Today's Chart Of The Day focuses on bogus inflation figures from the government of United States. Before we even start, lets be honest and say none of us actually believe these figures or any other economic statistics any government prints. Having said all that, lets us assume we do at least for the purpose of this post.
My question is this... where is deflation? If you have kids you are paying almost 20% more on education than you did since 2008, if you believe the government figures. If you are sick, or if a member of your family became sick, you are paying 12% more on medical bills since 2008. Geez... I'd hate to see the actual true figures. The point is... has the average salary in the US risen by 5% or 10% or even 20% since 2008? Is anyone actually getting a job in the US? Who benefits from constant QEs aka money printing - Main Street or Bankers?
What the hell are bond bulls talking about anyway? They are trying to convince us that QE does not increase money supply. Has anyone seen M1 or M2 growth in recent times? Deflation talk is total nonsense by bunch of academic dummies and the quickest way to losing money in your portfolio.
Money printing creates inflation but does not recover growth. In history, money printing has never created prosperity, but it has wiped out currency and bond holders almost every time. Is this time going to be different? You are free to believe what you want. What we have in the US, UK and Eurozone is called stagflation... a perfect environment for no one other than farmers and miners, who benefit from rising commodity prices.