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Annual Inflation Hits 4%

Tyler Durden's picture


There is the CPI... and then there is the MIT's billion price project which, as the name implies, tracks the prices of a billion products in real time. And according to the latter, annual inflation has hit a multi year high of about 4%. Perhaps someone can advise the talented Mr Evans that the 3% inflation he would so love to achieve... has in fact been eclipsed. At least, according to the real world. So take 4% inflation, add $2.5 trillion in "much more" easing, and what you get is only an economic Ph.D.'s guess. Alas, we are unqualified to have an opinion on the matter.


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Tue, 08/30/2011 - 23:09 | 1617761 Spitzer
Spitzer's picture

Nixon imposed price controls at 4% inflation.

Interest rates would have to be 7% just to be 3% ahead

Tue, 08/30/2011 - 23:51 | 1617887 TruthInSunshine
TruthInSunshine's picture

People are stirring.

Ben Bernanke Confronted by WeAreChange - YouTube


Luke Rudkowski finally is able to get in the face of the master behind all this economy tyranny Ben Bernanke. The short exchange proves how elites are scared to answer their ties to the treason bilderberg group. If you never heard of the bilderberg group please do your own homework and research and not just take our word for it.

Wed, 08/31/2011 - 00:32 | 1617956 cynicalskeptic
cynicalskeptic's picture

'stirring?!'......they're STARVING elsewhere in the world

here  they're debating between watching  'Dancing With The Stars' and the new '2 1/2 Men with Ashton what's his name' next Monday

Wed, 08/31/2011 - 00:34 | 1617962 TruthInSunshine
TruthInSunshine's picture

I realize that.

This was more of a response to someone in another thread who said that The Bernank was inaccessible.

Wed, 08/31/2011 - 03:13 | 1618128 macholatte
macholatte's picture

What's encouraging is that the author of that piece is apparently under 25, maybe a college kid, and he's not just bitching about not getting free tuition anymore.

Wed, 08/31/2011 - 05:25 | 1618184 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Ha! Tyler doesn't have a PhD.


I've got three of 'em! Check it out:

Wed, 08/31/2011 - 07:19 | 1618248 See in the pink
See in the pink's picture

I see it still stands for "Piled higher & Deeper" :p

Wed, 08/31/2011 - 07:49 | 1618300 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Yes, Ph D, I have one. It means poor horny and desperate.

Wed, 08/31/2011 - 02:06 | 1618092 PaperBugsBurn
PaperBugsBurn's picture

look at Rockefuker confronted this year in Chile


the guy goes wild... tells Rockefuker he shoudl kill him right there


i? amazed that pos goes around without a dozen bodyguards and arrives at a civilian airport...  WTF el cheapo

Wed, 08/31/2011 - 06:28 | 1618210 Confused
Confused's picture

While I agree, its strange that he travels the way he does, I'm sure 99.99% of the population has no idea who he is (or what he looks like). 


When they hear his name, they just think of Jay-Z and his record label. 

Wed, 08/31/2011 - 00:03 | 1617908 Cursive
Cursive's picture


The cost of money should be much higher, instead we get ZIRP until 2013.  There will be blood in the grocery aisles.

Wed, 08/31/2011 - 00:41 | 1617980 Spitzer
Spitzer's picture

That's right.

This is really a sad situation. The only positive is that after the bloodshed, Keynes will be put to rest for ever.

Wed, 08/31/2011 - 02:10 | 1618093 Taku
Taku's picture

I don't see it beneath The Bernak & Group to oh, drop 50% of what most people buy from the CPI, and then, voila! Inflation falls, Bernank-style.

Wed, 08/31/2011 - 05:36 | 1618190 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Dude, Soylent Green is still a steal at $2 New United States Dollars a kilo.


Remember. Tuesday is Soylent Green day. 

Wed, 08/31/2011 - 07:17 | 1618245 See in the pink
See in the pink's picture

You realize we're already halfway there? (and this is only what we know about...)

Wed, 08/31/2011 - 02:56 | 1618121 samseau
samseau's picture

Keep dreaming, pal.  Keynes will outlive America.

Wed, 08/31/2011 - 05:44 | 1618192 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

I love how Keynes has become an extension of Democrat which has become an extension of Socialism which has become an extension of Everyhting Evil In The World.


Get out of the false Left / Right paradigm.


40 years of unabashed free market "Fresh Water" capitalism under Democratic / Republican administrations destroyed the US economy and got us into this mess with no commentary what so ever.


And now 3 years of "Keynes," which ain't even Keynes, (how giving $4 trillion to the Wall Street banks that caused this crisis is "Keynsian" I'll never understand) has the blogosphere all up in a hissy?

Wed, 08/31/2011 - 07:37 | 1618279 Inspector Bird
Inspector Bird's picture

This is soooo correct.

Keynes would NEVER agree to the way his views have been bastardized.  In fact, if he were to be in the US today, he'd point out it's impossible to run a deficit that "pays for itself" as a "pump primer" simply because the debt load would undermine the effects of any stimulus.


The idea that socialists are Keynesian, or anything like that, is absurd.  Even proponents of the Austria School, such as myself, recognize that Keynes wasn't "wrong" in the sense that what he suggested wouldn't work - its effects are muted, at best - but that he was wrong because he opened the door to abuse by an elite class of individuals who lacked the training to know how to manage the system in any meaningful way, and that it would lead to the abuses we've seen.

Wed, 08/31/2011 - 00:49 | 1617992 krispkritter
krispkritter's picture

"Cleanup on aisle 6...and 7...and 9...and 13...."

Wed, 08/31/2011 - 02:02 | 1618085 boiltherich
boiltherich's picture

And don't mouth off to the meat cutters either or it will be you they are selling at $5.60 a pound.  Hamburger up 60% so far this year and going higher. 

Of course we have to pay it, we can't just starve.  But every dime of increase in food and fuel and utilities and rents is just that much less to spend in the rest of the economy, and since we are in a stagflation recession now I am betting there will be depression by year end.  QExyz and then some but every day costs go up wile the rich get richer and the poor get fucked. 

