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How The U.S. Government "Covers Up" 72% Inflation Before Your Very Eyes

Tyler Durden's picture




 

Dear Bureau of Labor Statistics: please pay careful attention to this case study of how your CPI "inflation" gauge, hedonically, seasonally-adjusted or otherwise, is completely inaccurate, and how what you record as 0% inflation is really 72%.

As Consumerist points out, for the latest example of "stealth inflation" we go to Sodastream, where as part of a redesign of its proprietary line of flavoring syrups which "cost the same" the actual bottle contents are now not only smaller but also diluted.

"How much smaller? The old version made 50 servings of flavored drink, and the new versions make only 29. Why 29? Why not 30? Such are the mysteries of the Grocery Shrink Ray."

Consumerist shows that "the new bottles are somehow taller even though they’re smaller. On the positive side, they no longer look like petite laundry detergent bottles."

Furthermore, while the number of servings is down to 2/3 of the original amount, the bottle size isn’t that much smaller. That’s because the measuring cap is now bigger, and each serving uses more syrup. "The worst part is that they just diluted it with more water so the ‘new improved’ ones LOOK like they are the same size," reader Erik complained to us. “They are 440ml instead of the old 500. EVIL! Free the bubbles! Stop this shrink ray occupation of my favorite soda!”

The old versions are still available on SodaStream’s site for now, as "Classics," but readers report that they only find the shrunken version in brick-and-mortar store.

Consumerist' conclusion: "maybe SodaStream made this change because they know that the product still looks reasonably priced next to its new competitor, the Keurig Kold. Maybe."

Actually, why SodeStream did this is irrelevant: we are confident the decision to shrink and dilute the product was the result of simple concerns about maximizing profit margins.

What is far more troubling is that for the Bureau of Labor Statistics, both the "old" and the "new" product costs the same, or $5.99, hence there is no inflation... until one does the actual math.

Presenting the "old", Dr. Pete soda mix, the one which is no longer available in bricks-and-mortar outlets, which costs $5.99 and which makes 50 servings per bottle.

 

And here is the new one: available everywhere for "the same price as the old one" but with one small difference - it makes only 29 servings per bottle.

 

The math:

  • Cost per serving "old" style: $0.1198
  • Cost per serving "new" style: $0.2066

Nominal inflation: 72.4%

Worse, there is not even an attempt to make the "new" product "hedonically" better, or for that matter different in any way - it is just smaller, and massively diluted.

And it just so happens that nobody in the Bureau of Labor Statistics noticed this oldest trick in the book, and why month after month the BLS reports core CPI that is negligible, and why said "lack of inflation" allows the Fed to continue its zero-interest rate policy for 7 consecutive years in a row.

 

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Sat, 10/24/2015 - 02:56 | 6705666 NidStyles
NidStyles's picture

Your soil is too soft and you're not watering evenly enough.

Fri, 10/23/2015 - 19:31 | 6704672 lunaticfringe
lunaticfringe's picture

Soda fucking stream? That's the best you guys could do?

I can live without 5 bucks worth of soda- it's the 9 grand worth of force placed Obamacare that's kicking my ass.

Fri, 10/23/2015 - 19:32 | 6704677 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Sell moar air; less product, same size container

 

Fri, 10/23/2015 - 19:35 | 6704690 Pure Evil
Pure Evil's picture

I'm still waiting for my bag of chips with just one chip in it while costing me $20 a bag.

Fri, 10/23/2015 - 19:44 | 6704721 DeadFred
DeadFred's picture

"Bag of chip" Who wouldn't pay $20?

Sat, 10/24/2015 - 11:09 | 6706246 GMadScientist
GMadScientist's picture

The chips are from an insolvent casino of great reknown.

Fri, 10/23/2015 - 20:08 | 6704826 herkomilchen
herkomilchen's picture

Don't worry.  It's coming.

Fri, 10/23/2015 - 22:46 | 6705327 IndyPat
IndyPat's picture

Soylent Green will solve this.

Sat, 10/24/2015 - 11:10 | 6706249 GMadScientist
GMadScientist's picture

That's one blase hooker.

Fri, 10/23/2015 - 22:32 | 6705288 A Nanny Moose
A Nanny Moose's picture

I think you're onto something here.

Fri, 10/23/2015 - 19:39 | 6704699 scatha
scatha's picture

In the “real” US economy inflation is rampant and warrants double digit interest rates at FED, just look at basic staples eggs, beef, chicken and other foods, rent/housing, education, even transportation and telecommunication cost are “effectively” raising, not to mention medical care, all those things people need to live are raising precipitously.

Even those 1%-ters facing massive inflation forced to buy risky bonds at unbelievable high prices to get any yield at all. The global inflation bubble is here while global demand is dying and commodity nominal prices are collapsing as we speak since with such a high “real” prices everybody expects loss or severe decline of income or profit in the future expressed by a dead body of CapEx and consumption.

On the top of it typical the inflation hiding maneuvers of the retailers producing serving size inflation, quality collapse inflation, component substitution inflation, choice narrowing inflation, package cost and quality inflation, air conditioning, freezing/heating power limitation inflation, shopping experience quality collapse inflation, and other manipulations to keep so called nominal “at the store” price marginal increase of few percent only per year but even that was impossible in 2015 so far.

That's will make true nominal inflation total at least 25% a year on retail side alone, not to mention gigantic health care and insurance inflation, education inflation, rent inflation, etc.

This combined with collapse of wages/benefits/other incomes produces about 50-60% “real” inflation/year. That's why all retailers cheat about their sales because in response to such big inflation drastically cut spending as only thing they can do. They go to store 50% less times and buy 50% less in dollars then before per trip, the sign of collapsing standard of living. Service economy, except for pockets of cronies of the ruling elites, is collapsing as well, now you can get a haircut for $4.99.

All these are signs of hidden “real” super-inflation (not yet hyper) in the collapsing economy seen through almost halting the transaction volumes and collapse of money circulation in the society of 99%. But as long as this Washington D.C. Regime persists the nominal hyper-inflation will not be allowed because of political malleability of the Americans but instead the expropriation will continue to be executed in other ways mainly through measured nominal deflationary spiral.

In simple words peoples income and their basic assets will continue to be depreciated so the assets or services they need to survive, food shelter will continue becoming less and less affordable (beyond the price reach) and hence demand will continue to collapse until acute social de-cohesion and massive social unrest occurs.

All of it is not due to the laws of economy but deliberate policies of government to give a chance for oligarchs to concentrate the capital, monopolize the markets and transform the economy into rent seeking feudal outfit to be bail out by the people again and again.

All FOMC members behave like suicide bombers running around in their vests in the warehouse full of explosives shouting that everything is under control as long as we won’t push the button even 0.25% of it but only until their job, building a brave new world for themselves is completed.

When people find out, especially courtiers (government, corporate employees) of the system that there are being screwed as well, all hell will break loose. FED printers will roar to shut them up in US. Therefore, they are careful not to mess up good thing going as long as they can.

More on the scam of evaluating inflation in various forms including CPI I found at:

https://contrarianopinion.wordpress.com/2015/01/29/invisible-hand-and-ot...

Fri, 10/23/2015 - 20:28 | 6704890 Karaio
Karaio's picture

Most know that I am Brazilian.

I refuse to write in English, write in Portuguese, use the Google translator and post here.

A matter of principle (I read what you write and you fuck them to understand what I'm talking about) kkkkkk.

