US Inflation On Track To Hit 8.3% In 2011

Tyler Durden's picture

Chasing all the fluttering glow in the dark swans over the past month has put some of the key issues facing the US economy on the backburner. But just like today's surging inflation update in the UK confirmed, there is only so long that any given crisis can be used a distraction from the real problems at hand. And here is where we stand: per a quick check with the recently released and constantly updated MIT billion price project, which just happens to correlate 93% with the CPI, 2011 inflation in the US is trending at an 8.3% annual rate of increase. This is only comparable to China, which just happens to have a growth rate (presumably that is double that of the US), and is almost three times higher than the latest inflation data released by... Zimbabwe. Below is the most recent inverse disinflationary data confirmation from MIT (and plotted by John Lohman). By now we hope readers are honing their iPad eating skills.

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TWORIVER's picture

Can't they just print more money? sarc/off

DoChenRollingBearing's picture

Two ways to defend against inflation:

-- gold and other PMs

-- ¨paper food¨ ETFs like DBA and JJG

JuicyTheAnimal's picture

I was pondering some call options on CF for maybe Aug strike.  Is there any reason that would not be a good inflation bet? 

I think I need to buy a gun's picture

well in the world of real food its up again this week........all those extra dollars need to start going into gold but when?

yabyum's picture

Do you think I will see 8.3% on my US inflation Bonds? I  didn't think so either!

camaro68ss's picture

YEAH the Obama, YEAH the bernake, Hope and Change for all, in Debt we trust

oh_bama's picture






Sabibaby's picture

Rent hasn't dropped in the Denver area, it's going up. So is gas and food. I need food and energy, so those are the prices that matter to me.

Misean's picture

OOOOO...It's so 70's kitch!

Too bad wages and fixed income payments aren't tied to it, though.

Bay of Pigs's picture

But Mish says this isn't so. There is no inflation. He threatens to ban people who question his theory on deflation.

TruthInSunshine's picture

I trust Ben S. Bernanke, the finest economist and Federal Reserve ChairCreature of all time!

How dare you impugn Dr. Bernankincide's credibility, you bastard, John Lohman!

Cash_is_Trash's picture

Agreed! How dare they contradict the Department of Truthiness?


emsolý's picture

it's a direct attack by the MIT economists on the sound economics of Princeton economists like the Bernank, the Paul everywhere like such as

btw, i personally belieeeve that the Bernank and the Obama need to be viewed in the same context as the Miss Teen South Carolina 2007 ( from now on.


jkruffin's picture

Here comes the scam push again..they want everyone to use the plastic again at will..

The Dangers of Avoiding Credit by Kimberly Palmer
Monday, March 21, 2011

provided by

My 25-year-old coworker thought she had done everything right when it came to protecting her credit. She paid off her student loans early. When she does use a credit card, she pays it off in full each month. And she's never been late on a monthly bill. Her credit score was over 750, which is considered excellent.


Despite that stellar record, multiple lenders turned her down for a mortgage earlier this year. The reason, they told her, was that her credit record was simply too light. Since she had paid off her student loans and didn't use much credit elsewhere, they had no way of knowing whether or not she would be responsible with a mortgage. In other words, she was being penalized for living a relatively debt-free life. To make matters worse, one of the lenders told her that because she was shopping around so much for a loan, the multiple inquires into her credit report were starting to negatively impact her score.

Her experience gets at one of the great weaknesses of our credit reporting system: In order to borrow money, you have to have already borrowed money. That's the only way you can demonstrate that you are "credit-worthy," as the credit reporting bureaus put it. To get to the bottom of this conundrum, I spoke with Rod Griffin, public education director for Experian, one of the big credit reporting bureaus. Here are two truths and four myths about credit reports:

Sophist Economicus's picture

Does Woody Allen's line of "I don't want to be part of any club that would have me as a member" apply here?

brunoaa's picture

not woody allen, groucho marx

long juan silver's picture
  Now there sits a man with an open mind. You can feel the draft from here.
Misean's picture

Weakness?!?! The credit system is the modern equivalent of the company store! It's brilliant! Well, for our credit masters, anyway.

101 years and counting's picture

or, banks just arent making loans and they will use whatever excuse they want.  if she applied in 2004-2008, she would have been approved for a 350K loan.



SteveNYC's picture

Bahahaha!! Brilliant find.

"Uuuuhhhh, Mr. Bank, you can stick your credit up your ass. Don't want any, don't need any, I'll pay cash, thank you!"

Pants McPants's picture

What a silly - but perfect - anecdote to describe the US financial system as a whole.  Debt prison for all!

On a serious note, I suspect those requirements will change in the coming years.  Those who have saved and maintained the purchasing power of his or her money will have decent access to assets that heretofore were considered unattainable.

internethobo's picture

Yup this is true.  I realized this years ago and to beat this system I did the following:

-I applied for and receive 16 credit cards
-After a few months I called each card to increase the credit limit to the highest they would go without running my credit again

-I use two cards a month and cycle through them in order.  This prevents the credit card companies from closing the accounts for inactivity.