I am SOOoooo glad I got my Irish passport back in 2002.  A nice neutral island nation with an agricultural economy will come in very hand here soon. 

Wed, 08/31/2011 - 02:50 | 1618118 dolly madison
dolly madison's picture

Yeah, while I've been stocking up on goats, chickens rabbits and seeds, I've thought that it does not have to come to complete hyperinflation for this stuff to come in handy. 

Wed, 08/31/2011 - 04:26 | 1618167 blunderdog
blunderdog's picture

A more vegetarian diet among more Americans would help most folks' health, so there'll be an upside when the Medicare system falls apart.

Wed, 08/31/2011 - 07:29 | 1618270 See in the pink
See in the pink's picture

That's only true if they can avoid filling their bellies with grains and starches (diabetes, anyone??) and get plenty of raw, living phytonutrients, preferably the Southern-grown variety that doesn't cause hair loss and won't give their thyroids mutant superpowers! ;)

Wed, 08/31/2011 - 00:44 | 1617987 Big Ben
Big Ben's picture

Real short term interest rates are negative, in fact more negative than at any time in the 70s. That is just asking for trouble.

Wed, 08/31/2011 - 01:34 | 1618063 Mike2756
Mike2756's picture

They need to update the map.

Wed, 08/31/2011 - 06:18 | 1618204 Version 7
Version 7's picture


This means real inflation is going around 12%. Adjust that 7% interest rate to 15%.

Wed, 08/31/2011 - 07:16 | 1618244 tarsubil
tarsubil's picture

What they need to do is break it down by consumables you need like food, transportation, and fuel and things you don't need like plasmas, iPads, and Margaritavilles. This is still biased by deflation due to technological progress with crap we don't need.

Wed, 08/31/2011 - 07:52 | 1618305 Silver Dreamer
Silver Dreamer's picture

Exactly, I'm sure stupid shit like iPads are one of the billion prices they track.  The MIT data is just as much of a lie as the government's CPI.

Wed, 08/31/2011 - 10:03 | 1618642 Ignatius J Reilly
Ignatius J Reilly's picture

I appologize for highjacking the thread.  I have limited time today to research.


Does anyone know if housing prices are in the billion?  'Cause that makes a big difference if it is.



Wed, 08/31/2011 - 11:01 | 1618874 boiltherich
boiltherich's picture

There was a good description of the BPP when they first introduced it here at ZH.  From the MIT webpage:

The Billion Prices Project is an academic initiative that uses prices collected from hundreds of online retailers around the world on a daily basis to conduct economic research.

Our research uses high-frequency item-level data to study pricing topics in Macroeconomics. These are some of the questions we are currently working on:

  • Pricing Behavior: What drives price stickiness around the world? How much can be explained by current inflation, and inflation histories? How much by competition and industries’ structure? Are prices synchronized?
  • Daily Inflation and Asset Prices: We construct daily inflation indexes across countries and sectors and study their ability to match official statistics. We also study the links between daily inflation, asset prices, and inflation expectations.
  • Pass-Through: How much do prices adjust internally when the exchange rate, or the international price of commodities change?
  • Green Markups: What premium is paid in stores for “green” or “organic” products? Since we have data from multinational retailers, we can compute premium differences -for exactly the same items- in different places.

So, real estate is not in the mix, but I still doubt it is much of a reflection of actual consumer prices in the USA, though it does have applications for a lot of good research.  Since food, rents, utilities, and fuel are a large part of our inelastic budgets, and they are not sold by online retailers for the most part (or at all) these would appear not be getting measured at all. 

For what it is worth here is the link: and when you go to the page you will see near the bottom that there is another link to PriceStats which is a private for profit propriatary data collector of inflation/price data. 

If you want to know what inflation is doing just stay aware of the prices you pay for the things you buy.  Because you are not going to get truth from government, and anecdotes we post about prices might be interesting and fun but not particularly relevent to you.  I prefer to think of it all as a sort of personal index, income in verses prices I must pay = standard of living.  Since I am on a fixed income the income side is pretty easy, it has not changed since BushCo was in office.  The outgo part according to the CPI-W is about 2% less than it was in 2008, but since that measurement dictated my last raise I find in my real world I have lost about 30% of my standard of living.  I have only been able to keep going and stay out of bankruptcy court by ditching my mortgage in favor of cheaper rent.  But that will not last either, rent will go up by a good 15% at least when my lease is up next April. 

Wed, 08/31/2011 - 15:45 | 1620133 Ignatius J Reilly
Ignatius J Reilly's picture

 Thank you!

Tue, 08/30/2011 - 23:10 | 1617764 William Wallace
William Wallace's picture

No QE3.  They can't let inflation get away from them.  If they had to really jack up interest rates to stop inflation, it would lead to total scroomage.

Tue, 08/30/2011 - 23:15 | 1617775 Global Hunter
Global Hunter's picture

Scroomage?  Is that a scottish word?  No worries I get the jist, and I will go out on a limb and say we'll get to witness this scroomage first hand in the near future.

Tue, 08/30/2011 - 23:51 | 1617885 TapperIsTicked
TapperIsTicked's picture

Scroomage v: [Fr] sound the blade makes just prior to its abrupt stop.

Tue, 08/30/2011 - 23:56 | 1617893 Spitzer
Spitzer's picture

Inflation got away a long time ago.

Wed, 08/31/2011 - 00:23 | 1617937 rocker
rocker's picture

Anybody who believes inflation is just 4% watches too much TV. And as a act of kindness,

Needs to pay the difference over 4% on my electric bill, my perscriptions, my land taxes, my food bill and the beef.

It's the beef I got a beef with. Meats have doubled. I don't what others eat, but hamburgers and hotdogs never work for me.