An Army with women and fags (gay), was once the Roman Empire fucked.

An empire with many rich and slaves ...

I have talked to many "bloggers" military Americans, Germans, English, some Russian (very few, two).

What is recurrent in the talks is the decline of the Empire (for my part, will help to Americans citizens to return home).

It's insane you have between 800 and 1200 military bases around the world!

It's insane you have a single largest aviation gasoline spender (the Air Force North American).

It's insane you meddle in all countries.

It's insane you kill so many people in exchange for money and power.

It does not happen that "I am North American and it was my government that did it, I have no guilt."

You voted for the sons of a bitch who did this shit, you spread democracy, you are the bulwark of democracy then;

Every North American citizen deserves the change.

Did you ever think of that?

Best review, taking fat ass off the couch ...

hehe.

Fri, 10/23/2015 - 20:53 | 6704970 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

You are, unfortunatly, spot on.  Maybe you could send Dilma Rousseff up here to straighten our shit out.  Peace.

Fri, 10/23/2015 - 21:55 | 6705177 Not My Real Name
Not My Real Name's picture

Nao preocupe, Karalo. A crise cambai esta changando e quando se chega aqui, tudo isso besteira vai.

 

(Not to worry, Karalo. A currency crisis is coming and when it gets here, all of that bullshit will finally stop.)

Fri, 10/23/2015 - 22:03 | 6705203 newworldorder
newworldorder's picture

Let me give you two thumbs up and one thumb down.

 

UP - I am happy you identified yourself as Brazilian and not Hispanic. At least you have pride of ancestral identity.

    - Also happy that you recognize the absurdity of the US doing in the world or to the world most of the things that you have written.

DOWN - Please do not be sanctimonious or condescending to US citizens. Many recognize the truth of your words, but if it were not for the US and the empire, you would not be living the life of comfort that you are living.

- Someone has to protect the sea lanes and that job falls to the US Navy. Goods go from China to Brazil without interruption as fast as they go to US.

- The numerous bases that are bankrupting the US protect every business corp including former communist countries  doing business.

- American soldiers are getting killed so that Brazil does not have to send its Army to Italy as it did in WW2 to assist the allies.

- Since Korea the World has had a free ride on the protection of all national sovereignty for most countries.

- Not free of charge, - But the US FED, the IMF, the World Bank, the BIS have funded - for their own gain,- all manner of folly in every continent of the monetary world. Everyone has been very happy to play musical chairs. Realistically, no county is immune from the greed and desire that feeds off the American Empire.

Frankly the US has been very stupid to have done all this, by providing almost unlimited capital to all, but what can the American people do?

The money merchants want their money and there are all manner of dictators in the world who welcome the American FED dollar. Is is  debt slavery money as many South American countries have discovered. it does however feel good to most when they see those magical numbers in the millions flash across your banking customer screen. You are as guilty as the rest of the world and maybe not as guilty as the American citizen who allowed for the trillions of foreign aid to be sent to the entire world since the end of WW2.

If you want to do something, get off your couch, kick your dictators out of office, kick the Yankees out of your own country and as a country of strong Brazilians stand on your own two feet.

 

 

Fri, 10/23/2015 - 23:01 | 6705366 IndyPat
IndyPat's picture

He's a douche.

What's this North American shit?

Kkkkkkkkkkk!
What does that mean, in any fucking language?

Brazil is really setting the example, though...right? Olympic fucking turdbowls for athletes to compete in. Oh yeah, your country is about to be showcased big time.
You get your shit straightened out down there, then you come on back and give us your helpful opinion. Until then, go pick up turds off the beach, kkkkkkk?

Sat, 10/24/2015 - 11:18 | 6706269 GMadScientist
GMadScientist's picture

Are you claiming Rio is much worse than the South Central LA 'Lympics, dog?

Will you be in the marines taking over Brazil when we need their offshore oil to keep your pick-em-up truck runnin'?

Fri, 10/23/2015 - 23:46 | 6705449 Karaio
Karaio's picture

new world order:

I'm shitting and walking a troll like you!

My father's family came to Brazil in 1870, the Teledzinski.

My mother's family came to Brazil after the IWW, Schacherl surname.

I do not have a black drop of blood in my vein.

I am Brazilian, it probably bothers you.

Never play with this feeling of "being Brazilian."

You fucks.

At.

Alexandre.

Sat, 10/24/2015 - 09:12 | 6705988 New_Meat
New_Meat's picture

Giselle's family is from Brazil.

Sat, 10/24/2015 - 16:47 | 6707063 Hulk
Hulk's picture

Give me Feijoada or give me death !!!

A great, great winter food, but it makes me sweat like a son-of-a-bitch in the summer...

Sat, 10/24/2015 - 11:15 | 6706263 GMadScientist
GMadScientist's picture

At least you recognize that the US military is really the defense wing of multinational (NOTE: NOT US) corporations, but you've failed to recognize that this privelege has been used to lever cheap labor out of more countries than it has lifted out of poverty.

The Brazilian was wrong to single out the US, it's an endemic plague over the entire world, EU, Rus, and China and has been since colonial exploitation was a thing.

Sat, 10/24/2015 - 01:38 | 6705599 Karaio
Karaio's picture

Son of a bitch!

Kkkkkkkkkkkkkkkkkkkkkkkkkkkkk

The only country where Japanese play is Brazil!

I will draw to you fools Americans:

Before the global IIWW between 1914 and 1935, the Japanese government made an agreement with the Brazilian government.

The Japanese bought land in droves in the Registration area (São Paulo) Kaigai Kogyo Kabushiki by Kaisha (Development Company).

At that time, there were Japanese out the drain.

They sent it to Brazil.

In the 90s a lot of sinobrasileiros went to work in Japan if fucked.

The Japanese did not accept those Brazilian guys right.

Japanese is racist pacas, you can not imagine how much.

All my Japanese friends who were working there, returned.

Good, better stick around, I have already given many hints of what is to be Brazilian to you.

hehe.

Sat, 10/24/2015 - 14:13 | 6706684 Richard Head
Richard Head's picture

Brazil sucks dick so shut your hole.

Fri, 10/23/2015 - 19:41 | 6704712 FedFunnyMoney
FedFunnyMoney's picture

Your chocolate ration has gone up to 29 grams, from 30 grams.

This is in celebration of Oceania's glorious victory on the Syrian front.

Long live Big Brother.

Fri, 10/23/2015 - 19:49 | 6704738 Ms No
Ms No's picture

Womens clothing is getting more threadbare by the day, you have to layer two shirts in order to avoid looking like some desperate attention whore with no class who wants to wear see-though clothing in order to attract a pervert in a desperate attempt to survive our atrocious economy.  The grade, middle and highschool girls are wearing shorts that are practically swim suit bottoms, it seems rather convenient that new "style" allows for next to no material being required.   

I have a shirt that I probably paid too much for over 15 years ago but it hasn't faded detectably at all and looks brand new.  If you want anything that lasts you have to fork over some serious cash these days.   

Fri, 10/23/2015 - 20:02 | 6704802 Crocodile
Crocodile's picture

Tennis shoes are now made with Nerf material, costs more and barely any rubber for grip.

 

People buying those obnoxious Nike's in blinding colors for $75-$250 or more. 

Fri, 10/23/2015 - 22:34 | 6705296 A Nanny Moose
A Nanny Moose's picture

Zola Budd got it right 30 years ago. Bwahahahah!!!!

