I think Janet just pissed in her Depends. Someone let the BLS go rogue and report that inflation is SURGING, but just for energy, food, medical care and transportation. Who needs that shit in their daily lives. Even the cover-up committee at the BLS is reporting annualized inflation of 4.2% over the last two months. Even these reported numbers are a joke. The BLS drones show fuel oil and natural gas falling, when in the real world fuel oil is up 2% and natural gas is up 4.5% in the last month.With the government now reporting inflation in the 4% range, you know it is now exceeding 8%.
Now for the really good news. The oligarchs are still happy. Corporate profits are still high and stock prices are surging because REAL wages keep falling. Real or inflation-adjusted hourly wages fell 0.2% in May as the cost of consumer goods outraced the rise in worker earnings. Real wages have actually fallen 0.1% in the past 12 months. I’m sure this will lead to a surge in retail sales. I wonder how CNBC will spin the never ending decline in real wages with the never ending rise in living expenses. Maybe Steve Liesman can blather about how beneficial this will be for credit card debt. And we all know credit card debt is what leads to wealth and prosperity.
If you want to know about the future of inflation, ask yourself these questions:
Do you think our little problem in Iraq is going to make energy prices go down in the next few months?
Do you think the continued roll out of Obamacare is going to reduce medical costs over the next few years?
Do you think Obama’s student loan “solutions” are going to decrease tuition in the next few years?
Do you think Obama’s plan to kill coal are going to reduce electricity costs in the next decade?
With drought in California and the Midwest drought having devastated cattle herds, do you think food prices will be dropping?
With the Federal Reserve still pumping out billions of fiat dollars, do you see your lives improving?
They call it the American Dream because you’d have to be asleep to believe it.
What “Low-Flation”? Core CPI Jumps Most In 3 Years As Food Costs Push Higher
Submitted by Tyler Durden on 06/17/2014 08:44 -0400
The Fed is losing its reasons for printing, leaving it desperate to revive the meme that the US economy is in self-sustaining recovery mode. At 2.0% Core CPI has caught up with the hot-flation of PPI removing the crutch of low-flation easement the Fed has been relying on. While Ex-Food-and-Energy is surging (well above expectations), the food index rose 0.5% in May after increasing 0.4% in each of the three previous months; and the index for food at home increased 0.7%, its largest increase since July 2011. This is all happening against a backdrop of real hourly wages dropping 0.1% YoY.
Does this look like the Fed has inflation concerns under control?