Wed, 08/31/2011 - 00:37 | 1617969 cynicalskeptic
cynicalskeptic's picture

Used to live on 99 cent packages of hot dogs in college.  Now they're overe $4.  A pound of bacon is over $7.   Saw a rib roast at $52 the other day.... gagged. WTF?  

Heating oil was under $1 when we bought 17 years back.  Now?  Can't imagine the price this winter......

My house is still worth 3 times what I paid (IF I could sell it) but the taxes have gone up OVER 3 times.....  taxes are forever.  Even when you own a house you can lose it.  Local property taxes here are more than my refied fixed 5%  15 year mortgage payment.

Wed, 08/31/2011 - 03:04 | 1618125 dolly madison
dolly madison's picture

Yeah they doubled my property taxes this year.  Such a bitch.  One of the great things about where I lived had been the fairly low property taxes since the property doesn't cost much here.  It is a real struggle for us to pay it too.  It's made us feel much poorer.

I'm sure the renters voted it in, not understanding most landlords will just pass it on to them.

The food prices are a real issue for us too.

We are pretty much on a fixed income.  We have an RV park, but I have not raised rates yet on the people because I have a devotion to low prices, but I will not be able to keep it up forever probably with the way things are going.  So many of our expenses are up.

Wed, 08/31/2011 - 06:19 | 1618206 Henry Chinaski
Henry Chinaski's picture

It's enough to make you a libertarian.

Wed, 08/31/2011 - 08:08 | 1618323 Conchy Joe
Conchy Joe's picture

In our area 30-35% of our population is on welfare, living in subsidized housing or receives some other type of taxpayer funded assistance. Add in the college students and professors and you have closer to 50% of the population that will always vote for any type of property tax increase to fund whatever the need for the day here is.

My appraised (taxable) property value is back to almost what it is actually worth but the percentage I pay has increased every year.

Wed, 08/31/2011 - 08:09 | 1618324 Conchy Joe
Conchy Joe's picture


Wed, 08/31/2011 - 02:05 | 1618088 boiltherich
boiltherich's picture

William:  That boat sailed where have you been?  Just because they do not report inflation does not mean it is not out there. 

Wed, 08/31/2011 - 07:47 | 1618294 spankfish
spankfish's picture

Screw inflation... full steam ahead.  Oh, I forgot to say bitchez.

Tue, 08/30/2011 - 23:14 | 1617774 total nonsense
total nonsense's picture

I think you better speak with Roubini, he knows better. He agree's with bernanke, there is no inflation and Gold is not money, so stop with the nonsense, he is right,because he said so

Wed, 08/31/2011 - 03:35 | 1618145 Sudden Debt
Sudden Debt's picture

If Gold isn't money, it's a commodity and INFLATION on the commodity Gold IS 28% THIS YEAR!


Tue, 08/30/2011 - 23:28 | 1617784 TruthInSunshine
TruthInSunshine's picture



QE3 is DOA, bitchez. Fade Goldman. They're fading their own (free) advice and prognostications. 

QE3 is dead. Political suicide for the 'non-political' Federal Reserve. Fukushima glow-in-the-dark hot potato...


  • Fed Divisions Led to a Compromise on Interest Rates
New York Times By Published: August 30, 2011


Staff members slightly raised their forecasts for inflation for the rest of this year, indicating that the central bank might be especially unlikely to engage in another round of major asset purchases. These purchases generally raise prices, and the Fed has previously engaged in such quantitative easing in part because policy makers worried that prices might otherwise start falling.

Wed, 08/31/2011 - 00:35 | 1617964 Mactheknife
Mactheknife's picture

Even if they do something, of the options that the FOMC has left, none of them will be beneficial to the S&P in the manner that QE2 was.  Apparently, Mr. Market hasn't thought through these options as none of them will involve Brian doing his weekly POMO ES buys.

Wed, 08/31/2011 - 01:41 | 1617976 barliman
barliman's picture


I have to agree there is growing political risk. MIT's increase through the end of August would be 4% for the past 12 months but the public's feel for that same period would probably be higher.

Since that same public needs a calculator to do addition & subtraction, a simple extrapolation for the YTD trend (with no QE3 for July & August) suggests an overall relative number for the year of 6%

BUT ... add QE3 in for the final quarter ... I am going to do some fuzzy math in my head ... overall 9% for the MIT BPP for year end 12/31/11 and gold will have hit the $ 2,500/troy oz price point in December.

At which point, at least one major Democrat will announce their candidacy (cough: Hillary) for the Demcratic nomination (sotto voce: Clinton) and the odds go to 5-4 on Mr. Bernanke announcing his resignation for "health reasons".


Wed, 08/31/2011 - 02:16 | 1618097 boiltherich
boiltherich's picture

I do not need a calculator to know that my electric utilities have gone up 21% in two years in spite of the fact that the Bonneville Power Authority has such a surplus that they have had to shut down hundreds of windmills in the Columbia Gorge. 

I need no abacus to figure out that cable has gone from $119 to 140 for a neat 17.6%.

Bread has gone up 50%, beer up 25%, produce, more than double for most of it in a year.  Avocadoes alone from 50 cents to $1.89, well over 300%.  Gasoline, started to go back down from the May/June peak but is now rising again, up 12 cents this week to $3.79, but of course I have to use premium which never went below $4. 

Inflation scares the public even worse than unemployment does I think, because unemployment makes life hard for 10% of the people but inflation gets us all.  And I am pretty shocked that you hear almost no bitching about it, this round of economic nightmares seems to be getting met with such apathy that our congresswhores think they are getting away with it. 

Wed, 08/31/2011 - 03:08 | 1618127 dolly madison
dolly madison's picture

Yes, when will we see anything but apathy here? 

Wed, 08/31/2011 - 07:25 | 1618261 tarsubil
tarsubil's picture

$140 for cable? I have a tip for you. Spend $500-700 on a HTPC (build your own or buy it from Dell). Download all your movies and music for free. You'll have practically on demand entertainment for free. Better service that will pay for initial investment in 4-5 months.