Fri, 10/23/2015 - 20:32 | 6704900 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

"...looking like some desperate attention whore with no class who wants to wear see-though clothing..."

Where's the problem again?

Fri, 10/23/2015 - 23:20 | 6705401 tmosley
tmosley's picture

Men's clothing. Also, clothing for fat chicks.

Sat, 10/24/2015 - 09:13 | 6705991 New_Meat
New_Meat's picture

clothing for fat chicks is doubly inflated: a) more surface area while b) more need to cover things up.

Fri, 10/23/2015 - 20:34 | 6704907 Parrotile
Parrotile's picture

In Oz most schools have a reasonably strict Uniform code, which causes anguish to Parents 'cause the re-fit cost for fast - growing kids is not insignificant. It is interesting that many (though not ALL) School Uniforms are now made overseas. Used to be Phillippines, now more commonly China.

For Parents with an age-range of children (attending the same schools), there used to be the option of "Little sister getting Big sister's old Uniform" but quality has faded a lot, so by the time Big sister has finshed with her uniform, it'll be well past its best.

 

 

Fri, 10/23/2015 - 23:03 | 6705370 IndyPat
IndyPat's picture

Jeans are made of fuckin tissue paper

Fri, 10/23/2015 - 19:49 | 6704741 lunaticfringe
lunaticfringe's picture

I just use the Chapwood Index or as I like to call it, the Chapped Ass Index.  http://www.chapwoodindex.com/

Fri, 10/23/2015 - 20:45 | 6704903 LowerSlowerDela...
LowerSlowerDelaware_LSD's picture

It's a great index but they need a better name.  It sounds like a porn star gone bad: Mr. Chapwood <play funky music here...>

Fri, 10/23/2015 - 19:53 | 6704754 Crocodile
Crocodile's picture

Shrink-flation; been going on since 2007 - old news.  Maybe the writer just starting shopping.

Sat, 10/24/2015 - 09:40 | 6706046 New_Meat
New_Meat's picture

Guessin' u weren't around during the reign of the second worst President in U.S. history.

Fri, 10/23/2015 - 19:56 | 6704769 ThrowAwayYourTV
ThrowAwayYourTV's picture

They're hiding it in Lumber too. Something most people dont buy so dont see the inflation.

In the early 90's I paid between $8 -$12 for a sheet of 1/2" cdx plywood. The same stuff is $26 a sheet now.

Just bought a bunch of 2x10x12 pt at a whopping $18 a piece. Now thats not inflation, it's straight out rape.

But thats another way they are hiding inflation. They're putting it in places most people dont see and letting the ones who do buy the stuff flip the bill for the rest.

Sound familiar? Its the same as welfare and health insurance hide and go seek.

Fri, 10/23/2015 - 20:14 | 6704843 Jendrzejczyk
Jendrzejczyk's picture

Check out what's happened in the electric department.

$17 dollar roll of 14/2 wire is now $37,,,which is better than the $60 it was a while back.

The $4 dollar breaker is now $65 because manufacturers and insurance companies now control the NEC code panels...

and the .32 cent outlet is now almost a buck for the same reason.

"You can't idiot proof the world, and you shouldn't." TM

 

Fri, 10/23/2015 - 20:35 | 6704912 ThrowAwayYourTV
ThrowAwayYourTV's picture

Whenever I see a new house going up these days I cant figure out how anyone can afford it.

I used to get a whole house in the 90's worth of lumber dropped on the site for around 5 to 7K

Shit! Either theres a lot of idiots out there or money just happens these days.

Sat, 10/24/2015 - 01:42 | 6705602 Vendetta
Vendetta's picture

what do you expect when a country has loan stores called "Money Tree" and they are allowed to exist ......

Fri, 10/23/2015 - 20:21 | 6704851 cowdiddly
cowdiddly's picture

Thats what you thought. A 2x 4 is now 1 1/2 X 3 1/2 x 12 boards and the plywood is 15/32

Their lame assed excuse for this is you add 1/2 inch of sheetrock to both sides and, walla-- 4 inch wall. The plywood? They did'nt even bother explaining it.

Fri, 10/23/2015 - 20:28 | 6704889 ThrowAwayYourTV
ThrowAwayYourTV's picture

Got to watch the layers too. Theres 1/2" plywood in 3 layers and 1/2" plywood in 5 layers. The 5 is better but most jst figure 1/2" is 1/2". Usually, Lowes has 3 layer crap and Home Depot has the 5 layer. I would rather use Home Depot stuff, its better quality, but its a longer drive for me so it has to be worth the drive.

 

Fri, 10/23/2015 - 22:21 | 6705010 cowdiddly
cowdiddly's picture

My favorite one is the giant indented bubble they blow on the bottom of the jars so the jar so the smaller jar looks almost as big. Pisses me off because you cant even get all the product out of the peanut butter/mayo/pickle jars.

I live rural and I have to haul my own trash and everything is just packaging now causing more runs to the trash.

And coffee, no 1 pound or 3 pound can and you can tell they are changing the formula sneaking in the cheaper Arabic bean vs South American giving you less smooth and more bitter drink. Its now some goofball size like 11oz or 40lb bags of cement so you have to buy 20% more bags.

More and more packaging and trash.

And Packaging scams. I paid 2.99 for  a package of 3 rubber cone washers for water lines under the sink you used to could by for a nickle at a hardware store and these dinky washers still only cost pennies to make by the millions in China.

Whats the difference Today vs yesteryear? Its not the workers paychecks. Its so some fat assed CEo can have jet fuel for his own private jet and be paid 300-1000 times his employees salary where it used to be about 30.

This crap from China is made for a few cents by the billions in China and being marked up like it is some kind of quality good.

I bought a simple plain stainless hallway light fixture for the ceiling at Lowes complete with Made in China sticker for 44 bucks and tax. I got it home and it has some kind of weird bulb base that I did not have a bulb to fit. I got mad and took the POS back, I went to Home Depot and found a contractor pack of two similar lights for 19.00. And that was still about a 1000% markup from the  cheap 2 dollar  Chinese light fixture.

Companies like Mom and Pops always marked up things double to triple for a retail sale but now these Corporate fucks are just trying to rip you off for every dime with no shame whatsoever. Fuck their corporate products and their lear jet, I try to by used, make it myself or someone I know, or make do or do without if I can.

This computer Im on, I made it. The solid quarter sawn red oak desk it sets on, I made it. And the house its In, I built it and the rest of my furniture an Amish dude made. I customized the old vehicles to go get the stuff. Did I know how to build any of these things when I started? Hell no. I got off my dead ass and learned by doing. And you Know what? The house has already survived one tornado. The desk will be an Heirloom before it wears out, the cars and truck will run forever, and the computer will run until its a dinosaur, the software was free and customized the way I like it. Ill let you cram your IPAD and windoze 10 spyware. Your tracking mobiles and your particle board furniture. YOU GET NOTHING

Sat, 10/24/2015 - 03:16 | 6705685 free
free's picture

Fuck their corporate products and their lear jet, I try to by used, make it myself or someone I know, or make do or do without if I can.

+1000

Yup, same here.

Vote with your wallets, people.

 

 

Sat, 10/24/2015 - 10:20 | 6706114 FreeNewEnergy
FreeNewEnergy's picture

cowdiddy, always love your comments. I could go on and on about new vs. used. I drive a '93 chevy van, so you know where I'm coming from.

Just finished converting a shed (not mine) to an apartment. All fucking cheap Chinese crap, way overpriced. Flooring that's basically paper, same with the paneling.

