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The Truth About Inflation That No One Wants to Admit
The mainstream financial media continues to maintain the false delusion that inflation is a possibility that
might happen.
A few headlines from the last few days:
Traders eye data this week for whiffs of inflation
Rising food prices boost wholesale inflation
Producer price gain offers cautionary note on US inflation
Futures Hold Losses as Inflation Heats Up
… and of course, the obligatory delusional Fed claim…
Low inflation an 'ongoing concern': Fed's Lockhart
All of the above headlines miss the mark by a mile. Inflation erupted in the US years ago. The signs were present to anyone who actually engaged with reality.
What is inflation? The simplest answer is higher prices.
So… if you pay the same price for a smaller amount of a good by A) shrinking the package it’s presented in or B) not filling the package to the brim… that’s inflation.
If a company charges you the same price for a lower quality good (raising the price on a good of equal value)…. that’s inflation.
Corporations have been doing all of the above for years. Kellogg’s, Snickers, Tropicana, Bounty, Heinz, Frito-Lay, Reese’s, Pantene, Oscar Meyer, Tide, and others have all been shrinking the size of their goods packaging (selling less for the same price) or changing ingredients to use lower quality goods.
Heck, even toilet paper has been shrinking. The average toilet paper panel used to be 4.5 inches by 4.5 inches. Recently. Wal-Mart and other companies began selling rolls that were 3.9 inches by 4.0 inches.
This sounds like a negligible difference, but as The Consumerist notes, this adds up to over 30 fewer square feet per package of 18 rolls. In pricing terms, this is the equivalent to a 7.5% price hike.
Again… inflation.
The big problem with this is that NONE of these facts are well publicized. The Federal Reserve certainly isn’t going to be pointing this out. And corporations won’t do it either because it is effectively the admission of PRICE HIKES… something NO consumer wants.
So… don’t look for the truth about inflation to come from the financial powers that be nor from the financial media. We’re on our own on this one.
To pick up a FREE Special Investment Report outlining how best to prepare your portfolio from inflation, swing by www.gainspainscapital.com.
Best Regards
Phoenix Capital Research
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Aside from enrgy costs, and in the case of food, weather water situations. Basic commodities should not inflate as much in price as they have. There are some geo political reasons, that were not required. I feel a large reason for inflation is ego inflation. Accomplishments with wealth are difficult. There was a time when it was accomplishments with your wealth were what caused adimiration. From your peers and the people in general. But that requires work, risk and intelligence. Unfortunately, from top to bottom in many societies, it is not accomplishments of wealth due to putting it to work, but the mere trappings of wealth that inspire admiration. The size of the pile of money ( real or accounted ) and the flashing of it, the toys. Luxury items have always had a much larger profit margin than the basic needs. Unfortunately, as the competition to flash your wad becomes more difficult, even those items suffer a supply and demand effect. Often the supply is made more precious by simply increasing the price. It is more important than ever that people know how much it cost. Not how much it is worth. To pay ever more ridiculous prices for items to advertise your wealth, you need to extract higher prices from what ever makes your wages. The inflation trickles down to those who cannot arbitrarily extract more for their wages.
If the current crop of wealthy were to measure each other in meaningful actions of applying, risking, their wealth, all would benefit greatly. They would also earn much respect.
I think if I had vast wealth. Instead of buying a multi thousand dollar fountain pen, or millions of dollars of other things I really did not need. I would find huge satisfaction in raising wages for all who worked in the company. I would never run out of imaging how many things it did for everyone. It would feel good. And I would still be pretty rich. Maybe richer. Not paying for a bunch of useless things. Fewer bills. More feeling good.
Maybe I can't understand why that isn't the case for so many extremely wealthy people, is that I am not a sociopath.
After much thought I have come to the conclusion that while inflation appears tame and is not showing up in a big way the seeds have been planted, and the number of them is somewhat shocking. Inflation lurks beneath the surface and is hidden away in the dark corners of our future. Want to know where the real cost of things is going, just look at the replacement cost from recent storms and natural disasters. The article below delves deeper into some of the ways inflation hides away.
http://brucewilds.blogspot.com/2013/06/inflation-lurks-beneath-and-hidde...
"The Truth About Inflation That No One Wants to Admit"
Inflation is theft!
I recently noticed POWDERED CELLULOSE in some cheese I bought. That's powdered wood fibers. Fucking wood in our cheese. Can you believe they can get away with this?
...at some point in time we'll be boiling bankers and siphoning off the fat to burn in the reading lamps....
Bankster, the other white meat.
Anyone up for a 'leg of man" in some Bearnaise sauce?
That would be called shitten bricks.
Try to find a half-gallon of ice cream, or a lb of coffee.
Don't forget the equity market. Inflation.
Inflation once grew the universe from the size of an atom to a billion light years across in zero seconds, and it can do it again.
As long as you believe it, it has to be true.
Inflation is rising prices...for labor. That's why TPTB can claim there is no inflation with a straight face.
Regarding the shrinking toilet paper.
Just scoop the shit out by hand, dip in the flush water and then wipe your hands on your pants. You can use the tiny toilet paper to open the bathroom door because those are known to have dirty stuff on them.
The majority of the world uses their fingers,leaves etc.
Some are lucky enough to have water to clean them after.
Alternatively if you take most of the sugar out of your diet you will soon poop turds as hard as rocks with little or no klingons left to be wiped away.
A one square affair.
Thats true, so true.
Thats the funniest sh_t I've heard all day.