Wed, 08/31/2011 - 10:16 | 1618692 MachoMan
MachoMan's picture

*sends tarsubil DMCA notice*

Wed, 08/31/2011 - 11:16 | 1618938 boiltherich
boiltherich's picture

I am not a very tech savvy person these days, used to be before retirement but tech has changed a lot faster than my ability to follow it, therefore your post was incoherent to me.  It is just easier to pay Charter the $140, and that covers high speed internet, home telephone (I do not even own a cell anymore, victim of all the zero percent inflation we have had, can't afford such luxury) and expanded basic cable which is pretty much total bullshit at least for 6 months of the year. 

This time of year I go to the video store for movies a lot, but the price for those has just not quite doubled in the last year, I could get them cheaper by using Red Box or the new Blockbuster ATM type dispensers, but I do not trust those.  What happens if there is a problem with your disc?  What if you rent your movie and when you go to return it find the machine vandalized or just gone?  Or there is a long line of people waiting?  With bricks and mortar video stores you just drop it in a slot and go. 


Tue, 08/30/2011 - 23:25 | 1617801 Caviar Emptor
Caviar Emptor's picture

Perfet! 4% "Real" consumer inflation. And plunging house prices, real incomes, consumer confidence and employment. Or stated another way: Contracting economic output, expanding input costs. 

That's biflation, baby! And yes, you can thank the decades of reckless monetary policy for the chickens coming home to roost. 

QE3 would be like pouring jet fuel on the fire. 

Tue, 08/30/2011 - 23:32 | 1617829 HoofHearted
HoofHearted's picture

Have you checked out John Williams' site? He has inflation at 11% or so. We're already there. The fire is raging, and the fuel has been added. Maybe we could throw in a bomb to make it even worse!

Tue, 08/30/2011 - 23:34 | 1617840 Caviar Emptor
Caviar Emptor's picture

I hear ya bro. Benny boy and the Feds were playing with matches when a funny thing happened. 

What's not funny is how biflation is rotting out the core of the economy. And there are no easy solutions. 

Tue, 08/30/2011 - 23:38 | 1617852 TruthInSunshine
TruthInSunshine's picture

All Federal Reserve (criminal organization, by the way; a strong case can be made under U.S. Code that the Federal Reserve is illegal as it is constituted, and has no proper authority to indirectly or directly coin money) members should have to wear Scarlet Letters wherever they travel, in the form of MIT's BPP being stapled to their foreheads and/or chests.

Wed, 08/31/2011 - 09:27 | 1618542 pods
pods's picture

There might will be a day in the future when they wear bullet holes on their forehead.  At least if the sheep ever find out the real purpose behind the FED.


Tue, 08/30/2011 - 23:41 | 1617867 navy62802
navy62802's picture

"And there are no easy solutions."

I think the time for solutions has come and gone. Thus, central banks have begun hoarding gold to hedge against an empending global monetary collapse. If an economist has to trot out some sort of 5th order partial differential equation to explain to me how his theory is correct, then we're fucked already. It's that simple.

Wed, 08/31/2011 - 00:02 | 1617906 Fish Gone Bad
Fish Gone Bad's picture

So you're saying that you want to believe your own lying eyes, rather than some pulled-out-of-the-ass partial differential equation?  Me too.

Wed, 08/31/2011 - 00:55 | 1618001 Manthong
Manthong's picture

My humble attempt at parody:


Bennie and the Feds


Hey kids, step over to the printer
Our new policy action

Is just in time for winter

We’ll pound the last few basis points left
Into the ground
You're gonna’ see how negative interest
Is made to compound

Oh,Barry and Timmy, have you seen them yet
But they're so spaced out, B-B-B-Bennie and the Feds
Oh but they're weird and they're wonderful
Oh Bennie he is really mean
He’s got Keynesian roots,  an Armani Suit

You know you’re going to need some Vaseline

B-B-B-Bennie and the Feds


Hey kids, just try to get some credit
When you are jobless
And starting to get desperate
You might survive if you sell your house off for a song
And your family is out on the street
Panhandling all day long

Oh,Barry and Timmy, have you seen them yet
But they're so spaced out, B-B-B-Bennie and the Feds
Oh but they're weird and they're wonderful
Oh Bennie he is really mean
He’s got Keynesian roots,  an Armani Suit

You know you’re going to need some Vaseline

B-B-B-Bennie and the Feds

Wed, 08/31/2011 - 00:29 | 1617948's picture

Have you checked out John Williams' site? He has inflation at 11% or so.



Local Pittsburgh TV reported the other day that a basket of 16 food items they track has gone up 8% in the past year.

Wed, 08/31/2011 - 09:12 | 1618494 Max Hunter
Max Hunter's picture

I hope they are tracking the size of packaging as well..

Wed, 08/31/2011 - 10:27 | 1618729 marsdefIAnCe
marsdefIAnCe's picture

now you're really knocking on bernank's last bag of tricks...

Tue, 08/30/2011 - 23:33 | 1617834 sun tzu
sun tzu's picture

Get your bell bottoms and hip huggers out. Stagflation is back in style thank s to Uncle Ben and Tiny Tim

Tue, 08/30/2011 - 23:40 | 1617862 Caviar Emptor
Caviar Emptor's picture

Listen. The '70s were a paradise compared with this (I keep sayin): 1978 GDP (nominal) Q1 10.9%, Q2 13.4%, Q3 13%, Q4 14.5%. There was big income growth (today we're contracting) and house prices were on the rise. Unemployment? 5.8-6%. 

Get the picture? Nothing like now. We still had an economy. 

Wed, 08/31/2011 - 00:07 | 1617914 Cursive
Cursive's picture

@Cavier Emptor

God as my witness, I would suffer through macromae a thousand times over if we could bring back anything resembling the soundness of the 1970's economy compared to now.

Wed, 08/31/2011 - 02:20 | 1618099 boiltherich
boiltherich's picture

Ditto, exploding Pintos and all. 

