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Inflation at 4% (the make-believe kind...)



April 16, 2008 – Comments (6)

So, even the fluffy, feel-good inflation numbers produced by our government show 4%.

No big deal, right? Well, except that food inflation is up 4.5%, transportation up 8.2%, and medical care up 4.6%.

A bit tough to go without those items. Even using that headline number, real interest rates on savings deposits (if you can find a good one) are deep in negative territory, which means responsible American savers are footing the bill 2x.

Most immediately, through inflation, we're soaking up the dumpster juice from the irresponsible borrowers and spenders: those who took out the crummy loans, and those, like Bernanke and Paulson, who are bailing them out now. And, of course, since Bernanke, Paulson, Bush, Schumer, Pelosi, et al. are bailing out the irresponsible with taxpayer-funded give-aways, handouts, guarantees, and bogus tax-breaks to the non-needy (like the homebuilders who helped create the mess) the responsible, hardworking taxpayers will be footing the bill for the politically connected biggies and politically convenient "victims."

I'm trying to figure out how this doesn't qualify as good old-fashioned, (long-discredited) nationalistic socialism...

6 Comments – Post Your Own

#1) On April 16, 2008 at 11:05 AM, Imperial1964 (95.67) wrote:

That's what happens when the bankers are responsible for most all of the campaign contributions of all viable candidates of both major parties.

Just look it up, if you haven't.  You'd be surprised.

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#2) On April 16, 2008 at 11:24 AM, EScroogeJr (< 20) wrote:

I have to nitpick on your definition. It's not national socialism, it's homedebtor socialism. And a bit of bankers' communism, I guess.

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#3) On April 16, 2008 at 11:54 AM, XMFSinchiruna (26.59) wrote:

Your right on the money TMF Bent.  And if only those official numbers told the whole story.  Many intelligent folks who have performed their own estimations of the rate of inflation have it already in the 7-10% range, with the future inflation locked in by the Fed's actions and rampant war spending forecasting rates in the upper teens.

So when Kudlow sits on his high horse and blasts the bears for fearing the worst when our inflation is so much less severe than so many other countries... therein lies the purpose of the fudged numbers... to give puppets like him the lies he needs to tell you so that you'll keep playing their ponzi scheme game.

I hate to say it, but we are on the verge of the most severe economic disruption this country has EVER seen. 

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#4) On April 16, 2008 at 2:04 PM, TMFDeej (98.37) wrote:

We're on the same page, Seth.  I just wrote a piece about food inflation and how it will likely impact restaurant stocks that you might find interesting: Sell Your Restaurant Stocks NOW!!!.  I'd love to get your opinion on it if you get a chance.  I'm out of restaurant stocks, but I am still holding one that would likely be negatively impacted by restaurants doing poorly MIDD.  I love MIDD and I have a sizeable position in it.  These guys knock the cover off of the ball quarter after quarter.  I think that I am going to hold onto my MIDD stock in the hopes that restaurants keep buying its products in an effort to cut costs and that the falling dollar will boost its foerign sales, but its growth could slow.  What do you think?


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#5) On April 16, 2008 at 3:01 PM, TMFBent (99.56) wrote:

There are a few restaurant stocks I'm happy to stick with, though of course everything depends on price. It is going to be interesting times, that's for sure.

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#6) On April 20, 2008 at 11:28 PM, FleaBagger (27.34) wrote:

Seth -

Do you like anybody politically? 

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