Record Number Of People Say They Are Paying More For Groceries Now Than Ever Before
Somehow even as all that deflation in home prices continues, like perfectly joined communicating vessels, countervailing inflation continues seeping into pretty much every other aspect of society. But don't take our word for it, (or even gold's, which is just under all time record notional highs): according to Rasmussen, "Americans nationwide continue to lose faith in the Federal Reserve Board to keep inflation under control, with the number who say they are paying more for groceries now at an all-time high." Specifically, "93% of adults report paying more for groceries now than they did a year ago, the highest finding to date. Only four percent (4%) say they’re not paying more for groceries now compared to a year ago. Prior to the latest results, the number that said they are paying more for groceries ranged from low of 75% in April 2010 to a high of 91% in May of this year." However, since many of these same adults are transferring intangible "savings" from their non-payable mortgage check courtesy of a home market that has now ground to a halt for over 6 months, aka squatters rent, to pay for staples, few really mind. They just like to bitch and moan about it because it means fewer Apps downloaded for the iPad.
What is probably just as interesting, is that when it comes to trusting the Fed: that source of unlimited liberal policy, Democrats, as is to be expected, are far more confident that the Fed can keep inflation under control. Or, in other words, have faith that it can do anything at all correctly: a faith that has long since been lost virtually in every other segment of society. Not surprisingly, those whose money is in the market, and are invested in the US, are also hoping the Fed knows what it is doing. Then again as we presented recently, this is a very paltry number on a relative basis, one can see why the bulk of the population is starting to loathe Bernanke and all he represents with a vengeance:
Democrats hold more confidence in the Fed to keep inflation under control and interest rates down than do Republicans and adults not affiliated with either major party.
Investors are slightly more confident than non-investors that the Fed can handle both of these matters.
Yet no matter how they feel about hopium, when it comes to moneyum, everyone is angry:
But strong majorities of adults from all demographic groups agree they are paying more for groceries now than they were a year ago.
These findings add to a string of survey findings showing very negative perceptions of the economy among Americans.
Speaking of confidence, there is none:
Confidence among Americans in the stability of the nation’s banking industry has hit rock bottom.
Overall consumer confidence as measured in the Rasmussen Consumer Index is now hovering above the lowest levels of the post-9/11 era.
Bottom line, some may be surprised to see that a media campaign focused on bashing Perry and his incendiary anti-Fed remarks, may backfire massively:
The latest Rasmussen Reports national telephone survey of American Adults shows that just 31% are at least somewhat confident that the Fed will be able to keep inflation under control and interest rates down, and that includes only eight percent (8%) who are Very Confident. Sixty-five percent (65%) are not confident the Fed can keep inflation and interest rates under control, with 25% who are Not At All Confident. (To see survey question wording, click here.)
Prior to the latest survey, overall confidence in the Fed to handle inflation and interest rates ranged from a low of 32% to a high of 41%. The number who hold no confidence at all is now at its highest level in nearly two years.
Indeed, this is already happening:
Texas Gov. Rick Perry took a double-digit lead over former Massachusetts Gov. Mitt Romney and Rep. Michele Bachmann (R., Minn.) in a Rasmussen Reports survey taken Monday night, two days after Mr. Perry joined the race.
The poll showed Mr. Perry, who entered the race on Saturday, had the support of 29% of likely GOP primary voters, while Mr. Romney had 18% and Ms. Bachmann, who won the Iowa straw poll, garnered 13% of the vote.
Scott Rasmussen, the founder and president of the polling firm, attributed Mr. Perry’s high marks in part to excitement surrounding his entry into the race.
“Gov. Perry is enjoying a bounce from entering the race at precisely the right time,” Mr. Rasmussen said in a summary of the poll. “Now the difficult part begins for the new frontrunner. It’s much easier winning support when people are hoping you will get in the race, than retaining support when you are the frontrunner.”
(Naturally Ron Paul somehow as usual did not make the cut: Rounding out the field, the poll showed Texas Rep. Ron Paul received 9% of the vote; businessman Herman Cain, 6%; former House Speaker Newt Gingrich, 5%; former Sen. Rick Santorum of Pennsylvania and former Utah Gov. Jon Huntsman each got 1%.)
The take home message here is that i) deflation, especially for things that people need, is rampant, ii) everyone loves the Fed, and iii) sarcasm is a popular trope on the pages of Zero Hedge.
h/t John Lohman
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