Wed, 08/31/2011 - 07:04 | 1618237 Incubus
Incubus's picture

I read that as, "Gold as my witness."


I've been spending way too much time on this site.

Wed, 08/31/2011 - 03:28 | 1618137 macholatte
macholatte's picture


The Jimmy Carter years were the best with Volker at the helm and interest rates at...... drum roll please..... 17%.


Tue, 08/30/2011 - 23:25 | 1617805 navy62802
navy62802's picture

MIT isn't shuffling their goods basket properly ...

Tue, 08/30/2011 - 23:34 | 1617836 sun tzu
sun tzu's picture

They forgot to replace the steak with dried dogfood

Wed, 08/31/2011 - 00:03 | 1617909 Fish Gone Bad
Fish Gone Bad's picture

I am thinking that the dried dog food was "house brand" at that.

Wed, 08/31/2011 - 02:23 | 1618101 boiltherich
boiltherich's picture

I got some house brand kitty crunchies for my cat once, he started foaming at the mouth and rolling like he was possessed.  It was horrifying and hilarious all at the same time.  Looked like he ate a few Alka Seltzer. 

Wed, 08/31/2011 - 09:37 | 1618568 pods
pods's picture

I think I lost a cat a couple years back from the Chinese melamine thing.  Alley cat, perfect health.  Had to keep him inside for a week as he beat the hell out of a neighbors cat and bam, kidney failure.


Wed, 08/31/2011 - 12:54 | 1619286 Cathartes Aura
Cathartes Aura's picture

the huge rise in dog/cat DIABETES - including daily insulin injections! - can be traced right back to what they're being fed. . . cats are carnivores, they're not grain eaters - feeding them dry kibble, particularly the cheaper versions which include GMO corn/grains, means they're getting almost nothing of nutritional value in their food.

most people don't realise that as human food has been degraded over time by corporate fud-stuff, animal foods are hugely affected, and pets are now on "insurance plans" for their medical visits too - it's sickening, literally.

(not meant to be an attack here, feeding feral/abandoned cats is a kindness - it's just that it's getting harder to be caring/generous, sadly)

Wed, 08/31/2011 - 07:18 | 1618246 reading
reading's picture

There supposed to take out everything that goes up in price -- who cares if the tracking basket is empty, right?  I mean really it's not about tracking inflation its about making everything look stable.  Obviously no one at the damn fed takes one trip to any grocery store or actually has to buy anything.  

Wed, 08/31/2011 - 10:37 | 1618759 unnamed enemy
unnamed enemy's picture

i am sure they buy plenty of stuff, those guys print their own money, why would they care about prices?

you just have to wait untill it trickles down to you.

Tue, 08/30/2011 - 23:28 | 1617814 chump666
chump666's picture

Yeah we may not see QE3 in it's obvious form, should knock markets down now.

Tue, 08/30/2011 - 23:29 | 1617815 JPM Hater001
JPM Hater001's picture

Nothing to see here people.  Billion points of light shining on the obvious.  What, you never seen 4%?  Move along.


I said move along sir.  Do not make me repeat my self...a billion times.

Tue, 08/30/2011 - 23:30 | 1617819 HoofHearted
HoofHearted's picture

I do happen to have a that PhD and can have an opinion...and I'm with Tyler. Bernanke is a dumb ass...and his beard isn't all that nice either. No I didn't buy the PhD online, but you might as well if other doctorates lead to what we get at the Fed.

Favorite conference last year, "The Federal Reserve was a bad idea." Really cool speakers. And a spot-on premise.

Tue, 08/30/2011 - 23:32 | 1617820 rcintc
rcintc's picture


Wed, 08/31/2011 - 07:09 | 1618240 Incubus
Incubus's picture

eh, doeflation was better.

Tue, 08/30/2011 - 23:30 | 1617821 tmosley
tmosley's picture

Here I would have thought it was quite a bit higher than that, given my own living expense profile.

I must be living richer.  Bullish!

Tue, 08/30/2011 - 23:31 | 1617824 pan
pan's picture

Call it what you want.  Bernanke pledged near zero interest rates through 2013.  That means buying up short term government bonds with the thought of expanding it to long term bonds.  It's happening now.  Gold and silver bitchez!

Tue, 08/30/2011 - 23:31 | 1617828 disabledvet
disabledvet's picture

So how does the 30 year in price and drop in yield today then? A full two points today alone. With gold soaring. And equities up. All equities no less. Were there any stocks down today? Anywho I see food prices collapsing...where food is made of course. Back to a buck for a dozen eggs, tomatos for 25 cents, etc...etc...i also find it odd that the housing report is done year over year instead of one month to the next "to take out seasonal differences." really? what does seasonality have to do with housing in Southern California, Nevada or Arizona? And with 40 million plus shares of Lionsgate being sold outright by Carl Icahn--how scary is that?

Tue, 08/30/2011 - 23:32 | 1617831 Caviar Emptor
Caviar Emptor's picture

They're planning a big fiscal stimulus package. That's what we'll get. 

Tue, 08/30/2011 - 23:36 | 1617844 sun tzu
sun tzu's picture

Good luck getting that through the house

Tue, 08/30/2011 - 23:41 | 1617866 Caviar Emptor
Caviar Emptor's picture

It will. Don't matter what they say, watch what they do

Tue, 08/30/2011 - 23:32 | 1617832 monmick
monmick's picture

What is the standard deviation around the the CPI number? Is that statistic even calculated, and published? My guess is that it is quite high; as high as it"s ever been in fact. We are living in a truly bipolar world where there is BOTH significant inflation AND significant deflation. The worst of both worlds, if you will. That has never happened in the past, at least not that I'm aware of...

Tue, 08/30/2011 - 23:38 | 1617853 sun tzu
sun tzu's picture

Stagflation in the 1970's. However, that was due to the Arab oil embargo. This is due to QE flood of fiat into the system

Tue, 08/30/2011 - 23:44 | 1617872 monmick
monmick's picture

Not much deflation during the 1970s stagflation, other than real estate prices in some specific markets...