-I pay off the cards that were used every month


This process not only boosts your credit score, but increases your debt to credit ratio.  Of course you need to be responsible on using your credit!  Ever since I did this, I have never been denied a mortgage, personal, or business loan or line of credit.

The Alarmist's picture

OMG, a slave who willingly slaps on the chains.

H. Perowne's picture

Deus impedito esuritori nullus

Cash_is_Trash's picture

No God Can Stop a Hungry Man.

How about a King? Burger King.

AlaricBalth's picture

Gubernatio autem potest...

docj's picture

Illegitimus non carborundum est

AN0NYM0US's picture


They have time, resources and the will to send the Goldman Sachs algo thief up the river for 6 or 7 years, to convict some small time exec  at Apple for money laundering  but for some reason just can't cobble together sufficient evidence to charge even a single  bankster for money laundering.

Prosecutors say bank executives not easy to charge in criminal money laundering cases

Major banks investigated for doing business with countries facing U.S. economic sanctions have reached agreements four times since January 2009. In those settlements, the institutions pay large fines and agree to meet certain requirements, but no executives face jail time. Last year, U.S. District Judge Emmett Sullivan of Washington labeled one such settlement a “sweetheart deal.” In that settlement, Barclays Bank paid $298 million in penalties but faced no charges.


“Why isn’t the government getting rough with these banks?” Sullivan said at an August 2010 hearing.


In such cases, Kaufmann said, prosecutors could have indicted lower-level employees who are actually handling the illegal transactions on a day-to-day basis. But that wouldn’t get at the executives who made the decisions — and figuring out exactly who that is can be daunting.

pitz's picture

Time to hit 'em all with RICO indictments.

Henry Chinaski's picture

Double digit inflation coupled with double digit unemployment will crush the middle class.

plocequ1's picture

Gee, Who is going to pay off this debt? If the middle class is crushed, Who does that leave?

bingaling's picture

anybody making less than 5 million a year is your answer -oh and of course small businesses if there any left .

H. Perowne's picture

We still have a middle class?

Village Idiot's picture

"We still have a middle class?"

rhetorical, of course.

Buckaroo Banzai's picture

That's the plan. One World Government cannot be instituted while the US still exists as we know it. And the US cannot be brought to heel until the US middle class is crushed. The Hidden Elite are emplying an aresenal of weapons, namely unemployment, inflation, socialism, atheism, moral relativism, single-parent families, divorce, drugs, booze, and promiscuity-- the middle class doesn't stand a chance... unless they wake up Real Soon Now.

Calmyourself's picture

You junking fools, for most intents and purposes he is right.  The middle class in this country has been weakened with a multiprong attack. Set up for the asset stripping in progress and the vicious bout coming later this year.  You were convinced of your moral weakness and preyed upon by the media, Government and corrupt institutions.  Your relativistic views have made you easy prey by and large. Listen to any liberal, the world is gray, unfortunately yours is about to get red.

Rodent Freikorps's picture

He's not just right, he's mother fucking right.

It is also past the point of stopping. Move south and take your gold and weapons. Maybe something can be salvaged.

Calmyourself's picture

South where?  South America (Chile) or southern U.S.?  Particular state likely to fare better than others, cuz SHTF and Texas is toast friend, 80 million Azlatans coming across that border..

Broomer's picture

Is there still a middle class to be crushed?

DoChenRollingBearing's picture

+ 1

Too damn bad if it conflicts with Federal laws.

10th Amendmend Bitchez!

Fed delenda est.

Buckaroo Banzai's picture

The Constitution does not allow States to coin money, but it does say that States may not "make any Thing but gold and silver Coin a Tender in Payment of Debts"... which implies that if a private entitity (or foreign entity) coined bullion, a State could affirmatively recognize it as legal tender.

There is nothing in the Constitution that declares that the Federal Gov't has a monopoly on coining gold and silver-- if it did, then why would the Constitution specifically state that the Federal gov't could not just coin money but also regulate the value of foreign coin? It is clear from the text that coins from any source are allowed to circulate freely. The Constitution allows the Federal Gov't the power to punish those who counterfeit "the current coin", i.e., make facscimiles of Federal or other coin in current circulation; but there is nothing that says that ONLY the Federal Gov't is allowed a monopoly on the circulating coin.

That Peak Oil Guy's picture

You may be right (Constitutionally speaking), but this news story shows that TPTB may have other ideas.,0,19...


TruthInSunshine's picture

Supremacy clause under Article VI says 'no,' me thinks.

Since the coinage of money is exclusively a function of Congress under the enumerated powers (even though Congress has delegated that function to our very much beloved Federal Reserve), there is no 'slot' or 'vacuum' that has been reserved for the states in this arena.

I'd love to hear contrasting views, though.


Marbury v. Madison (1803)


McCulloch v. Maryland (1819)

The Alarmist's picture

You are confusing the power to coin money with the power to have a monopoly to coin and regulate money ... if you re-read Art. 1 § 8, the powers are to coin money and regulate the value thereof, and to make laws dealing with the counterfeiting of US money.  I suppose you could stretch the "necessary & proper" clause to allow for the crushing of competing forms of money. I think they only got the guy with his silver dollars because they were similar enough in design to be credibly designated a counterfeit. Doom on him.