Meanwhile, my property about 10 miles north has a 1984 motorhome with all the bells and whistles (paid $500), 5.7 acres and I just moved all my stuff (I'm still in pahse two of my move - phase three is building, next Summer) from a 40-ft. container to a makeshift storage shed made from pallets, tarps, T-111 and old 2 x4s. Works for me.

Funny thing is I told the container people - from whom I was renting the storage container - that they could move it out since it's empty. That was over a week ago. My rental terminated on Wednesday. The thing is still there and they sent me another bill for another month. The whole shooting match is $133 a month, not too bad, but I'm done with it.

If it's still there Monday night, I'll be sending them a bill for rental on my property at $20 a day. That ought tostraighten out their asses in a hurry. Can't trust anybody these days.

Sat, 10/24/2015 - 15:38 | 6706876 hardmedicine
hardmedicine's picture

Please people, check out the Habitat for Humanity store in your community or city they are called RESTORE.

There are warehouses full of quality used and second hand materials at a fraction of the cost.  That's where i go when I can.

Fri, 10/23/2015 - 19:57 | 6704772 Usura
Usura's picture

Many fat Americans will benefit from this.  All hail mayor Bloomberg.

Sat, 10/24/2015 - 11:20 | 6706275 GMadScientist
GMadScientist's picture

One does wonder about people complaining about the rate at which they can poison themselves.

Fri, 10/23/2015 - 20:00 | 6704785 honestann
honestann's picture

No wonder the federal reserve claims to have so much trouble generating "2% inflation".  THEY LIE.  Of course, we've all known that for many decades.

Fri, 10/23/2015 - 20:14 | 6704804 nakki
nakki's picture

So a serving is 8.18 ounce. You can buy Pepsi or Coke in a can for less. For $6 you can buy 6, 2 liter bottles of soda (5 liters for free). I love the 2/3 less sugar (sugar costs money) must be heathy. Ever friend who got dupped into buying one of these things tells me that because they have less sugar the kids use more syrup. Most everyone I know stopped using theirs.

72% less and your still going go use more. Sugar must be really expensive. 

Sat, 10/24/2015 - 06:45 | 6705829 Moe Howard
Moe Howard's picture

Israel does not just screw Palestinians, they got you too and rest of the SodaStream suckers.

Sat, 10/24/2015 - 11:22 | 6706279 GMadScientist
GMadScientist's picture

If you're patient and don't live in Cali, you can have a glass of water for free.

Fri, 10/23/2015 - 20:03 | 6704806 Ms No
Ms No's picture

In Arizona we have alot of old people and widows, both men and women.  There is a lot of money here but there are also plenty of retirees who bought here long ago when prices were cheap and they do not have a lot money to spare on this Bullshit inflation.  Everytime I see an old person at the store shopping with what seems to be the utmost care in relation to what they can afford and fighting for their discounts at the register it just ruins my day.  Screw these parasitical banking assholes.

On the bright side of things, these old widows can still sport their wordrobe from 40 years ago until their very last day on Earth because America used to build quality products and they are secure enough to not give two shits what anybody thinks about it. 

Fri, 10/23/2015 - 20:17 | 6704849 taopraxis
taopraxis's picture

I retired young and I am now 63. I consider myself extremely knowledgeable, financially speaking, but one thing I never planned for was zero interest rates in perpetuity. Why would I? ZIRP is totally unique in history.

ZIRP cut my income on my cash position to nothing seven years ago. I do trade but no oldster can afford to expose themselves to the risks of the markets in a major way. Lose too much money and there is no replacing it, so you need to be conservative. The positive side is that I have my health and I actually do have some money. There are plenty of people who have neither and I really do feel for them.

Fri, 10/23/2015 - 20:44 | 6704938 lordbyroniv
lordbyroniv's picture

blue horse shoe likes vintage comic books

Fri, 10/23/2015 - 22:05 | 6705210 Baby Eating Dingo22
Baby Eating Dingo22's picture

Screw you, sucker!

In your next life, don't get so cocky

Signed,

Ben

Sat, 10/24/2015 - 11:24 | 6706283 GMadScientist
GMadScientist's picture

Tough shit. The fat you dined on to retire early is the source of the current lean. Ration well.

Fri, 10/23/2015 - 20:05 | 6704809 taopraxis
taopraxis's picture

Funny article...

The truth about how the CPI is constructed by the BLS is not funny at all, unfortunately.

I've got advanced training and experience in inferential and descriptive statistical methods, e.g., linear modeling and programming, factor analysis, correlational/covariate, bayesian, data transformations, you name it...

About twenty years ago, knowing that my lying eyes were seeing stuff that did not comport with what the government was telling me, I called my congressman to complain about the BLS and asked them to forward my complaint and find out how the BLS was computing the CPI.

The BLS sent me a copy of a monograph that described their statistical model in detail.

Unfortunately, the explanations are probably too technical for people not trained in the field, but suffice it to say that I was very impressed with the way they managed to obscure the reality of price trends with statistical artifice. The big cheats were the use of a rental equivalence survey (i.e., their funky housing price indicator), the "imputation" technique which plugs in a formulaic price increase for any products that have so-called "design" component alterations (like a changing collar or color of a shirt), and their technique for accounting for hedonic product improvements, (e.g., Item X did not go up in price, it just got better). There's more, e.g., product substitution, but you can see the results quite easily for yourself. Housing had a weight of about 40% of the index. During the housing bubble, home prices more than doubled...ever see that reflected anywhere in the CPI?

What do I know, though? They're official government *experts*. I'm just some old man writing stuff on the internet.

Fri, 10/23/2015 - 20:48 | 6704952 jpc578
jpc578's picture

Interesting. I do have a question. For housing costs, does the BLS consider the price of a home or do they consider the monthly payments? If its the latter rising home prices would have put upward pressure on the house price indicator but declining interest rates would put downward pressure on this indicator. Also, the creative payment schemes mortgage lenders came up with might have also kept monthly payments down.

Fri, 10/23/2015 - 20:57 | 6704988 Stlouiemike
Stlouiemike's picture

Taopraxis I am impressed and respect your training and experience but I don't need to waste my time looking at the thief's in charge's data, I just go to the store every week and watch the same items in my cart decline with the same amount of cash.  In fact for the last 3 years there is no fresh beef in the cart because I can't afford it anymore, I am stuck buying processed frozen crap.  What astounds me is that we let them do it to us. 

Fri, 10/23/2015 - 22:03 | 6705200 Baby Eating Dingo22
Baby Eating Dingo22's picture

Carts and bags got smaller. Funniest thing is they're phasing out bags

Now it's buy and shlep our "reusable" bags or be labeled an eco-savage

I might consider doing this when I start seeing those pretentious mall stores demand their customers do the same

Fri, 10/23/2015 - 23:20 | 6705400 IndyPat
IndyPat's picture

Preach it!

That was a great comment. Puts some meat on much of what I suspected but was too out of my skill set to decode.
Keep it coming.

Sat, 10/24/2015 - 01:52 | 6705614 Vendetta
Vendetta's picture

gotta hand it the CPI calculation fuckining they've done. I studied accounting with the required micro and macro economic classes and was disgusted with it, left college. Later got an engineering degree and found out what real science was about... I didn't reckon on the globalism/fascism taking over masquerading as capitalism....

