WATCH FOR IT!
Repeat after me:
The economy is strong.
Lather, rinse, repeat
Only, actual inflation is 3 TIMES what the government is telling us! All they have to do is take out some important items like food, fuel and housing to make things look great. But, who needs those things, right?
Economic Crisis: The U.S. Political Leadership Has Failed
Since the Clinton administration, the government has misled the public through distortion of economic indicators. Calculations of the GDP are too high and exaggerate the growth of the economy. The consumer price index on which government cost-of-living adjustments are based has eliminated such items as food, fuel, and home buying. Actual inflation is running at a rate of three times what the government estimates; i.e. closer to ten percent than the three percent which is claimed. Regarding the money supply, the Federal Reserve has stopped reporting one of the most important indicators, which is M3—the amount of money available to the largest institutional investors. Data which are available today show without question that the producing economy—that is, the everyday world of people who work for a living—has been in recession for over a year.
UPDATE: Maybe it’s not the corn. Food and Water Watch did an historical analysis show the rising cost of corn is not the reason for increase in grocery prices. Seems it has more to do with overproduction and special interests agribusiness groups.
Federal farm policy over the past two decades has promoted overproduction and low crop prices that consolidated the profits of the farm and food system in a tiny number of special interest hands. During most of the past decade, these agribusinesses were able to purchase corn at very low prices, but consumer retail prices at the grocery store did not decline commensurately.
It sounds a lot like how oil prices are kept high. It’s no wonder consumers are having anxiety. Food prices rose 6.2% the first 6-months of this year.
Consumer anxiety over higher grocery prices is heightened by more modest wage and economic growth. The food industry has been capitalizing on consumer fears about grocery prices by focusing on higher costs for one of their key ingredients: corn.
My son will soon be 13 and the quantity of food he can now consume is a little frightening. Yesterday, I paid $6.49 for a gallon of organic 2% milk. I buy the organic milk so he won’t be exposed to all the hormones they give cows to increase milk production (Have you noticed the breasts on young girls these days?) and so he won’t be exposed to all the antibiotics they give the cows. A pound of Oscar Meyer bacon cost $5.99. My measly 4% merit increase this year is really laughable or cryable, I can never decide which.
Be sure to watch the scanner prices when you’re checking out. In a recent Consumer Reports survey, 70 percent of respondents found mistakes in prices scanned.