Every day you hear the boobs on CNBC and the rest of the mindless mainstream media regurgitating the Federal Reserve concerns about deflation, as if lower prices somehow hurt the lives of Americans. Who doesn’t like lower prices? Are people really pissed off that gasoline has dropped from $3.60 a gallon to $3.00 in the last four months? The BLS manipulated, massaged, and adjusted bullshit CPI number says there is virtually no inflation. It is heavily weighted towards a made up housing calculation and would only show an increase if people actually got wage increases. The lack of wage inflation, combined with high inflation for food, utilities, rent, tuition, and healthcare has created a new flation – FUCKFLATION. The middle class gets fucked, while the bankers and oligarchs drink champagne, eat caviar, and conduct interviews with CNBC about their fears of deflation.
Guest Post by Anthony Sanders
Inflation? House Prices, Beef, Big Macs And Wages (Beef UP 74% Since 2009, Wage Growth DOWN 45%)
If we look at the YoY growth in the Consumer Price Index (CPI), the “inflation” rate in the US is 1.7%.
Since December 2008, beef prices have risen 74%. House prices have risen “only” 17%, chicken has risen 18.5%. Meanwhile, real median household income has fallen 4.6% and average wage growth has fallen 45%.
Of course, house prices have really skyrocketed since 2012 (UP 30% since end of Q4 2011) even though wage growth remains stagnant (at little more than the stated inflation rate).
Then we have McDonald’s Big Mac! Since President Obama took office, Big Mac prices have risen 34.5% (while real median household income has declined 4.6%).
Here is a chart of currency adjusted Big Mac prices.
For those of you that have never eaten at McDonald’s or had a Big Mac, here is the image of a Big Mac … and the reality.
At least “Le Big Mac” holds it form better than Burger King’s “Whopper.”
So, there you have it. The US allegedly has virtually no inflation, yet house, beef, chicken and Big Mac prices keeps shooting up through the roof.
But then again, so has college tuition and medical costs, ALL with falling/stagnant wage income.
Exactly
With regards to the Whopper ad vs real sandwich, women are full of filler materials as well. If they carried an ingredients label they’d say 20% silicone.
The plan is working. They’re squeezing the middle class like a zit.
A stupid plan which reduces profits and what profits they do make are being spent on stock buybacks.
Wow. Hadn’t thought of it, but Janet must be shitting bricks over the fall in gas prices.
The dreaded DEFLATION.
Gas prices affect EVERYTHING.
Charles Biderman at Trim Tabs.
The bottom line. Since Hussein took office, there are 900,000 less full time jobs and 15,000,000 .
Mike Moskos – By gas I assume you mean gasoline and not natural gas. The price of gasoline is immaterial if you don’t have two nickels to rub together, a pot to piss in,a car or a job. However the piece of food which is a necessity is tied to the price of diesel fuel. The spread between gasoline and diesel prices are increasing although both are dropping, gasoline is dropping faster. This is due to demand destruction due to price.
Industrial agriculture is tied to diesel. The local farmers agree if the supply of diesel dries up they are out of business unless the go to permaculture with 50 to 100 acres with horses like the Amish and Mennonites. The discoveries/inventions of two men based on fossil fuels are responsible for over 80% of the worlds population, Fritz Haber and Norman Borlaug.
Roy….I don’t believe the Mennonites use horses and plows….at least not the ones I know. They do make great food.
BUCKHED – There are different sects of Mennonites. I live among the Stauffer Mennonites or Old Order Mennonites. They are the horse and buggy ones who farm with horses. My neighbor across the road farms 50 of 70 acres with a dairy operation. The one behind me joined a more secular sect, sold his horse and buggy and bought a truck. My other neighbors raise produce which is much more labor intensive.