Fri, 10/23/2015 - 20:19 | 6704856 rsnoble
rsnoble's picture

Sometimes the multi-packs aren't any cheaper, sometimes even more.  I don't waste my time going to sams club anymore.  If anything I hit stores in the ghetto.

Sat, 10/24/2015 - 01:43 | 6705604 Toronto Kid
Toronto Kid's picture

Toilet paper. Costco's toilet paper is the only reason why I still pay the membership fees.

Went in there Thursday and the price of assorted nuts had jumped 6 bucks to 20 from 14. I just stood there, went 'wow' for a moment, and then found the giant cans of coffee and bags of oatmeal. Neither coffee nor oats had gone up in price yet, so I grabbed some.

Sat, 10/24/2015 - 12:22 | 6706425 Calmyourself
Calmyourself's picture

SAMS club is a straight out ripoff, you spend so much time with a calculator trying not to get ripped off its not worth it..  My time is worth more than seeking the two deals in the entire store..

Fri, 10/23/2015 - 20:25 | 6704883 cheech_wizard
cheech_wizard's picture

and yet not a single banker/politician/ceo has been gunned down, run over, or pitched off a rooftop...

Standard Disclaimer: Everything costs more, even popcorn.

Fri, 10/23/2015 - 20:25 | 6704884 Zelotai
Zelotai's picture

I live in Sweden and I have some cats.

Their favourite food which is a swedish brand recently changed their bags.

Before it was 1 kg 2 kg and 4 kg. They changed it to 900 g 1,75 kg and 3,5 kg with new design. The bags were the same size. The ingredients were the same but they also increased the price per bag with between 5 and 10 %.

It seems more customers than me noticed the scam. After some weeks they lowered the price with about 3 %, probably their sales did suffer. Inflation of 15-20 % depending on which store you bought them.

 

Fri, 10/23/2015 - 21:46 | 6705146 Baby Eating Dingo22
Baby Eating Dingo22's picture

Stop feeding those pussies and eat them instead

Sat, 10/24/2015 - 17:47 | 6707248 Hulk
Hulk's picture

That may not translate too well !!!

Fri, 10/23/2015 - 22:08 | 6705221 hannah
hannah's picture

i was reading the info on a bag of catfood in sweden the other day and noticed the same thing...but then i was distracted when a immigrant raped me.

Sat, 10/24/2015 - 12:33 | 6706446 Calmyourself
Calmyourself's picture
https://youtu.be/3KSJY0c8QWw Welcome to Sweden!!!  Where is that little manbitch Ewik???
Sat, 10/24/2015 - 11:51 | 6706333 Max Cynical
Max Cynical's picture

Zelotai, just out of curiosity, what % of goods sold in Sweden are made in China, if any?

Are a large percentage of products made in China found throughout the EU?

Fri, 10/23/2015 - 20:42 | 6704933 Hopeless for Change
Hopeless for Change's picture

Let's talk about the price of 7.62  ... no, on second thought let's not.

Fri, 10/23/2015 - 22:09 | 6705224 hannah
hannah's picture

word. sportsmans guide...cheap cheap cheap. not as cheap as 10 years ago but cheaper than cabelas.

Fri, 10/23/2015 - 20:42 | 6704934 Yen Cross
Yen Cross's picture

   COLA= Senior Euthanasia.

 Those evil, old peoples, that protected our freedoms, are ra(y)cist hypocrites.

 * At least someone gets to enjoy the "IOU lockbox" of entitlements.

Fri, 10/23/2015 - 20:43 | 6704935 jpc578
jpc578's picture

Soda Stream? Seriously? How many people use this product? How many more people buy soda traditionally in the form of bottles or cans of Coke, Pepsi or some other competitor as opposed to Soda Stream?

Also, inflation is not measured through one product. The CPI represents a large market basket of goods and services. Some items go up. Some go down. Others remain unchanged. On top of that the BLS has to figure out how to accurately weight each item - a task that is very difficult. Although the BLS has many faults (especially in their unemployment data), their measurement of inflation isn't too bad based on my experience of buying products. As a point of fact, my business is facing competition that is forcing me to lower my prices.

Fri, 10/23/2015 - 23:29 | 6705419 IndyPat
IndyPat's picture

Hey fuckface....

Go out and buy a stick of Old Spice or Rightguard deodorant.

Take it home and cut it in half right down the middle.

Surprise brah! You got got.

On second thought, forget I said anything and go find a dude that works at BLS and suck him off.

Sat, 10/24/2015 - 00:13 | 6705490 ucde
ucde's picture

Inflation refers to a rise in the prices of goods across the entire economy, not an increase in the price of an individual product. 

I mean if Sony doubles the price of its HD televisions, are you going to tell me we have 100% inflation? That's nuts. 

Anecdotal examples are very misleading in determining things like this. I'm kind of amazed this article was presented here.

Sat, 10/24/2015 - 00:57 | 6705549 Wild E Coyote
Wild E Coyote's picture

Nobody is saying one example is enough to change statistics.
ZH was kind enough to point out a potential method of hiding inflation. And you come to say what?
That ZH should replace BLS and do the research themselves.?
Who is being paid good Government money to keep statistics anyway?
You are the kind of idiots that allow Government agencies to perform like idiots too.

Sat, 10/24/2015 - 01:57 | 6705618 Vendetta
Vendetta's picture

yeah but I did notice the manufacturers have been so kind as to fill a gallon jug of anti-freeze with half of it pure water and kept the price the same

Fri, 10/23/2015 - 20:52 | 6704966 chart_gazer
chart_gazer's picture

Shrink flation, every pre packaged item in the store has been through this.  The best part is yet to come. When the SHTF, job loses in mass, and people stop spending you'll start seeing packaging "Now 20% more" to make you think they are giving you more for your money.  Truth is you're still ripped off.  US corporate scum. 

Fri, 10/23/2015 - 20:52 | 6704967 Questan1913
Questan1913's picture

Ho hum......just another laugh fest here,in reaction to the good news.,...we are being plundered day and night....our quality of life is being forcefully depressed...we will be running faster on the treadmill to keep from losing even more ground econimcally.  We are heading into third world life stlyles and prospects.  Yep, this is just hilarious.

Fri, 10/23/2015 - 23:31 | 6705422 IndyPat
IndyPat's picture

Chickens in the street.....

Fri, 10/23/2015 - 20:53 | 6704974 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

Bought paper towels lately? The rolls keep getting smaller and smaller! Now a 12-roll pack is equivalent to an 8-roll pack of two years ago.

Fri, 10/23/2015 - 20:59 | 6704995 world_debt_slave
world_debt_slave's picture

Honey I shrunk the CPI

Fri, 10/23/2015 - 20:59 | 6704996 yogibear
yogibear's picture

All Sorts of items where the size or number of items where reduced.

Seems likethe Fed and government where working with the corporations to work it out this way. That's giving them too much credit.

Sure the fed knows it. There just hoping the masses don't protest or boycott.

Forty years ago people would have boycotted the products.

Both the Fed and the government don't like when they lose control.

Fri, 10/23/2015 - 21:00 | 6705002 Ckierst1
Ckierst1's picture

Thomas Jefferson, as brilliant as he was, was way too trusting of government bureaucrats reporting honestly, without political bias, accuracy and with no agenda.   Government simply can't be trusted to inform anyone without propaganda in one form or another.  Because of their access to deep public pockets they will buy science that supports an agenda and freeze out dissenting scientific views.