Wed, 08/31/2011 - 00:14 | 1617927 myne
myne's picture

Odd isn't it.

NEW production is rising.

OLD production and labour is falling.

Tue, 08/30/2011 - 23:36 | 1617847 dumpster
dumpster's picture

what has a 4% inflation number got to do with any thing ,


inflation is probably closer to 10% 

QE3.4.5 coming our way ,

even now the spigits are wide open  0% interest .  print or die baby .


banks have brown bags open , trillions of fiats going to member banks in europe

read the statements of the fed .they  have no other  option, and will do it in the cover of darkness ,, 

that or we die sooner than later

Wed, 08/31/2011 - 00:21 | 1617934 chump666
chump666's picture

Because the backlash against the FED is growing.  They do QE3 in an obvious form, they are going get smacked down.  Watch for a slide of hand, something else.  Point is, inflation is being sent to Asia, and their economies are crunching.  Sth Korea growth is slowing hard and we know China is panicking.

Markets are rallying on vapor rallies...That will end now, only a major 500+point loss on the Dow will prompt a FED response.


Wed, 08/31/2011 - 00:52 | 1617999 chump666
chump666's picture

thanks.  Sleight of hand, rather than Slide of hand.  Ah y'know what i mean.  I outta here. Back in 10hrs.  Market sell off due.

Wed, 08/31/2011 - 01:16 | 1618033's picture

You're welcome.

Tue, 08/30/2011 - 23:40 | 1617860 dumpster
dumpster's picture

the debt ceiling has need of being raised again in a month ...

what new war will get the  ramp  going again .

Tue, 08/30/2011 - 23:42 | 1617868 G. Marx
G. Marx's picture

Hello Mish Shedlock! No doubt he'll say this proves his deflationary theory. Which is dependant upon his specific definition of what constitutes deflation.

Tue, 08/30/2011 - 23:59 | 1617900 Spitzer
Spitzer's picture

Mish shedlocks funds are like down 20%. What a fucking tool.

Wed, 08/31/2011 - 06:26 | 1618208 G. Marx
G. Marx's picture

Maybe Peter Schiff can pen an article telling everyone about Mish's under-performance and then ever-so-unsubtly hit Mish's clients up to use Pete's firm? Oh wait, even though annoying at times, Schiff's not that classless.

Tue, 08/30/2011 - 23:56 | 1617894 zorba THE GREEK
zorba THE GREEK's picture

I find it difficult to believe there are a billion products tracked by MIT. The logistics of tracking a billion products would

be prohibitive. First off, a billion products would have to include every product traded in every remote corner of the 

earth for barter or currency, some of which fluctuate in value daily. MIT or any other entity on earth does not have

the capacity to collect price information on a billion products sold in every part of the world and compare it to last years data

and adjust accordingly for every currency fluctuation in real time and come up with a reliable figure.

Is the data weighted per actual product use in the U.S?  Does the number include housing. Are the prices they compare

confirmed to be updated?  Are they using retail list prices, which are often highly discounted?  Real inflation can only be

determined by the price increase of things people buy weighted for the amount spent on each item. 


Wed, 08/31/2011 - 00:01 | 1617904 TruthInSunshine
TruthInSunshine's picture

I don't think the "billion" part is literal, but I admit I don't know for sure.

Wed, 08/31/2011 - 00:59 | 1618006 static
static's picture

The Billion Prices Project is an academic initiative that uses prices collected from hundreds of online retailers around the world on a daily basis to conduct economic research.

This page shows our most recent research leveraging high-frequency price data, as well as the US daily inflation index (updated monthly on this page).

Wed, 08/31/2011 - 01:12 | 1618027 object_orient
object_orient's picture

how do you guys deal with the "must add to cart to see price" gimmicks? personally, i'm seeing ~25% increase in necessities like shampoo, toilet paper, etc. and ~10% increase in groceries. luxury/impulse buy items are flat to down. all this, with stagnant income and threats of job loss, make for some good times!

Wed, 08/31/2011 - 01:18 | 1618040's picture

A can of coffee is 18 bucks! Two years ago it was on sale for 5.99.

Wed, 08/31/2011 - 07:36 | 1618276 hardcleareye
hardcleareye's picture

I purchase my coffee from Equal Exchange online, by the 5 lb bag, the price as not changed in the last year, still around $40/5lb around $8/lb.  Grind it as I make it...

Wed, 08/31/2011 - 08:33 | 1618352 Silver Dreamer
Silver Dreamer's picture

An even better idea: stop drinking it.  I quit caffeine about a week ago.  Between the cream, honey, and coffee, it was way too expensive for something I really did not need.  Higher prices? No thanks.  I'll just stop buying it then.  Besides, between alcohol and caffeine, the choice is obvious.

Wed, 08/31/2011 - 01:07 | 1618015 dwdollar
dwdollar's picture

They may count the same product sold at two different retailers as two different items.  It would make calculations easy, not discriminatory, and probably accounts for the large number of items.  Far from perfect, but you have to admit it's much better than .gov numbers which pick and choose to massage the target.

Wed, 08/31/2011 - 01:09 | 1618018 fellatio is not...
fellatio is not fattening's picture

Actually if you just track black unwed mothers and their kids you are really close to the billion mark, add in the black men in prison and you're there, and the cost does keep going up, that's the way the liberals want it, buy those votes

Wed, 08/31/2011 - 00:06 | 1617913 chump666
chump666's picture

and the Shanghai is going negative again about to hit -1.00%

Wed, 08/31/2011 - 00:25 | 1617945 Caviar Emptor
Caviar Emptor's picture

This has been the summer of demise of the titans: formerly glorified gurus are tumbling like fallen idols: Paulson, Gross, Ackman...Lots of formerly platinum fund names too. Average hedge fund down 4.1% in August alone. 

