I don't think the 1.5% Inflation rate is accurate...it's much higher than that in my opinion.
The other articles below that one are interesting also!
I'm paying ahead on everything I can & paying all bills as they come in just in case of
any financial crises that may pop up suddenly. Also keeping more cash at home.
This may be a good time to empty bank accounts as much as possible while the US dollar still buys anything.
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That chart is pretty darn ridiculous, and so is the claim that it is Obama's fault. The CPI has been used for decades as a measure of inflation. The CPI represents the spending patterns, not the cost of goods. In bad economic times, the CPI would most likely be lower. The cost of goods does have a bearing, but consumer spending also has a bearing on the cost of goods. The cost of those commodities, listed in the charts, can also reflect the price that other countries are willing to pay for them too. Producers take advantage of that too. Remember that the Feds have kept the value of our dollar low for several years now. Other countries can use more of our dollars to buy more goods.
The CPI reflects spending patterns for each of two population groups: all urban consumers and urban wage earners and clerical workers. The all urban consumer group represents about 87 percent of the total U.S. population. It is based on the expenditures of almost all residents of urban or metropolitan areas, including professionals, the self-employed, the poor, the unemployed, and retired people, as well as urban wage earners and clerical workers. Not included in the CPI are the spending patterns of people living in rural nonmetropolitan areas, farm families, people in the Armed Forces, and those in institutions, such as prisons and mental hospitals.
The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:
FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)
The trouble is countries are not buying the quantative easing low inflation scenario. China and India are buying up all the gold they can as they expect the US dollar to fall in value or the US to default on their Treasury Bonds(China is probably the largest holder).
I agree this mess is not Obama�s fault but on the other hand just like previous administrations he has done nothing to resolve it. Except expecting that the Fed will somehow resolve this problem, which is ridiculous, they will not solve this problem because they are the problem. The more stimulus money they print to save their �to big to fail� banks only means that our already rather worthless money becomes even more worthless. How can you maintain an economy when the money has no real value?
Hey! Now that the US has a whole new bunch of Republicans going in in 2011, surely they'll
save us. LOL! Can't wait to see all the good positive changes we have coming our way!
I see Gridlock ahead and a new term to get used to Folks! "AUSTERITY"
A little austerity might be a good thing. Actually with over a trillion dollar deficit a lot of austerity might be a good thing. It is hard to buy your way out of debt but our fearless leaders are willing to try. Like heaven forbid that they should be forced to reduce their spending as it is only us taxpayers who are required to reduce our spending.
Meanwhile the FED has just announced that it going to buy $850 to $900 billion more of US debt over the next eight months �to stimulate� the economy just like the last 1.75 trillion that it previously bought and which did such an excellent job of stimulating the economy. But I guess being able to pail out a few of their banking buddies with our money has to be worth something. Who knows maybe on an off chance some of that money may even trickle down and actually help the economy. One thing it will surly do is reduce the purchasing power of the money we already have, but then that is the FED�s stated goal. They want inflation cause it forces people to spend their money before it loses too much of its value. Now don�t worry about saving for the future cause government is going to be there to take care of you, and you can be sure it will take real good care of you.
So just like Obama�s supporters were hoping for change in the last election I too am hoping for change in this one. I just hope it will be a bit more productive.
Last saturday I went to the local italian grocery. Soppresota went from 8 a pound to 10 a pound, fontinella went from 5.89 to 6.59 a pound. At wal marts in 6 weeks the large bag of 8'oclock coffee went from 10.64$ to 12.48$. There was an article in the paper this morning that the local electric company applied for a 13.8% rate increase. And the govt tells us inflation is very low.
Yep! You ain't seen nothing yet, Saved!
Remember, you can store paper products and probably laundry detergents in the trunk of your
car, regardless of outside temps, unless you have a basement which I don't.
Stock up now/soon before it all goes up even more....IF your funds permit it.
Since we are in the middle of building a house right now we have been tracking pretty closely on the prices of construction materials...
Last january we were freaking out because lumber had just about doubled in price,,, which would have turned our 100,000 dollar house into a 150,000 dollar house. Then come April it started to drop... and now back to where it was 2 years ago... saving our hide.... prices are all over the place right now and often when I go to the grocery store I fine 1980s prices... then a month later 2010 prices on the same product, then back and forth back and forth.... what I am seeing is a lot of instability..
I am definately going grocery shopping this week at Smiths (Krogers) as they are offering may products this week at early 90's prices... pasta under 4 cents a pound, canned tomatoes 15 ounce can 49 cents. cambells soup under 50 cents a can. mushrooms $1.79 for 8 ounces. I purchased onions for 17 cents a pound a couple of weeks ago. tillamook cheese at 4.50 for 2 pounds ( I purchase 5 packages)..... so what is up with all this?
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Oil is now $86 per barrel. I'm surprised to still see $2.69 per gallon gasoline in central TX. Corn is higher than it's been in a long time, nearing $6 per bushel. Gas stations, around here, are adding 10% ethanol. That means we have to buy more gas, because it now burn hotter and faster.
The commodity futures market was originally designed to keep the end product prices fairly steady or at least slow increase/decrease. All grains and oilseeds have been climbing quickly. So has sugar, coffee and cocoa. One problem is the devaluation of the dollar. It costs more for us to buy foreign goods, but foreign markets want our foodstuff and farmers are way willing to sell.
Oil is now $86 per barrel. I'm surprised to still see $2.69 per gallon gasoline in central TX. Corn is higher than it's been in a long time, nearing $6 per bushel. Gas stations, around here, are adding 10% ethanol. That means we have to buy more gas, because it now burn hotter and faster.
The commodity futures market was originally designed to keep the end product prices fairly steady or at least slow increase/decrease. All grains and oilseeds have been climbing quickly. So has sugar, coffee and cocoa. One problem is the devaluation of the dollar. It costs more for us to buy foreign goods, but foreign markets want our foodstuff and farmers are way willing to sell.
I said that a yr ago. Take some govt money and buy some of the EMPTY condos they built for pennies on the dollar and get rid of them and bring farmland back.
Inflation is only 1.5%
Can't wait to see all the good positive changes we have coming our way! 
Hybrid Mode