Fri, 10/23/2015 - 21:03 | 6705013 fowlerja
fowlerja's picture

Oh my gosh, did someone just find some skeletons in the BLS closet ...silly me...the Bureau of Labor Shitistics was just getting ready for Halloween.

Fri, 10/23/2015 - 21:06 | 6705025 AdolfSchicklgruber
AdolfSchicklgruber's picture

Anybody else notice Gatorade shrank its 32 oz bottle to a 28 oz bottle for the same price?

Fri, 10/23/2015 - 21:08 | 6705031 ThrowAwayYourTV
ThrowAwayYourTV's picture

That shit will rot your teeth faster than anything on the planet

Sat, 10/24/2015 - 02:01 | 6705622 Vendetta
Vendetta's picture

perhaps true but I had to stop drinking the shit which was given free by the employer because of its sodium content... had to resort to water which actually quenched my thirst without the ill effects..... felt a lot better within days!

Fri, 10/23/2015 - 21:14 | 6705047 mademesmile
mademesmile's picture

Check this out. We just had our first homegrown pig processed. I cooked up the middle chops to celebrate. I was so used to cooking meat that was sneakily 20% sodium injected, the first batch were way over cooked. Tears were shed. I salted and tasted. Nothing! Salted two more times just to get a normal salt level. The moral of this story is I am so adept at cooking trash meat I almost ruined real meat. I'd bet most grandmas would not recognize the meat that is sold prepackaged these days. And the reason it's trash is because they are too price conscious to sell decent food anymore. Well I'm opting out with quail, rabbit, chickens and pork. Not going back!

Sat, 10/24/2015 - 09:24 | 6706011 New_Meat
New_Meat's picture

You are EVIL!

Sat, 10/24/2015 - 12:36 | 6706458 mademesmile
mademesmile's picture

And you are DELICIOUS!

Sat, 10/24/2015 - 16:55 | 6707089 Hulk
Hulk's picture

I betcha he doesnt taste good at all...

But seriously, real food has to be cooked much different thatn store bought.

Anyone who has cooked real grass fed beef can atest to this...

Fri, 10/23/2015 - 21:18 | 6705053 Ajax_USB_Port_R...
Ajax_USB_Port_Repair_Service_'s picture

And ac outlets! Contractor told me these outlets were the only ones that meet the code. Did the whole house with them. THEN I found out there are way cheaper outlets at them there home stores. AND those cheap outlets meet code also! I guess the contractor thought I ran a hedge fund. http://www.revolutionpower.com/furutech-gtx-d-g-pure-copper-and-gold-rec...

 

Fri, 10/23/2015 - 21:29 | 6705098 monad
monad's picture

You're all children. Distracted. Moochie is by far the worst first whore, ever. She'd love to burn you at the stake and rape then crucify your women. 

Pussies. Look. Hang 'em high.

Sat, 10/24/2015 - 05:53 | 6705786 Lucky Leprachaun
Lucky Leprachaun's picture

I can'understand why the First Ho' is so full of anger and resentment against YT. Had she been born white she'd be flipping burgers right now.

Sat, 10/24/2015 - 09:25 | 6706012 New_Meat
New_Meat's picture

your question answers itself.

Fri, 10/23/2015 - 21:43 | 6705134 Baby Eating Dingo22
Baby Eating Dingo22's picture

Sheds are now called "tiny houses" and selling for $49,000

Sat, 10/24/2015 - 07:35 | 6705875 silverer
silverer's picture

Except in San Francisco, where they sell for much, much more.

Fri, 10/23/2015 - 21:45 | 6705141 Yen Cross
Yen Cross's picture

 Most people don't even realize that Social Security was sold out 30 years ago.

 It has NOTHING to do with longevitylifespan of the payees,[a person to whom money is paid or is to be paid, especially the person to whom a check is made payable.]

  

Fri, 10/23/2015 - 21:54 | 6705174 Lostinfortwalton
Lostinfortwalton's picture

On the plus side JC Penny seems to have some good deals, seriously. Being retired, I am into shorts, tee shirts, and cargo pants. There stuff is priced well. Their fall fleece and cotton sweaters are also reasonably priced. The stuff is not made in China and wears like iron. Seems they are always sending a $10 off $10 purchase coupon to the house. They may be the last store for the middle class. Hope they survive.

Fri, 10/23/2015 - 22:02 | 6705194 Hohum
Hohum's picture

This is necessary to protect us from the reality that humans don't create wealth anymore.  The finite earth is making life so difficult for us.  Now you may think a change in the political system will re-ignite our cornucopian world.  We'll see.

Fri, 10/23/2015 - 22:02 | 6705197 hannah
hannah's picture

this article is stuuupid. you cant qe unlimited money without price inflation. same old saying the shit you cant live without will go up and the shit you dont need will go down.....just read freaking history.

Fri, 10/23/2015 - 22:18 | 6705250 Yen Cross
Yen Cross's picture

   I think hannah gets it Tyler. :-D

 When in history, has lack of demand driven CAPeX?

 

Fri, 10/23/2015 - 22:14 | 6705237 Seasmoke
Seasmoke's picture
SodaStream/Headquarters
Lod, Israel
Fri, 10/23/2015 - 22:21 | 6705255 Yen Cross
Yen Cross's picture

 I wonder who VC'ed the start-up, and is the Underwriter?

Fri, 10/23/2015 - 23:53 | 6705463 Platinum
Platinum's picture

The list likely reads like the guest list to a Bar Mitzvah.

Fri, 10/23/2015 - 23:09 | 6705375 Tzanchan
Tzanchan's picture

Drink water, stuff tastes like scheiss anyway. what u think arab muslims will not treat you as dhimmi if u blame joos for everything. Their motto, first the saturday people, then the sunday people. allahu akbar, pboh, the prophet mo....

Fri, 10/23/2015 - 22:49 | 6705336 TalkToLind
TalkToLind's picture

SodaStream?  Inflation?.......................................................(wait for it).................................................DAS RAYCISS!!!

Fri, 10/23/2015 - 23:12 | 6705386 adr
adr's picture

Well that's your fault for buying SodaScam. Financed with Ziobucks to go public and reward the Zios with more Ziobucks.

Yes they did the change to somehow increase profit to hopefully beat earnings expectations and send SODA soaring 20% in seconds.

It could be worse. You could have bought Keurig Cold. $1.25 per 8oz serving of soda passed through a toxic chemical laden rock of some kind that releases CO2 when it comes in contact with water.

I love the tiny little warning on the package. DO NOT EAT OR DRINK FROM RUPTURED POD. MAY CAUSE SEVERE BURNS TO MOUTH.

How people drove GMCR to the heights they did is beyond me. Oh yeah, people are fucking stupid.

Fri, 10/23/2015 - 23:19 | 6705395 Tigg47
Tigg47's picture

"Downsizing" is happening all over the planet. Gotta hide inflation somehow. We are being screwed front, left and center.

Fri, 10/23/2015 - 23:19 | 6705396 FiatFapper
FiatFapper's picture

I love the smell of margin compression in the morning.

Fri, 10/23/2015 - 23:41 | 6705435 IndyPat
IndyPat's picture

Smells like.......Alpo.

In the new 'fun size" can.

Sat, 10/24/2015 - 00:31 | 6705513 Threnody
Threnody's picture

Inflation used to mean money supply expansion yielding a drop in purchasing power.   We don't really have a term specifically for this any longer.   Now any price increase or price per unit increase is termed inflation.    But prices go up and down for natural supply / demand reasons all the time.    Fabricating 3 trillion or so since 2007 and the fractional reserve expansion on top of that IS inflation.   The loss of purchasing power will come, even if badly hidden by silly ploys such as listed above, or by tinkering witih oil prices, or by madly fabricating gold certificates to hide that indicator, or if much of the initial new fiat money was initially exported.  It's coming home to roost.... and poop on us.   

