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.
