No inflation? Really? Have You Been to the Grocery Store Lately?

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No inflationYour government would have you believe that prices — on the whole — have declined in recent years. It claims inflation is not a problem. But the metric the government uses for determining this aggregate rate of change is the consumer price index — or the CPI. And it is inaccurate.

Your government is lying to you. The United States Federal Reserve does not want us to know the CPI doesn’t include two extremely critical items: food and energy. And the reason the Fed is being so dishonest is because the it knows  it has been printing money and easing credit faster than any other government in the history of the world.

The Fed knows the only way to postpone the dollar’s collapse is to create a measure of inflationary price movements that doesn’t accurately reflect what’s really going on. The government has chosen to exclude energy and food prices from the CPI because it claims these items are more volatile and sensitive to external influences. It claims  the only way to account for true price changes is to exclude food and energy.

Consider this excerpt from an article that appeared a while back in USA Today — just as the debate about coming inflation began to heat up:

“When consumers think of inflation, they often focus on prices of things they buy regularly, such as food and gasoline, which have been going up significantly in price this year.

“But when economists, including Federal Reserve officials, talk about inflation, they often focus on a measurement of price pressures called ‘core’ inflation. Core inflation excludes costs of food and energy goods, the very items that are the most visible prices for most consumers…

“The theory is that food and energy prices historically have been subject to wild swings. Therefore, to get a better gauge of the underlying trend, you should cut those items out.”

Why does the government’s primary metric for gauging inflationary price movements include the word “consumer” in its title, if the government is going to exclude the most important and widely used items by consumers in the economy? In other words, if energy and food are the things consumers purchase most — why would the government exclude these items from the CONSUMER price index?

The Fed is acutely aware of the fact that inflationary price increases always manifest themselves first in the commodities a society uses most — today, those are food and energy. The Fed doesn’t want to admit that prices are increasing; such an confession would mean that all the absurd and destructive policies the government has been implementing over the past century are absolute failures. But the numbers don’t lie, and the numbers are telling us that the policies are failures.

Let’s look at what the prices of food and energy have done during the economic collapse that began in 2007:

– corn has more than doubled in price.

– coffee has more than doubled in price.

– oats have more than doubled in price.

– wheat has more than doubled in price.

– pork has more than doubled in price.

– milk has almost doubled in price.

– orange juice has almost tripled in price.

– oil has more than tripled in price.

– rice has risen by more than 40%.

– Since 2009, soybeans have risen by more than 40%.

– butter has risen by more than 40%.

– beef has risen by more than 50%.

These figures are not open for debate; they are part of a factual public record — easily obtained by anyone with an Internet connection. So the next time you start to believe the shameless lies your government is foisting on you regarding inflationary price pressures, take a deep breath, get in your car, and drive to the grocery store. That should leave you with no doubt as to exactly how much inflation has taken hold of our economy.


www.PacoAhlgren.com

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