sdavid0419

Inflation Likely to Win Tug of War with Deflation

Inflation has been under reported for years as the government has done everything from changing the way it is calculated to deliberately understating it and amending it up multiple times as less people are watching. Small businesses have eaten as much of this as they possibly could and then cleverly reduced the size of their products to hide increases in price. With the slow down in the economy the resistence to reduce prices is huge. In fact some are blatently raising prices that they feel they can get away with.

In the case of animal production for food we are seeing a dangerous situation where it is costing more to feed and raise an animal to maturity than they are fetching at market. Some are liquidating their stock creating a very short term period of cheap meat at the market. Short period that is since once we eat the cheap stuff there will be lots less meat coming in to replace it. I never thought I would see any cut of meat advertised at $10 per pound but that is happening more and more in the supermarkets.

The thing that amazes me is the given when governments print more money than revenues can cover it cheapens all of the money printed before it. ie. hyperinflation. This is a known economic law not an opinion or hypothesis. All of my friends keep telling me "I hope you are wrong" and are doing nothing to prepare for it.