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Can't Find Any Inflation? Here's A Place To Start
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
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"Qu'ils mangent de la brioche."
Price inflation is nothing more than revealing evidence of the banksters' prior thefts.
An American, not US subject.
"Guillotine the Fed!"
Sacks of shit thrown hourly onto an ever growing compost heap. Now plant yer bulbs. . . .
The Fed says food prices are up only 13% in the last 5 years.
http://research.stlouisfed.org/fred2/graph/?g=8l2
Somebody is lying because my grocery bill is up a helluva lot more than that. Hamburger is $5/lb, for one thing, and you can forget about steak. They only sell ribeyes anymore. What happens to the rest of the cow is a mystery.
My bad. It's only protein prices that are up 20% in the last 12 months.
http://www.bls.gov/ro3/apmw.htm
Shoe leather is probably still affordable.
It becomes that $5.00 a pound hamburger.
Gee, I wish I made over $250,000/year. But I guess I'm only a hard-working, private sector, Middle Class Patsy.
Oh, yes, and then there's things like the "no inflation bagels" that now cost $3.99 for six [used to be 90 cents for six big ones].
Same for dark chocolate, apples, etc which have all soared thru the roof.
FEDERAL RESERVE EMPLOYEES ARE NOT GOVERNMENT WORKERS,
contrary to what the article mistakenly claims:
"at least 113 government workers make $250,000 (excluding bonuses)"
(apparently, judging by the down votes,
even at ZH, some are deceived by the name
into believing that the
Federal Reserve is a government instead of a private business organization.)
Become a vegetarian, a lot cheaper and healthier!
Riiiiight, how about presenting some facts now?
http://atlanta.cbslocal.com/2014/04/01/study-vegetarians-less-healthy-lo...
Soy for the masses. Meat for the elites.
soylent green, fixed it
What they really want is chemicals for the masses and natural food for the elites. Something like what PKD imagined in "Do Androids Dream of Electric Sheep?"
it should be obvious now that the attempt to create inflation using monetary policy settings, results in the most inflation in monetary assets like share and bond prices.
the inflation in these monetary assets is the only answer you can get, since inflation is a "natural" phenomenon not an artificial one.
the prices of the goods shown here is "real" and not a monetary asset.
Russian annual inflation has hit 8.3%
http://www.nasdaq.com/article/russian-central-bank-says-annual-inflation...
We would probably be at the same level if we calculated it as they do.
You should be happy about that given the fallacious sanctions being imposed on Russia which has pushed up the prices of stuff.
the Krugmanerites are so lost in their own world, they think screaming no inflation means success, when in fact it is the most damning proof for the abject failure of their perpetual motion theory.
Consider, those morons are doing their best to create inflation to deal with the National Debt, and when they fail, the spin is that is success! Look, we tried to create inflation and couldn't.
Problem of course is that the inflation is delayed for a bit; it is hardwired in to happen, though, unless there is one Hell of a financial uinwind!
Craig
The FED is not a government entity. It is private.
Correct Easwood. And, it is 100% owned by the Banksters.
Craig
Kill the moneychangers!
Only time Jesus was angry in the NT he kicked the damned bankers out of the temple!
Craig
Janet Yellen has a husband?
Still $5 for a cooked costco chicken, buy several and toss em in the freezer. Where I live Kale grows like a weed, it actually has some protein in it as well. A bag of organic potatoes goes a long ways and cut the old ones up and bury them in the garden, can hardly get rid of em. I live near the ocean and have been stocking up on fishing supplies. There are ways to get around food inflation if you have time and space to do it.
http://www.acting-man.com/?p=33669#more-33669
Can we please stop calling people that work at the FED Government employees. Its is bullshit!!!! They work for a private enterprise. Say it with me, the "FED" is NOT a Federal Government Agency.
the BLS gathers the data, to put it in rough terms if the BLS is manipulated by politicans who have an interest in lying to the Fed, who is to say the fault lies with them?
Keep playing that Audioslave.
https://www.youtube.com/watch?v=k225_q1L9l4
Of course there is no inflation. $1 gets you four Big Mac Combo meals including soda plus a milkshake at McDonald's back in 1950s.
CPI is whatever they say it is. If beef goes up too much, they will simply substitute it for soy or something else people can eat. Definitions are meaningless when they change every year, thats basic stats 101
Well, don't worry, Stan Fischer, who I'm told reads ZH, will get right on this. Perhaps by dint of a new trade agreement. In Israel's favor. Again.
p.s. - http://consortiumnews.com/2014/10/27/powerful-lobbies-v-public-interest/
if everyone is on food stamps it doesnt matter what the price is. same with housing
You're right ... a friend on food stamps has no problem paying $8.00 per pound for hamburger ... but I do.
