At face value, there wasn’t as much price inflation in July as in June, but there’s still a heck of a lot!
(by Half Dollar) I bought a few groceries in person yesterday, and wow, it really is amazing just how fast prices are going up.
I think that yesterday, the food price increases finally hit me with a good sucker punch.
The price increases are pretty much across the board, too, from fresh produce to frozen meat to all of that pantry stuff, and the bottom line is this: If Joe Deplorable can’t figure out how to generate some additional income very soon, he will have to take some drastic action.
And I’m not talking about the drastic action the US Department of Treasury is taking because of the so-called “debt ceiling”.
I’m talking about actual actions because of real world problems.
Of course, Joe Deplorable is not Welfare Queen who gets all sorts of bumps to the monthly food stamp allotment, nor is he Fat-N-Happy Government “Worker”, overpaid and overperked beyond the point of absurd, nor is he Smash-N-Grab Champion, not worried about the ramifications of getting caught sliding a tube of ground beef down his pant leg, so yeah, it’s pretty much BOHICA for Joe’s monthly food budget.
Another thing that struck me were the ongoing supply chain disruptions.
Anybody remember they said those were temporary too?
I mean, I guess eighteen months of disruption is temporary, but it’s eighteen months and counting, not eighteen months and done.
Of course, the MSM Propagandists sugar coat it, and they want the Brainwashed Masses to believe that the disruptions are just on “ketchup packets”, or on “food service to-go bags”, or on some other trivial item that’s more of an inconvenience rather than an actual disruption, but that is not what I continue to see, nor what I saw yesterday in my simple field observations.
Said differently, there was barely any cooking oil on the shelves, barely any sugar, barely any coffee, and those things are the basic building blocks of pretty much any American kitchen.
And to think: We’re lucky here, for we’ve got the dollar.
That luck is about to run out, however.
That said, the Consumer Price Index, the US government’s main monthly inflation report, released by the Bureau of Labor Statistics, has just been released for the month of July.
If you believe the numbers, which I do not believe, prices increased 0.5% on the month and 5.4% on the year.
Here’s a quick snapshot of the latest “data”:
I don’t know about you, but I’m now paying 49.99% more for my favorite tortilla chips, which used to cost $0.92 but now cost $1.38.
I like the “Great Value” brand of tortilla chips, not just because they’re cheaper, but I actually like the taste, the crunch, and the fact that they’re not as broken in the bag as the name brand stuff, because if there’s one thing I hate more than most things in life, it’s broken chips, but notice the problem with the price increase: Off-brand, generic food is the cheapest, but even the off-brand stuff is seeing huge price increases, with the point being that if one is feeling the sting of inflation, one can “downgrade” to the off-brand stuff, but what happens if one is already buying the off-brand stuff?
Now, to highlight the simple absurdity, the lies, really, of government (or Fed) inflation reports, let’s take one specific category from today’s report: New vehicles.
According to the BLS, prices for new vehicles rose 1.5% on the month, and 6.4% on the year.
What’s the problem with that?
The smoke and mirrors is the problem, of course, leading to the fact that the Federal government always gets their cake, and they always get to eat it, or however the saying goes.
Shown easily here by using data from the St. Louis Fed database, if we are to believe the inflation statistics, which, obviously, both the Fed and the Federal government understate by way of official and unofficial policy, for nearly twenty five years, from 1997 to 2020, the price of new vehicles was basically flat:
This is because of the magic of “hedonic adjustments”, whereas since the 2020 model-year vehicle is “better”, so to say, it doesn’t really cost more, even though it costs more.
The absurdity is that the Fed and the Feds get to pick and choose what to adjust at their own convenience.
In other words, if a car costs more, but it has airbags and a CD player in addition to just a seatbelt and a radio, then it doesn’t really cost more because the newer car is better, but what has been happening with new vehicles throughout 2021?
What has been happening is that vehicle manufacturers have been cutting back on features because of the “microchip shortage”, so whereas many things were once standard on some vehicles just a year ago, this is not necessarily the case today, and it’s not just “creature comfort” features either, but useful features, such as Nissan leaving out navigation or Ram Trucks leaving out the “intelligent mirror”.
So here’s the honest question: In general terms, if one is paying more for a new vehicle but getting less actual vehicle for more money, how is that not understating inflation by way of official and unofficial policy?
The US Dollar is, after all, unbacked, debt based fiat currency dependent on exponential, unsustainable growth, so hyperinflation is baked into the cake.
I’m just glad I bought three brand new vehicles in 2020 (one in early 2021) when nobody wanted them and when there was maximum selection.
Gold & silver gyrated on the latest inflation news:
Amazing how silver’s still a country mile away from its all-time record high, isn’t it?
And that’s not even adjusting for inflation…