Can't Find Any Inflation? Here's A Place To Start

Tyler Durden's picture

Lately, there has been much anguished consternation, especially among the tenured US economics professors (primarily those who make 6-digits or more per year) and of course, the Federal Reserve where as we revealed last week, at least 113 government workers make $250,000 (excluding bonuses) and thus all are confined within the cozy cocoon of America's "1%ers", about the so-called complete disappearance and collapse in inflation. So to help these ivory tower-confined individuals in their holy grail to rediscover the inflation that is more than felt by the rest of America, here are two simple charts.

And some observations of how this "non-existant" inflation is impacting the lives of ordinary people, those whose net worth does not rise by the same percentage as the Fed's balance sheet, and thus the S&P500, and are crushed by the inequality with the Fed's Chairmanwoman is so vocally concerned about.

Our paychecks stay the same, but the food prices keep going up,” fumed Jody O’Toole as she shopped at the Associated Supermarket at Eighth Avenue and 14th Street. “You still gotta feed your family, but meat and milk are too much.”


Colleen Vincent, who lives with her mother in Brooklyn, said she’s avoiding meat and sticking to canned goods and cabbage, which she turned into three meals last week.


“I don’t do big grocery shopping trips anymore,” said Vincent, 37. “I have to buy something that gives me more bang for my buck.


We used to buy beef — now it’s a special treat,” she added. “There are other things I want out of life. I don’t want to spend everything on food.”


Steve Gould, 68, was picking up seltzer water, bananas and yogurt and said he refuses to buy anything unless it’s on sale.


“I want people to stick their heads out the windows like they did in the movie ‘Network,’ and say, ‘I’m mad as hell and not going it take it anymore,’ ” Gould said.

But how is it that food inflation of over 20% in some cases is so crushing to ordinary Americans and yet the people who are tasked to isolate and remedy precisely such problems are completely oblivious to its impact?

The answer is simple: "Janet Yellen, the No. 2 at the Fed's Board of Governors, and her husband—Nobel Prize-winning economist George Akerlof —had assets such as stocks, bond-fund shares and bank accounts valued at roughly $4.8 million to $13.2 million in 2012, according to financial disclosures released by the Fed on Tuesday."

QE4, er D

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
LawsofPhysics's picture

According to the Federal Reserve, wages don't matter.

   "The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." — Rothschild Brothers of London, 1863

  "Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

i_call_you_my_base's picture

Only problem is that for a lot of folks it makes up more than 15% of their income.

Rememberweimar's picture

Remember the Weimar Republic (Socialism for the rich) it's all fun and games until New York and Silicone Valley get a Nuclear Bomb in the eye...

hedgeless_horseman's picture



We make our own butter using cream from our family cow.  It's better and essentially free.

Man cannot live on bread alone...

However, having a Country Living grain mill and several buckets of hard red winter wheat is a good start, if things get a little unreliable.

RaceToTheBottom's picture

The Law of the Jungle is the only Law the Feral Reserve understands.


nope-1004's picture

The FED lies about "no inflation" are 100% horse shit.  We have massive inflation today.  ZIRP and the destruction of capital through printing and bailouts ensures massive inflation.  But the system is centrally managed and manipulated, so the true barometer of inflation (gold) must be kept in check through paper shenanigans.  The UST is also a hoax, totally massaged and managed by TBTF banks playing in the TNX.

The system is horribly controlled.  Yet practical, real life shopping speaks otherwise.

The FED lies so bad yet people continue to believe them.  Hoping one day that changes.


Save_America1st's picture

it's this damn insane bacon inflation that's really pissing me off.  I can go without beef and even chicken.  But good bacon is about 50% more expensive this year over last year.

Mother fuckers must pay for this outrageous treason!


I like bacon a lot...

gold-is-not-dead's picture

The culmination of the food prices will be when you can't buy bread for dollars, only for government certificates which allow you to purchase two loafs per day. It happened twenty years ago in Yugoslavia.