Unless I'm mistaken their montly allowance didn't increase and some states lowered it.
They'll be the first to complain if it doesn't last them the entire week now.
i would say the guy who thought up hedonics is a communist plain and simple, he wants everyone to consume the same amount of protein, while the managers eat steak, the poor eat textured vegetableprotein and they drive Kias. and making these things affordable is their duty. in their world (hedonically driven choices) your standard of living is actually falling, and through (economic and monetary progress) your chance of actually getting ahead through work is nonexistent. (remember time and a half for overtime?)
they know if they didn't keep you fed and housed and moving about like good ants, that you might hoist their heads on a picard. like the old rolling stones song, you cant always get what you want, but you try sometimes, you get what you need. funny how so much of popular culture only supports the economic policy gurus efforts to propagandize their policies. yes things should cost more, but you should able to buy them. the only real inflation has been in the wealthies share of the pie, and no one ever got wealthy on time and a half for overtime, ask your grandfather, how much of that double shift went to taxes.
Overtime work seems to lead to health and social problems. A guy works 60 hours, so he rewards himself with a 12 pack. Or he just gets worn out. Too often, one of his children becomes a drug addict because he wasn't around to give him or her guidance.
Over the years, coworkers who worked crazy hours ended up getting the flu and missing work for a few days. So then they get unneeded antibiotics which leads to a vicious cycle of sinus trouble, etc.
Interesting article to say the least. This past weekend, headed out to the country for a hike. Stopped at a farm that sells organic meats, veggies, etc. and spoke with the rancher/farmer. Very friendly, showed us around his property, and gave us a tour of his livestock. After that headed over to the butcher area. I was suprised on the amount of money he was selling non GMO, non hormone food for, ie 1 pound of "bacon" (couldn't call his pork bellies "bacon" per FDA guidelines as they did not contain preservatives) was approximately $13.00, but I do have to say it had very little fat and was very tasty. Pork shoulder about the same per pound... I asked him why his prices were higher than a markets prices, without trying to offend him, and he indicated that the reason food in markets are so cheap is a couple of things, 1) heavily subsidized, 2) hormones reduce feed costs and maximize size, profits in the shortest amount of time. He mentioned if it were not for these two main reasons, food in the grocery store would cost what he was selling for, or more.
I truly believe people are in for a rude awakening here soon... especially when it comes to food and costs.
http://www.gunsgrubandgold.com
I live in a rural area. My neighbor sells pastured broilers, fed non GMO feed. $5.00 per pound for whole birds, boneless skinless breast $14.99 a pound.
I have laying hens. When I first started them in 2008 I could sell eggs at $3/dozen and make enough to pay for the chicken feed and keep my 2 dogs fed.
Since then feed prices have pretty much doubled. I'd need to get at least $5/dozen to break even and people won't pay that around here. Walmart eggs are the egg of choice evidently.
The economy of scale of factory farming is such that it hides the degree of inflation. The small producers feel it the most and that is why their prices seem high compared to a typical grocery store.
You are right.
Rude awakening dead ahead.
Absolutely. I know for a fact that feed has hurt many livestock owners. In fact, I enjoy going to the livestock auctions, only to find after the auction, several horses, cattle, etc. with signs taped on them saying free to good home. Auction owners indicated that people just cannot afford to feed their livestock and if they do not sell, they simply leave them there... which, thank god for non profits, usually find a good home at pasture...
I price shop, use ad matching, etc. and I still feel like I received the swolen meat stick in the ass after I leave the store... hardly nothing, and yet my pockets are 200 bucks lighter. Then I look at the FSA and all the shit they are buying, at taxpayer cost, and wonder what in the hell I did wrong in life by seeking higher education, serving my country, and trying to be productive... I might as well wear a "Sucker" shirt 24-7...
What i enjoyed about the visit to the farm/ranch was the fact that a young former Marine was working there as a ranch hand... country boy from Missouri. Got to talking with him and he said after he did his tour, he worked for a few corporations (professional), and said to hell with it. Basically whatever money he was making in California was being sucked back into the system just to survive (pay bills), which became an endless rat race. So he moved out of state and settled at this ranch. He indicated that the ranch owner pays him mostly in food, some cash, free place to park his RV, etc. Indicated the hardest day on the ranch was better than the best day in corporate America. He actually felt at peace, and that he contributed something to society. Plus we got to talking about survival, and he indicated that things are not looking good, and god help us when it goes shit south...
www.gunsgrubandgold.com
So where do you buy non-GMO feeds for your livestock? All beans and corn grown for many counties around 46391 are GMO. The rest of the country too, I'm told. You could feed the chickens wheat as I do. But they will eat an equal amount of hog ration if it is offered to them. Oddly, them spoiled birds won't eat boughten layer mash at all. But my ten hens can have anything they want. Even if they have to scratch for it.
