The latest inflation figures are bad enough – an annualized rate of 9.1%. That figure is, of course, illusory, and bears little relation to reality. The real annual inflation figure (which the government is carefully not mentioning at all), using my suggested correction factor of 3.5 times the “official” numbers and rounding the result, is probably over 30%. Judging by the grocery and other bills Miss D. and I pay every month, even that may be a little conservative.
- The rate of annualized inflation for natural gas is now running at almost 100%. Meaning if things continue, the current price will double again by this time next year.
- The rate of annualized inflation for gasoline is running at 134%.
- The annualized rate of energy inflation overall is running at 90%.
These are the results of the people behind Joe Biden implementing the Green New Deal program by executive fiat.
Also, keep in mind the current increases in farming costs at the field have yet to reach wholesale and retail. The fertilizer, oil, diesel, packaging, transportation and energy costs at the field will not arrive to the fork until later this fall. That is when food inflation will surpass energy inflation.
. . .
Later this year the next wave (#3) of food inflation will surpass the last two waves. Things will get ugly because there are also predictably shortages of food coming. Higher farm costs and global food supply shortages equals much, much higher U.S. prices. Prepare.
There’s more at the link.
Karl Denninger agrees.
Food and energy may well be “excluded” from the Fed’s “core” index but they sure aren’t excluded from what you have to buy to continue to live. They’re arguably the most important items of all, and next up is health care if you need it, and you better not, because that is headed straight into the “you can’t buy it because you can’t afford it, and no, alleged insurance doesn’t help.”
Again, more at the link, and worth your time to read it all.
Wolf Street expresses where we’ve come from in graphic terms. Clickit to biggit.
Those numbers are taken from the Federal Reserve’s official figures, and calculated according to the government-approved rate of inflation. Applying my corrected rate, they’d look much, much worse.
There’s no point in harping on and on about it. However, be aware of what’s happening, and take careful note of every dollar and every cent you spend. Most of us can no longer afford to indulge ourselves: yet many consumers continue to do so, financing it through credit cards and other forms of loans, because they can’t bring themselves to change their spending habits. Reality is about to force them to do that, whether they like it or not.
If we can get a head start on them, and spend our money on what’s really important while it’s still available to buy, we’ll be a lot better off than they will. Food that you buy and store today against future need is still within your budget. When that food costs three, or four, or five times as much, it may no longer be affordable. Therefore, “gather ye rosebuds while ye may” and “make hay while the sun shines“, because rosebuds, hay and sunshine may be in short supply before long – and much more expensive.