So what could explain so many down at the same time? Perhaps what was wroking before isn't working anymore. The playbook is out of print. 

This is the kind of environent that makes investors edgy. Troubled waters ahead. 

Wed, 08/31/2011 - 00:51 | 1617993 fellatio is not...
fellatio is not fattening's picture

Caviar, you ask...."So what could explain so many down at the same time?"  GROUP THINK the fact all these so called genuises buy the same shit, they want to out perform each other yet they all buy the same stuff so as to NOT stand out if something drops, same thing the ANAL YSTS do, everyone likes big cap because it's safe, even if it crashed they all crash together so nobody's wrong.  I have made so much $$$ buying companies (stocks) that all the hedgies sell together, it makes price drop way too much that when they are done selling the stocks bounce back very strong, but I digress.  Almost all of the largest hedge funds own the same companies

Wed, 08/31/2011 - 01:09 | 1618019 Caviar Emptor
Caviar Emptor's picture

Agree. There is definite group think. What I'm saying is that they're now misreading the economy and the market. Perhaps even the Fed. And for sure they aren't "hedged" (Paulson fund down near 40%)

Wed, 08/31/2011 - 01:22 | 1618020 navy62802
navy62802's picture

No. What makes investors edgy is they don't know what the next market manipulation will be or when it'll happen. Thus topsy turvy bizarro world. If Ben Bernanke takes a shit in the forest and no one's around ...

Thu, 09/01/2011 - 21:39 | 1624585 bid the soldier...
bid the soldiers shoot's picture

"This quarry cries on havoc.
O proud debt,
What feast is toward in thine eternal cell,
That thou so many princes at a shot
So bloodily hast struck?"

Wed, 08/31/2011 - 00:32 | 1617949 BlackholeDivestment
BlackholeDivestment's picture

MIT tracks 4% inflation ...and here's the track of Tyrpoon Talas headed for Japan

P.S. and Katia is on it's way to the USA

Wed, 08/31/2011 - 03:35 | 1618146 macholatte
macholatte's picture

now that RSOE is a cool map.  Thanks.

Wed, 08/31/2011 - 07:19 | 1618251 hardcleareye
hardcleareye's picture

Added that one to my favorites, Thanks


Wed, 08/31/2011 - 00:35 | 1617966 Caviar Emptor
Caviar Emptor's picture

Another volcano pops its top: (Etna is in full eruption mode)

The Popocatepetl volcano south of Mexico City is shooting blasts of ash from its crater.

Mexico’s national disaster prevention agency says the volcano has spewed ash more than a half mile (a kilometer) into the sky four times Tuesday. It says there is a possibility ash could fall onto Mexico City overnight.

The agency is urging people to stay at least 7 miles (12 kilometers) from the crater.

The 17,886-foot (5,450-meter) volcano is about 40 miles (65 kilometers) southeast of the capital.

Wed, 08/31/2011 - 01:06 | 1618014 gwar5
gwar5's picture

Time to throw in another virgin..... the volcano wants one with a Brazilian wax this time or the crops will be destroyed.


Wed, 08/31/2011 - 01:09 | 1618022 Mec-sick-o
Mec-sick-o's picture

Have you seen the Popo?

That thing is huge.

Seems as if there is an increasing trend on earth's plate tectonics activity.

Too many people living near that volcano.

Wed, 08/31/2011 - 01:11 | 1618024 Caviar Emptor
Caviar Emptor's picture

I'm glad someone picked up on that! 17,000 feet?? O.M.G.! And only 40 miles from the giant Mexico City? ? What could go wrong..

Wed, 08/31/2011 - 01:41 | 1618067 delacroix
delacroix's picture

at one time, it was just a smoking hole, at ground level, in a farmers field

Wed, 08/31/2011 - 02:18 | 1618098 Mec-sick-o
Mec-sick-o's picture

I think you are confused.  The Paricutin is the one you are talking about, in Michoacan, 1943.

Wed, 08/31/2011 - 00:54 | 1618000 gwar5
gwar5's picture

A billion products? In real time? Impressive display of data.....  Alas, it must take years for an Economics student working on their PhD to learn how ignore such things.    


Wed, 08/31/2011 - 01:04 | 1618010 Mec-sick-o
Mec-sick-o's picture

Inflation on necessary (supply shortage) things (food).

Deflation on unnecessary (demand shortage) things (new house).

Wed, 08/31/2011 - 01:17 | 1618038 Caviar Emptor
Caviar Emptor's picture

When things get bad enough, everything becomes unnecessary beyond food, water, energy and basic shelter. And to think they wanted to condition everyone to stream 3D video to disposable flat screens while wearing LuLus and UnderArmor

Thu, 09/01/2011 - 03:44 | 1621963 Incubus
Incubus's picture

When things get bad enough, everything becomes unnecessary beyond food, water, energy and basic shelter.


I believe this guy values something more than food or water:

Wed, 08/31/2011 - 06:34 | 1618215 Prometheus418
Prometheus418's picture


4% is a rediculous slap in the face to reason.  With three kids who love to eat everything in sight, food costs are a constant concern in my household.  Almost everything has gone up by triple-digit percentages.  Flour has doubled, eggs have more than tripled, cheese has more than doubled, milk is up 50%.  Shoes have doubled.  Clothing has gone up at least 33%, more in most cases.

No money left to buy iJunk, so whether or not the price on other stuff has gone up is irrelevent.  4% my ass.

Wed, 08/31/2011 - 01:13 | 1618031 carbonmutant
carbonmutant's picture

Gee I'm like, totally surprised...

I thought Bernanke was doing a better job than that.

Wed, 08/31/2011 - 01:15 | 1618035 cranky-old-geezer
cranky-old-geezer's picture

So take 4% inflation, add $2.5 trillion in "much more" easing ...

2.5 trillion? Before Nov 2012?  And no QE?

They'd have to drive S&P down to 300 to move that much capital ino bonds.  Wall Street would tar & feather Bernanke.