I work in fat hog production.
The ranch I was on apeared to be 100% free grazing. Granted, I did not see too many heads of cattle (but then again they may have been in the back country), but the land he was situated on was extremely fertile... hogs, and cattle were grazing on open range, did not see too many bails of hay or bagged food laying around... next time I am out there I can ask if you are interested... I try to head out that way at least once a week, on weekends...
www.gunsgrubandgold.com
After consulting my crystal ball, here is a summary of the future:
- global GDP turning red
- the USD index plunges, soaring inflation within the US, devastating deflation all over the rest of the world
- central banks desperated, printing like crazy without any meaningful effect
- governments start to nationalize banks and corporations
- one world currency being discussed
- emergency law enacted, judgement mortgage, dispossession, confiscation, gun ban
- intensification of international cooperation
- double digit negative GDP
- hunger crisis, mass migrations, martial law, state directed measurements, more confiscation
- starvation, executions
- globally planned economy being enacted but fails to help as disorder spreads everywhere all over the planet
- mass starvation, gang warfare, radioactive contamination due to unserviced nuclear power plants
- >99,99% of humanity died
- dark ages starting about 2045, end of history
However, the crystal ball felt uncertain about Ebola and war.
GMO Ebola from US Biological warfare labs in Liberia and Sierra Leone. Endless war are the last two.
If you understand it matters not what is best for the American people but only what is best for the Corporations. You will understand the ass fucking the people have been taking for 100 fucking years.
Yeah, I say fuck a lot.
Welcome to how most of the world lives, and your grandparents, or their parents, mostly lived.
Many of our great grandparents weren't totally dependent on just-in-time delivered corn by-products for survival.
Spot on! I keep trying to drill this into peoples heads - have a few months of food on hand, but for the most part get laughed at. The fall back is that the stores will have food... I kindly remind them that what I was talking about for the 30 minutes prior indicates that JiT is in place and they do not have "extra" food in the back. I still get the deer in the headlight look... oh, well, only so much you can do...
It was like last night, went to the hospital to see a family members new baby. First thing I did was put on a mask (free at door). My sig other looked at me, and I told her, there are only three reasons why you come to a hospital... 1) to be born, 2) to die, 3) you are sick... and at the moment I do not feel like doing any. So as we walk through, people were just staring at me. One little girl looked at her mom and said is that man sick, to which I turned and said no, and that is why I am wearing the mask, to keep it that way. The mom smiled and said see, he is smart, and got up to get a couple for herself and her daughter.
The baby ward RN gave me a rash, and I explained three ways to Sunday that I was not sick, and that I was wearing it so that I do not get sick. She said that the baby ward was sterile, to which I chuckled and said ok, but what about the rest of the hospital and the walk to get up here... she just looked at me and waived me through...
www.gunsgrubandgold.com
You forgot to list a dozen eggs. On last check, the price was up 30%.
2 years ago, butter on sale was 2 bux a pound, offsale around 2.50. Now sales are few, and a sale price is 3.85-4.00, low price brands regular price 4.50, and I have seen over 5.00 recently. Did the number of dairy cattle decrease dramatically, or is it all inflation and not supply issue?
#Ebola
...its not always Ebola:
Cuba says a member of a medical team it sent to fight Ebola in West Africa has died of malaria.
Latest:
https://tersee.com/#!q=ebola&t=text
luckily americans don't need dairy and meat protein - they can just load up on more refined carbs
250,000 a year and you're a one %er? Really...
Exactly. That's how poor they have made the rest of the world to where 250k puts you in the 1%. Remember the average salary is like 40k. We are basically slaves, that get to watch football and pretend we live in a free country.
And making $250,000/yr is the equivalent of about $33,000/yr in 1964. That's how badly they are fucking things up.
And if you make $250K a year and you have two weeks pay in your pocket, about $10,000, then you are a criminal who needs to be reported. In 1964 having about $1400 in your pocket would have gotten you reported, but such laws did not even exist back then.
1% income maker yes.
