Scary Sunday reading

He’s a gold bug, who’s selling hyperinflation, but he makes an important point:

In effect, what this caller was asking was how and when did they change the way they measure the rate of inflation?  On a first hand basis he was experiencing inflation in his personal life with rising food and energy costs.  There was a major disconnect between what he experienced in real life on a day-to-day basis and what he was told in published inflation reports.  The host of the show and the financial reporter from the Times had no answers. - Financial Sense “Stormwatch,” June 24, 2005

That was written 2½ years ago (and read the whole thing).  Now read this, from “MaxedOutMama,” from October:

It is true that weak sales for items like clothing, shoes and electronics will cause price cutting for those items in stores, and push the net inflation for consumers who can afford those items down.  But everyone must eat and everyone consumes energy in one form or another, and the ability for the supply chain to absorb such costs without passing them along to the consumer is diminishing rapidly.  These costs are going to continue eroding consumer spending power.  As you move down the income echelon, the pain gets extreme.

It's going to be a long, cold winter for tens of millions of households, and instead of blathering on about giveaways attractive to the upper middle class, politicians should be discussing food stamps and energy assistance programs.

The winter hasn't been all that cold around here (yet!), but I’m still anticipating a several-hundred-dollar increase in heating costs.  So don’t tell me my personal inflation is any 3.6%.

Via: Daily Pundit.

Posted by: Old Grouch in Linkage at 20:33:34 GMT | No Comments | Add Comment
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