Sat, 10/24/2015 - 00:43 | 6705525 quasi_verbatim
quasi_verbatim's picture

In an Age of shrink-ray zombieism and mendacity.gov statistics tolling the bell on hyperinflation is a revolutionary act.

Sat, 10/24/2015 - 00:59 | 6705551 Kprime
Kprime's picture

How much further can this go on??  How fucking stupid does Folgers think we are??  I go in to buy what used to be a large can of coffee.  I can no longer remember how much it use to weight.  Now I find this fucking plastic tub of coffee, the new one, sitting next to the old one.  The new one is one inch shorter and weights 24 oz.  The old one weighs 32 oz.  They are both priced the same.  The old price was 8.99, the new price is 8.99.  REALLY,  FUCK YOU FOLGERS.  FUCK YOU CENTRAL BANKS. And fuck all the bullshit government and media for your fucking bullshit lies.  If you don't think the America public sees this and is on a slow boil you are as stupid, well, as stupid as you are.

Sat, 10/24/2015 - 06:33 | 6705818 SmallerGovNow2
SmallerGovNow2's picture

back in the day the small was a pound 16 oz and the large was three pounds 32 oz.  have not been that way for a long time.  the large in my pantry are 29 oz.  guess i get to look forward to losing another five ounces according to your findings...

Sat, 10/24/2015 - 09:30 | 6706020 New_Meat
New_Meat's picture

 

"... and the large was three pounds 32 oz."

See, you were being screwed back then, too.

Sat, 10/24/2015 - 10:22 | 6706123 Rock On Roger
Rock On Roger's picture

'Tis why most sheeple don't notice

They can't do the fucking arithmetic

 

Three pounds is forty eight ounces.

 

Sat, 10/24/2015 - 01:43 | 6705605 Karaio
Karaio's picture

People!

I will not give any more "+" or "-" to anyone.

Just I write, fuck what you think.

hehe.

Sat, 10/24/2015 - 01:52 | 6705607 NoYouAreAnAsshole
NoYouAreAnAsshole's picture

The idea that there are a bunch of dumbfucks at the BLS is just ludicrous.  Yeah, they just didn't notice that the product size was nearly cut in half, but the price remained the same.  Sure, they did . . .

More likely is that the BLS is in on it.  What is "it?"  It is getting twice the tax receipts from the same product.  Think about it.  In order to get the same amount of product, in the example used, you have to buy 2 X $5.99 = $11.98.  So, if your state sales tax rate is 8% before you were paying $.48.  If you have to buy two to get the same amount as the old product given the same tax rate, you are paying $.96! 

So, the BLS is covertly helping the states fill their tax coffers.

Then, there is the gigantic national debt that will go to nearly $20 trillion dollars by the end of the 2016 fiscal year.  Right now, with the average interest rate charge to the government is about 2.5%.  So, it costs all of us $20 trillion x .025 = or about $500 billion a year just to pay the interest on the debt.  Now, if we take into consideration that the 10 year treasury bill has averaged 4.99% over the last 100 years, the tax bill rises to $980 billion or nearly a $1 trillion dollars.  That payment of just the interest on the debt would become the largest single item in the federal budget! 

If there is no inflation there is no reason to raise interest rates to "fight" inflation.  And, then there is no reason to charge ourselves more to pay the interest on our debt.

And the BLS knows "it!" 

Sat, 10/24/2015 - 04:51 | 6705756 GreatUncle
GreatUncle's picture

Disagree on the tax receipts.

Looks like consumers are buying less because they CANNOT AFFORD MORE or even more likey spending the same just ending up with less.

Tax receipts the same or possibly even down.

The national debt needs more taxes now we all know the rich use loopholes to aggresively avoid taxation, the poor sefs still earning the same are not paying more taxes so the national debt starts to accelerate away into BOJ land.

TWO CHOICES - consider the economic pot fixed for 1 instant.

Take more from the rich to keep the national debt under control. (This ain't happening for sure)

Give the poor more income to raise tax. (This ain't happening - as outlined it will be the same)

The only path ever chosen was raise income, tax more, you are nevder better off it became a pointless action even minimum wage all to justify the national debt. Minimum wage increase is forced banker inflation so everything will go up as the economy resets itself to this bigger number level.

BOJ here we come for all western nations because we do not seem to be able to deal with those two points and the one and only issue here is THE GAP BETWEEN RICH AND POOR, what rich or poor is does not matter. The disparity and growing that QE genenrated just made it a whole lot worse and the helicopter drop of money will be the same if the rich siphon it all up BEFORE GOVERNMENT GETS TO TAKE IT IN TAXES.

In all scenarios the poor get fuck all.

Sat, 10/24/2015 - 01:47 | 6705609 Karaio
Karaio's picture

Good F-35.

hehe.

Sat, 10/24/2015 - 02:04 | 6705627 Vendetta
Vendetta's picture

$19 trillion dollar national debt, 0% interest rate and there is inflation ... no way! /snark

Sat, 10/24/2015 - 02:09 | 6705633 Allen_H
Allen_H's picture

 I have been watching this for quite a while, in the EssU it is the same thing. Prices constantly going up and quantity going down. Hidden inflation, it's the death of the terrorist axis of evil.

I see they show Soda Stream, it is a jew run business, do not buy Soda stream, they use it to finance their death. Do not buy products with barcodes begining with 7219 or 7922, these are terrorist izraHELL codes.

Sat, 10/24/2015 - 02:42 | 6705657 Yen Cross
Yen Cross's picture

  Team Spirit/

 

Sat, 10/24/2015 - 03:11 | 6705680 messystateofaffairs
messystateofaffairs's picture

BDS SodaStream.

Sat, 10/24/2015 - 03:22 | 6705687 MiTasol
MiTasol's picture

I may be imagining it but is this stuff made in the Occupied Territories?

Sat, 10/24/2015 - 04:25 | 6705733 GoatHollow
GoatHollow's picture

Yes, on land taken by military gunpoint from it's rightful owners.

Sat, 10/24/2015 - 04:24 | 6705730 GoatHollow
GoatHollow's picture

Had to weigh in, not on "Shrinkflation" but on the author's choice of Soda Stream as an example.  Soda Stream, is an Israeli corporation, manufactured in a sprawling facility where the Israeli Government used the military at gun point to throw West bank people out of their homes and then the Netanyahu administration gave the land to it's corporate buddies.  I cannot support any government taking from it's poor citizens (Occupied or not), and using military force to enhance profits of it's corporate elite.  I therefore will NEVER allow a Sodastream product to pass my lips.

Sat, 10/24/2015 - 04:37 | 6705744 GreatUncle
GreatUncle's picture

Remove all patent and copyright law.

http://patents.justia.com/assignee/sodastream-limited

At that point no legal protection enabling the justification of this kind of behaviour WITHOUT CAPITALIST FREE MARKET COMPETITION to combat the profiteering.

Everybody knows, the government knows it, assuming a few (getting fewer too by the look of it) drink this, but powerless to act because you need to find ways to INCREASE THE PROFIT TO SUPPORT THE ARTIFICIALLY GENENRATED STOCK MARKET.

