More Inflation Magic

To shed more light (well actually cast more gloom) on last week’s inflation post here’s an excerpt of an email from Chuck Butler, President of Everbank:

The Fed has turned its back on inflation folks… And here’s some items that you won’t see in the CPI data…
1. Grade-A Large Eggs – Dec. 06 $1.54 a dozen… Dec. 07 $2.10, and current $2.73 a dozen… That’s up 36% in a year!
2. White Bread – Dec. 06 $1.13 a loaf… Dec. 07 $1.28 a loaf, and current $1.62 a loaf… That’s up 12.6% in a year!
3. Whole Milk – Dec. 06 $3 a gallon… Dec. 07 $3.87 a gallon, and current $3.93 a gallon … That’s up 29% in a year!
4. Fresh Whole Chicken- Dec. 06 $1.06 per pound… Dec. 07 $1.17 per pound, and current $1.19 per pound… That’s up 10.3% in a year!

These are the things I talk about all the time, in that an individual can feel the inflation eating away at this wallet… This is just some simple food items… I’m not even talking about things like: Tuition… Insurance… Medical… Movie tickets… And so on…

Your Federal Reserve has turned their backs on inflation eating your wallet folks… Isn’t that SAD?

And here’s some info on inflation in New York City. This data is from late last year.

[Inflation stats for New York City 2007]
Regardless of what the government tells you, inflation is running way more than 4% a year. Not only are they in denial about inflation, they also keep increasing the Money Supply (they’re printing more dollars which is making each dollar in circulation worth less) under the pretext of providing liquidity to prevent a depression-like scenario. I’m under the impression that the US government is bankrupt and doesn’t have any intention of meeting its nearly $60 Trillion worth of future debt obligations. If they can stave off insolvency through liquidity, that’ll be some real magic!

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