 Cortez
Cortez's picture

I agree that food inflation is self correcting.  After all, if you starve to death today there will be less food demand tomorrow.

Tue, 03/01/2011 - 16:38 | 1008614 Oh regional Indian
Oh regional Indian's picture

Reversion to mean! Can be quite a mean ride I hear.

Tue, 03/01/2011 - 17:47 | 1008782 sbenard
sbenard's picture

Every day, I click the heels of my ruby slippers together and say three times, "There IS no inflation. There IS no inflation. There IS no inflation!", just as Good Witch Bernanke told me, but there IS no transportation to the magical land of no inflation. The grocery store and the gas station remind me of the UNreality of that fantasy every day!

Impeach Bernanke NOW!

Tue, 03/01/2011 - 23:49 | 1010153 BenLightYear
BenLightYear's picture

Should read the original...her shoes are made of silver not ruby...knowing that changes the story from a book for kids to a book with a purpose

Tue, 03/01/2011 - 18:36 | 1009093 10kby2k
10kby2k's picture

Walmart price:

   Ground beef 93/7       $4.28 yesterday from 3.88 previously and 3.78 one month ago   (they do not discount this  item and is a direct coorelation to underlying commodity)---i buy this product every week

Sherwin-william mesa+ scrubble flat--extra white:

                      $30.48 yesterday   28.22 2 weeks ago  26.88 last month

Tue, 03/01/2011 - 19:13 | 1009314 Stranded Observer
Stranded Observer's picture

Grub, guns, gold and Sherwin-william mesa+ scrubble flat--extra white!

Tue, 03/01/2011 - 20:28 | 1009549 ziggy59
ziggy59's picture

the Yogi Berra Economy...There is no inflation, just everything costs more.

Wed, 03/02/2011 - 01:00 | 1010304 Common_Cents22
Common_Cents22's picture

prices aren't going up, the dollar is just going down.

Wed, 03/02/2011 - 03:14 | 1010443 e_goldstein
e_goldstein's picture

or spoon, or food for the spoon.

too bad you can't eat ipads, either.

Wed, 03/02/2011 - 08:20 | 1010630 Youri Carma
Youri Carma's picture

Besides, higher oil leads to higher food prices :/ So, rubbish!

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