Although it does look kind of crap for them financially if you look at the following link.

http://www.marketwatch.com/investing/stock/soda

Looks like the punters may be not buying enough since the depression started so time for plan B, trick the consumer to try and maintain profits. Looks ominous for the company in the long run.

Sat, 10/24/2015 - 04:50 | 6705755 Panic Mode
Panic Mode's picture

Only deflation happen at the moment is your wages and fuel cost (slightly).

Sat, 10/24/2015 - 05:04 | 6705759 falak pema
falak pema's picture

Well what you can do to the value of money you can do to the value of goods or to the value of Stawks !

Money honey in print to infinity, stawk beanstalk to the sky without limits, smaller hedonic bangs for your buck; call it what you like.

I'm sure Lady Lagarde, Super Mario and Janet Yelling will bless it as God's truth!

I call it Gallimaufrial hodge podge! The stuff that legendry lies are made of !

Sat, 10/24/2015 - 05:18 | 6705766 trader1
trader1's picture

if only DSK got the promotion...

Sat, 10/24/2015 - 05:54 | 6705787 smacker
smacker's picture

As the article rightly points out, this is an old trick but it's becoming ever more widely used.

As a fully-blown corporatist economy, Brazil is way ahead with this giant con trick. I pay as much here for a liter of orange squash (50%-60% juice topped up with water) as I do for 100% pure orange juice in London. 100% orange juice in Brazil costs an arm and a leg, despite that the country grows millions of oranges.

Same thing with a vast range of other products, food and household items.

Sat, 10/24/2015 - 07:11 | 6705843 Dickweed Wang
Dickweed Wang's picture

100% orange juice in Brazil costs an arm and a leg, despite that the country grows millions of oranges.

 

This doesn't make any sense at all.  When i lived in San Jose, CA we had a good sized orange tree in our yard that seemed to have oranges on it more often than it didn't.  When we wanted juice we would grab some oranges and squeeze them . . . . I can't remember ever buying OJ in the supermarket then.  Why aren't people in Brazil doing the same thing?  There are probably orange trees everywhere down there . . . .

Sat, 10/24/2015 - 07:32 | 6705871 smacker
smacker's picture

It's true you can buy fresh oranges here and squeeze them but like everywhere else, people want the easy solution: buy OJ pre-packaged in a supermarket. Maybe they don't notice that it's not 100% pure OJ but watered down and costs typically R$6-7 a liter (that's about UKP1.20 or USD1.80). Back in the UK I'd call it 'orange squash' because it has suger added. I buy fresh 100% OJ here but it costs me R$12/liter.

The whole thing is a rip off but it matches so many consumer rip-offs in Brazil due to corporatism, protectionism and lack of competition.

Sat, 10/24/2015 - 06:03 | 6705790 JDFX
JDFX's picture

In UK I notice cheese , blocks of cheese being reduced to 350 grams, from 500, 400  grams. 

 

I expect we'll see a big drive for ' eat well , eat less ',  health campaigns these coming years, as global food production shrinks from its current circa 38 days world food supply. 

 

As targets to meet food demands for 2050 require a *69% increase of global food calories  (*world resources institute) , expect your daily calorific intake to be recommended reduced by 30-40% , under the advice that it's better for you. Hence ' eat well, eat less ' campaigns will be coming down the pipe.

 

 

 

Sat, 10/24/2015 - 07:04 | 6705842 Moe Howard
Moe Howard's picture

Anybody notice that it costs more for carbonated beverages at the grocery WITHOUT sugar or sweeteners? In addition, brands like Walmart "Clear" have artificial sweeteners? You have to read the ingredients to find out. Kroger brand pulls the same crap, it does not say "sweetened" on the label, they do have an unsweetened version but basically you have to read the ingredients to find it. Canada Dry makes flavored sparkling seltzer water without sweeteners, good luck finding some. It disappeared in Walmart months ago. Best I have seen in Kroger is two twelve packs on the shelves at one time, normally there is none. They keep giving me coupons for it, but they don't keep the product in stock. I have written to Kroger, Walmart, and Canada Dry about this, answer, they don't know.

It seems they would rather sell sugar water than flavored water, even though the cost to produce has to be less. Weird.

 

Walmart carries three types of gallon water; distilled, spring, and drinking. Drinking water is the only one that is treated with reverse osmosis. Over the last few months there has been less and less drinking water. For two trips over a month, there was none. Last time I went I asked an employee, he found an old case in the back. He had no answer why the shortage.

Sat, 10/24/2015 - 07:32 | 6705870 silverer
silverer's picture

Of course, you can always drink distilled water.  It's total lack of flavor due to the absence of any trace dissolved salts makes it "taste" strange.  Mainly because there's nothing to taste.  Most people have never had distilled water to drink.  All it is is water.  Nothing else.  Some people have said "it's not good for you".  I don't believe that for a second, because you get all those dissolved salts and minerals in your food anyway, and the amounts in average drinking water is small to begin with.  Not only that, distilled water is an excellent cleaner, as it doesn't leave spots or streaks on a surface after it dries off.

Sat, 10/24/2015 - 11:02 | 6706228 Moe Howard
Moe Howard's picture

Good points. My wife believes the "hype" about distilled water. Maybe I'll switch and keep mum. Thanks for making me think.

Sat, 10/24/2015 - 20:42 | 6707697 mkkby
mkkby's picture

It's not good to drink to much distilled water.  Easy to fix -- put a few drops of lemon juice or tea in your glass.  Fresh clean taste, much better than over priced fructose water that will give you diabetes and cancer.

Sat, 10/24/2015 - 07:28 | 6705867 justsayin2u
justsayin2u's picture

CPI accounts for changes "in the quality or quantity (for example, eggs sold in packages of ten when they previously were sold by the dozen) of the good or service since the last time prices were collected".  So this article is not correct.

Sat, 10/24/2015 - 11:45 | 6706320 I Write Code
I Write Code's picture

On ZH everything is either painfully true or else, y'know, not.

Sat, 10/24/2015 - 07:38 | 6705879 deerhunter
deerhunter's picture

got a quote for a fuel/oxygen sensor replacement on an 06 Toyota Corolla.  260 for the part,  100 dollars an hour to "troubleshoot."   Really?  360 dollars.  For a car part to be replaced?  No inflation?  How long do you work for 360 dollars?  It is really no ones buisness.  Since when did owning a ten year old vehicle become a luxury?  It isn't for me as I drive an average of 400 miles a week running sales calls.  My options at this point since no one owns the test meters or schematics to test and fix the car myself are simply A,  not fix it.  B.  Suck it up and pay the man Shirley.  

No inflation?  Good weekend to all.  I will be sitting in a treestand,  with my bow this afternoon.  I have a monster buck on trail cam 2 to 4 AM  most days the last few weeks.  As chasing the girls gets hotter and hotter this next couple weeks I hope to have him sashay by.  Time to restock my "inflation proof freezer."  

Always keep one eye on your bobber,  good weekend to all.

Sat, 10/24/2015 - 09:31 | 6706022 Falconsixone
Falconsixone's picture

That's why instead of points, plugs and wires you've got 50 sensors, relays and hose with the same mpg as you got in 1960. And you have to pull the tank to change a fuel pump. Electric instead of mechanical to save you hp lol. One of the things they dont go commie on where everything was interchangeable for 40 yrs and a four year old could work on it. 100 to troubleshoot because one code could be 40 different things and they dont have a clue what there looking at but will charge you for every part as if they do.

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