Forget it, not gonna happen.  QE3, 4, etc is a fact.  There's no other way

Wed, 08/31/2011 - 01:21 | 1618044 dehdhed
dehdhed's picture

looking at the graph, i had no idea that cpi was that close to the more accurate figure

Wed, 08/31/2011 - 01:52 | 1618073 PhattyBuoy
PhattyBuoy's picture

This is complete BULLSHIT!  You folks are really buying this ...

Corn is up 125% YOY ... Zerohedge data.

WTF - I see grocery store inflation closer to 40% YOY ... on innumerable items.

Coffee is up - 25+% with a 25% package reduction from 16 ounces to 12 ounces. Potato chips are the same. Cereal the same.

Meat, bread, cheese, cereal, granola bars. All more than 25% YOY.

Do these f'cking MIT dicks actually go to a grocery store!


Since when did my house have a UPC BARCODE on it ... !




Wed, 08/31/2011 - 02:02 | 1618086 navy62802
navy62802's picture

But you're not factoring in the very low cost of hopium. I think hopium is down like 75% YoY ... and we all know people love to buy huge amounts of hopium. Thus the overall figure of +4% in the BPP calculation.

Wed, 08/31/2011 - 02:00 | 1618080 Thomas Gresham ...
Wed, 08/31/2011 - 02:55 | 1618119 Sambo
Sambo's picture

4% Inflation + tax increase + ....+ 100% stock market levitation = zero complaints from gamblers (aka majority)

Wed, 08/31/2011 - 03:15 | 1618131 FoieGras
FoieGras's picture

MPP doesn't cover the prices of services and rent, or more than 50% of the CPI.

Wed, 08/31/2011 - 04:30 | 1618168 FoieGras
FoieGras's picture

If some people would just take the time and take a look at the 10y bonds. That's all you need to look at to realize there is absolutely zero inflation right now.

If inflation was running at 4% the 10y would get absolutely get demolished. Guess what: it's trading like the 2y. What does that tell us?

Wed, 08/31/2011 - 04:37 | 1618170 Dr. Hannibal Lecter
Dr. Hannibal Lecter's picture

QE3 is already in play.  Keep up or be left behind.

Wed, 08/31/2011 - 13:24 | 1619396 faustian bargain
faustian bargain's picture

Isn't that about like saying "C'mon, if there were inflation, we'd have 15% interest rates by now"?

i.e. Market? What market?

Wed, 08/31/2011 - 04:34 | 1618169 blunderdog
blunderdog's picture

Just because no one's mentioned yet...

"Inflation has nothing to do with prices.  It is a purely monetary phenomenon."

Increased prices are just a symptom, just like death is a symptom of a shotgun wound to the head.

But don't worry--this is a deflationary environment.  So I've heard.

Wed, 08/31/2011 - 05:04 | 1618180 3rivers
3rivers's picture

Oh my gosh!  The SET never even came close to touching 1,000.  and today we are up 24 points. 

Wed, 08/31/2011 - 05:07 | 1618181 Manipulism
Manipulism's picture

OT but realy funny- Denninger is quotet at the GATA website.



Wed, 08/31/2011 - 06:21 | 1618207 uhlmant
uhlmant's picture

I am a military member living in Germany.  Over the past year, our overseas cost of living adjustment (based on currency and actual cost of items on the economy) has increased 76% in Dollars and 58% in Euros.  Everything has gotten much more expensive.  COLA is one of the few CPI indicies that the governement cannot (or currently does not) fudge.  I beleive that Overseas COLA calculation actually works in our favor the more the gov't manipulates CPI, because our actual costs are compared to CONUS costs.  The longer the Government tells the sheeple that CONUS inflation is in check the longer my overseas cola continues to rise.  The market here tells the truth and the real price for goods and services are up up up.

Wed, 08/31/2011 - 06:52 | 1618229 dcb
dcb's picture

Oh, but this well never get in the real press!!!!

Wed, 08/31/2011 - 07:19 | 1618250 papaswamp
papaswamp's picture

"Alas, we are unqualified to have an opinion on the matter."

Roubini got really bent out of shape didn't he? was hilarious watching him shit his biscuit over ZH……"show me a scientific paper!!!"

Dude has no idea what main street looks like.

Wed, 08/31/2011 - 07:20 | 1618255 sbenard
sbenard's picture


Despite a steady drumbeat of bad economic news, Wall St is buying up stocks steadily since Bernanke's speech last Friday. They are convinced that more inflationary quantitative easing by the Fed is on the way. Worse yet, they are convinced that it is necessary!

They are therefore ignoring the strong likelihood of another recession that is already under way, and are instead placing their bets... on more inflation. They are therefore bidding higher the stock market, even in the face of a growing chorus of evidence in support of the view of a new recession. This is going to have terrible results, because the higher cost of the inflation that the Fed denies is going to contribute toward, and even accelerate the onset of said recession.

The Fed, in its hubris and refusal to acknowledge its destructive role in driving us toward that cliff, is advancing the very scenario it claims it wants to prevent. By pursuing a policy that now has an evidentiary history of raising inflation and putting greater pressure on household budgets, they are increasing the likelihood of that recession. It's a classic case of shooting oneself in the foot.

And like the Fed, they either still don't get it, or, as I believe, don't care about the destructive consequences! They don't care because higher inflation and monetary policy that causes it serve their interest. They therefore pressure the Fed to create still more of it despite that it harms their countrymen and advances the very economic scenario that we are now dreading.

Is it mere foolishness, or intent?

Wed, 08/31/2011 - 07:28 | 1618264 sbenard
sbenard's picture


The price of grains -- the staff of live -- has more than DOUBLED since summer last year! Corn, soybeans, and wheat are all up about 125% since June 2010. Those higher input costs have only begun to influence prices in the stores. Pursuit of still more of the causational policies, while refusing to acknowleedge their impact, is unfortunately going to create a consumer catastrophe!

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