1% net wealth is hovering around 8.5 million or so. (for USA)
The Fed is ground zero for ALL the problems in the world today. The ability to create money out of nothing breeds rampant curruption at every level of govt. and business. The ability to create money allows massive war machines to be built that threaten the world and the very existence of all humans on earth. They can brainwash the masses through their controlled media. They are the TRUE death merchants bringing hardship disease and pestilence to the world. What is the difference between an American and an Iranian? Religion? Skin color? Language? Other beliefs? A Ukranian? A Russian? A Chinaman? Are ANY of these things worth KILLING each other over? No. It's about MONEY AND POWER. When you join the Army because you need a "job" you are part of the killing machine. Killing people ISN'T a "JOB". Our very standard of living is based on war. We live off the backs of those we slaughter overseas. BURN DOWN THE FEDERAL RESERVE and STOP this insanity. Hang all politicians for treason. hang all Banksters for treason. Hang all your local politicians, judges and police chiefs for treason. It's time to shut down this corrupt government that is now stealing everything we have and destroying our childrens futures so the few can live like kings. Treason people, THAT'S what they are committing against the American people and we all KNOW what the penalty for TREASON is.
the moment that yellen gets ebola and dies, the better off the world will be
Never happen. Short, fat, ugly warthogs are imune. One of life's injustices.
We are Americans who in 2009 moved permanently to Odessa, Ukraine (soon to move to our newly built - over the last 2 years - house in Crimea).
1.) We deposit only U.S. dollars (USD) into our bank in Ukraine - and by law, any Ukrainian bank accepting a particular foreign currency as MUST set up for you a separate account for that currency; and so any USD deposited into that account MUST be redeemed to us as USD
2.) One year ago the exchange rate was about 1 USD for 7.8 UAH (Ukrainian Hryvnia - pronounced "Greev-na"). Recently, the exchange rates have varied between 1 USD for 12.99 to 13.99 UAH - thus the USD has increased in value relative to the UAH by 66% to 79% over the last year. (I did a brief analysis of exchange rate changes over time, and it appears as though "someone" - perhaps the Federal Reserve? - is doing periodic "currency swaps" or whatever to keep the UAH from collapsing even further.)
3.) Since we exchange USD for UAH only as we need UAH for everyday purchases, the "buying power" of our USD has increased greatly, even with the slight increases in food prices. Same for the Euro.
4.) Ukraine is known as the "Europe's Breadbasket" and produces all kinds of grains, vegetables, fruits and meats. In terms of the UAH, prices have increased slightly (perhaps 10% on average) for foods produced in Ukraine. And during a particular vegetable or fruit's "picking season", the farmers flood the city with these products - often sold from on every street from sidewalktables or trucks parked nearby - so the intense competition results in DECREASED food prices for everyone!
5.) This does NOT apply to IMPORTED products (foods or otherwise), whose prices have risen substantially in terms of UAH. But the 2 malls nearby, selling primarily imported products, are still filled with shoppers - so SOME locals still have a lot of money to spend.
These currency exchange rates are GREAT for people with certain foreign currencies (especially USD and Euros), but are hurting very badly the ordinary Ukrainian people, especially re: imported goods! (A few professionals, such as physicians and dentists with private practices, sometimes insist on payment in USD or Euros, but that is strictly illegal in Ukraine.)
Of note: A few days ago I read online in our former "local U.S. newspaper" that the sole ELECTRICITY supplier to a large part of our former state was next month increasing electricity prices by 37% - with possible further increases before the end of 2014. WOW !!!! Their rates were ALREADY very hign when we left in 2009. But with most of the coal-fired electricity plants being closed due to Obama and the EPA, such increases were to be expected.
Luckily, most houses in that part of the state (as well as most of New England) use OIL or NATURAL GAS for heat, although I have a few friends with homes (built in several housing deleopments in mid-to-late 1970's) with only ELECTRIC heating. Howver, most have long since converted to OIL and/or installed large, extremely efficient wood stoves in their basements, complete with hot air ducts installed within walls and vents in all rooms - where a few logs tossed into the wood stove will heat their entire house all night or all day. One was my brother (in his former house) who each fall would have about 7 cords of wood delivered; then we (meaning he and I) would toss it all into his basement and stack it. Oh, for the "good ole' days" !!!!! (After a few years of that, he had a new house built with OIL for heat.)
Chart Porn and Inflation Porn were meant to be together.
Had a little place could get $5.98/lb Ribeyes or T-bones for the Tuesday specials. Now it's $9.98/lb on Tuesdays and regular prices are close to everywhere else, $12.98/lb. But have a freezer and did load up.
Would also recommend stocking up the freezer with turkey and spiral sliced hams during the holiday specials and to check out the animal auction houses and butcher shops everywhere. Families can split a calf, pig, or sheep for the freezer and do great without ever touching an animal.
Meat doesn't grow in grocery stores like POP Tarts and Doritos.
Content makes poor men rich; dis-
content makes rich men poor. - Ben Franklin
Food isn't counted as inflation because Human Cattle do not need to eat, they need to work and die promptly.
I have come to the conclusion that while inflation appears tame and government claims it is low it is growing. 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. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/06/inflation-lurks-beneath-and-hidden.html
butter up 40+% in 3 years.
mantaquilla !!!!!!!!!!!!!!!!!!!!!