Whalley World's picture

The way to get value from your bacon is to keep the grease, i use it to cook everything.  Steaks cooked in bacon fat delicious

wildbad's picture

....can you barter it for heart stints?

hedgeless_horseman's picture



Heart stents?

It isn't so much eating fat that causes heart disease, as it is a sedentary lifestyle and smoking.

James_Cole's picture

O gawd don't get zh'ers started up on the epic salt & butter conspiracies again.......

Steaming_Wookie_Doo's picture

@hedgeless, I love me some good bacon too. I go to a large smokehouse nearby and pick up a box (15 lbs) of bacon ends. Only 99 cents/lb. I'm not fussy about it looking all purty. Never buy that stuff at the store, a complete ripoff.

As for the health issues, there is significant evidence that cholesterol deposits in blood vessels are a function of the body trying to apply "fix-all" to the inflexible or cracking arteries. This can come about from excessive chlorine in your water, lack of vitamin C, high blood pressure, etc. Of course smoking cigarettes will totally deplete your vits, so that does play a part. High blood pressure can be a big sign of continuous inflamation in the body. Something is wrong, so sitting there taking pills won't fix it. Exercise is the best "pill" you should be taking! Fine, watch TV or comment on ZH if you must, but do sets of situps and pushups. You can get thru your show and be up 100 reps



They are heart stents, you uneducated diaper wearing fake transcendent yogi bear dipshit Klingon from Uranus. 

Get off your dead ass, and on to your dying feet every now and then - like, every motherfucking day.

And do some fucking cardio, before your whole circulatory system clogs up like Obama's ass from all the fudge packing he gets compliments of his boy Reggie.  

Dinero D. Profit's picture

Remember bacon bits.


You bake some sweet potatoes, mash and butten them.  Sprinkle on some bacon bits.  Then add a meaningful amount of grilled grouper.  Put some boiled kale on the side.  You need a Wa;dorf salad.


Here's my point.


It's bacon bits that add a nuance of decadence to an outherwise healthy meal.

squid427's picture

Just cooked a steak in bacon grease for the first time last week. It was the best steak I've ever eaten. I got steak defrosted for tonight going to be cooked the same way. 

Pie rre's picture

I used to  be able to find an affordable ham but I suspect they are all being sent to China.

daveO's picture

Homeowner's insurance premiums are going thru the roof, so to speak. Mine doubled in 2 years w/o a claim since the 80's. That's after staying flat for over 10 years. Other companies don't even want to talk. A relative, whose house is 40+yrs old too, has had the same problem. They just learned theirs will go up another 25-30% next year. I'm starting to get the notion they are intentionally dropping older houses to help move all the foreclosures. I even asked one agent if that was a possibility. She said she hadn't thought of that. She wouldn't tell me the real reason, either. 

just-my-opinion's picture

I payed for my house 15 years ago....I didn't know the Gov./...local and federal were going to go NUTTS

You don't pay local taxes they take your house....but how do I also pay for the increase in 1) Health Ins. 2) Home Owners Ins. 3) Food...I paid 1.99lb for hamburger 1/ it is 4.70lb 4)Utilities are....well don't get me started 5)Anything that is related to fun....dinner out or a movie....Break out the Vasoline


As Of late...Just get ready to get Screwed


PS....The Fall of the dollar.....Rant over

bbq on whitehouse lawn's picture

If you want to price a market, first break it. House prices need to collapse, but that would hurt banks. So an alternitive is to milk existing homeowners untill they lose their house (having its loans repriced) or just useing that income to patch holes in your balance sheet elsewhere.

centerline's picture

Anything that is connected to the system is how they are going to tax the shit out of us.  In ancient Rome, people just walked away from thier property.  Have a feeling we are in for a similar journey. 


I_Am_'s picture

Yumm..... bet the chairmanwoman doesn't know the taste of fresh home grown stuff, busy gathering / doling millions.....

Hippocratic Oaf's picture

Buy on-sale and stock up when it does.

Even in NJ, where I live, skinned-boneless chicken breast $1.99lb.

