Since rents aren’t fully reflected in the Consumer Price Index, we’re behind the curve. And the Fed, which relies on the PCE index, “won’t even see the curve,” says Lee Adler in this must-see video (with chart) that raised my blood pressure.
Entries in Inflation & Devaluation (84)
By David Stockman: These realities reflect a dangerous fiscal and social policy breakdown. They're also thumping proof that monetary policy has exactly nothing to do with employment conditions and job creation.
Boeing got more orders in the first quarter than archrival Airbus. So at the ILA Berlin Air Show, Airbus CEO Fabrice Brégier spoke up against this ridiculous injustice. True to his Frenchness, he exhorted the ECB to do what central banks are supposed to do.
By David Stockman: Average transaction price for a new car in 1997 was $22,000. Now it’s $32,000, about 50% more. But for its CPI, the BLS uses an “adjusted” price that, due to airbags, XM radio, etc., is today exactly where it was in 1997! Hence zero inflation.
By Bhanu Shandilya: If we rely on the Fed, it would be easy to assume that the deflation monster must be battled and vanquished at all cost, or else economic disaster will befall us.
By Dr. Bryan Taylor: Europe was on a bimetallic standard, not a Gold Standard, from the Middle Ages until World War I. Gold triumphed in the 19th century because bimetallism had failed. This should have been taken as a sign that the gold standard too would inevitably fail.
There is nothing like a wealthy central bank chief admitting that he wants to, one, help governments default gradually on their debts; and two, cut the real wages of workers. An honesty the Fed never dared to exhibit when it inflicted waves of QE on American workers.
By Benjamin Shepherd: Global Inflation is relatively tame, but beneath the surface, food commodity indices are soaring. With implications in a globalized, interlinked world.
By David Stockman: The world’s official economic institutions are run by people who believe in monetary fairy tales. The 70 words from IMF head Christine Lagarde are par for the course. She asserts that “low-flation” is the obstacle to economic growth in Europe.
I’m a coffee lover, and this is getting personal: our latte, espresso, or just plain good coffee is going to bite fiercely into our already mauled pocket book. In one crazy chart.
By Benjamin Shepherd, Inflation Survival Letter: The government has a number of incentives to misstate the true level of inflation in the economy, and the recent budget battle between President Obama and Congress is an excellent example of that.
Argentina's Drunken Devaluation Just A Hiccup Before Throwing Up, Passing Out, Waking Up On Floor To Face Reality
By Bianca Fernet, Argentina: Historically speaking, Argentina is really only unquestionably the best at one thing: creating and then surviving economic crises.
The Piranha of Portugal: Greatest Counterfeiter Of All Time (Or: Any Real Difference Between Keynesianism And Counterfeiting?)
Bryan Taylor, Chief Economist, Global Financial Data: Who was the greatest counterfeiter of all time? Governments have done more to destroy their own currencies than all counterfeiters put together, but “government” is not the correct answer.
By Lee Adler, The Wall Street Examiner: Since the 2009-2010 rebound, it has become abundantly clear that the apparent correlation between QE-ZIRP and economic recovery, if it ever existed, no longer exists.
The destruction of the dollar – so clearly visible against the Swiss Franc – took on a sudden virulent form in 1970. It has been going on just about all my life. And it's still going on. When even the Swiss couldn't handle it anymore, they too jumped into the currency war.
Selling airline tickets to our increasingly pauperized consumers is an art. And hiding price increases is an even greater art. While there are people who don’t worry about the price as they luxuriate in first class, others aren’t so lucky. For them, the industry has a special treat: squeezing their hips.
By Dennis Miller: We all share a common goal: to grow our nest eggs and make sure they last over the long haul. Our generation was taught to live off the interest and never touch the principal, but interest rates for CDs and Treasuries no longer allow for that. They don’t even keep up with inflation, so we have to invest our money elsewhere if we want it to last.
By Shannara Johnson, Chief Editor, Casey Research: "After listening to the speakers, I made sure to program the number of the suicide hotline into my cell phone," real estate expert Andy Miller joked at the beginning of his speech. Rick Rule, resource investor and chairman of Sprott Holdings, quipped, "Amazing – I actually get to be the positive guy here."
By Dennis Miller, Miller’s Money: When I was a young buck out in the workplace, financial magazines published worksheets for calculating when you had enough money to retire. The process became easier when we got our first PC. For years, financial planners considered four basic numbers to be conservative estimates. But that all blew up in the fall of 2008.