Monday, April 21, 2008

Feel Familiar?

Do you ever wonder why you seem to be paying so much more for stuff, yet the government keeps saying that inflation is around 2%? Here's why:

The blue line is comparing apples and apples. In other words, it's inflation as it was originally measured by the government. The red line is inflation as reported by the government after "modifications" in the calculation process in the 80's and 90's, primary to stiff those with entitlements.

So we are actually in the ranges we were in during the inflationary 70's and 80's. And it's not going to improve anytime soon with continuing pressure from energy, food, and metals.

Remember how peak oil folks have been issuing warnings ranging from mild to apocalyptic? Recent developments are just the kind of headlines that you'll see as the water heats up on the boiling frog.

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