Beef is on sale at times. Don't pay $5lb for ground beef. Buy a lean chuck roast, less than half the price and have them make it into burger.

Look for mark-downs, a freckled banana won't kill you.

For those of us without cows, $6 for a block of butter is insanity!

Shop smart and you'll be ok.

I feel for any neighborhood in NYC that has no options that can't get out of city and find deals.

KnuckleDragger-X's picture

if you can't do it yourself find a friend in the country to help.....

tmosley's picture

Why would anyone downvote this?

hedgeless_horseman's picture



Maybe they prefer peanut butter and jealousy?

Peanut Butter Engineer's picture

Maybe it's because the buttons are too small and too close on phone browser!

KnuckleDragger-X's picture

yeah HH, old school is the way to fly if you can do it. I've got 3 steers out back grazing and one of them is heading for his last round up in a couple of weeks with the other two slated for next spring plus the garden went well.

Pooper Popper's picture

Hedgeless Horseman.

Fucking Awesome!

BUUUUTTTTEER looks so good!

Two things     1. Hard white wheat is really good too

2  " if things get a little unreliable." ..should be "WHEN things get completely Fucked up"-fixed it for you.

Did you make that bread???  WOW!


hedgeless_horseman's picture



Did you make that bread???

mrs_horseman is the bread maker.  Wow indeed.

Pooper Popper's picture

Mr Horsemen,or is it


Mr hedgeless

Does she have a sister?


Tell her mom and dad they did a great job!

Hulk's picture

Just  ground up some hard red winter wheat yesterday and made bread. Dipped in Olive Oil,it was delicious. Bread made from ground whole wheat

is high in fiber and minerals and bears no resemblance to the store bought stuff. No wonder many people are so unhealthy, eating the store bought bread...

hedgeless_horseman's picture



Bread made from ground whole wheat
is high in fiber and minerals and bears no resemblance to the store bought stuff.

So true. 

Thank the Giant Squid commodity traders that made a metric buttload of money on their gluten-junk-science, short wheat, long corn, investment play for keeping wheat prices down.

Exponere Mendaces's picture

Can always count on mr-prepper-instagram when things get rough. Won't be so nice when your fences get stormed, and you run out of ammo to protect your hoard, will it?

lincolnsteffens's picture

Wow! where can I get me one of them free cows, feed, land to roam and shelter?



hot sauce technician's picture

You'd really love for that to happen. Right fuckface? 

JRobby's picture

As real income continues to fall vs overall price increases, the amount of CPI spent on food increases.

JTinHB's picture

"food accounts for <15% of CPI" 

That is one of the flaws of the CPI.

Shizzmoney's picture


"food accounts for <15% of CPI" 

That is one of the flaws of the CPI.

What's messed up is that once we get to 30-40%, that's when revolutions happen.

The fake CPI even reflects how close we are, nevermind the actual numbers.

neidermeyer's picture

That 15% of CPI doesn't take into account that we have a huge disparity in incomes ,, the middle class is being absolutely killed with food and energy costs while the takers grumble as we pay their bills with subsidies and EBT transfers food/cash.. To the 1%ers the increase in food prices means little.

X.inf.capt's picture

BIS end game...

one world currency!


lasvegaspersona's picture


I read the BIS differently...'Currency is only a medium of exchange."

The problems arise when currency (and currency derivatives) are used as stores of value. This allow paper to hold way more wealth than exists. The printer profits but eventually the debt kills the system. If currency were not hoarded (and say gold was) then the currency would circulated and commerce could continue while savers were secure with the alternate SOV.

css1971's picture

Have you been reading Silvio Gesell?

daveO's picture

See Mexico, in the 80's and 90's, for what happens to those stores of value.

luckylongshot's picture

Wages dont matter to the Rothschilds, who have looted the public wealth of the western world by up to $600 Trillion!,,,,or around $1 million per employed person in the US and Europe.

Bloppy's picture

Power bills in New England will be rising 33% this winter, that's already a done deal. Groceries have become ridiculously expensive this year in particular.


Elsewhere- SA paper blames American "rednecks" for Ebola response: