No Inflation? Grocery Stores, Gas Prices Tell Different Story

http://finance.yahoo.com/news/No-Inflation-Grocery-Stores-cnbc-1559291069.html?x=0&sec=topStories&pos=1&asset=&ccode=

America, have you figured out Ben and the Federal Reserve as well as the government doesn't work for you yet?
Because if you haven't,
Here's your proof!


From grocery stores to gas stations and most other consumer stops in between, price inflation is shaping up to be the biggest economic story ahead.



Whether it's how much you'll pay for home heating oil or a loaf of bread, don't believe the non-hype: Even if traditional measures of consumer prices aren't yet showing major increases, consumers know what they see.

"It's not good news from a whole variety of perspectives," says Nicholas Colas, chief investment strategist at BNY ConvergEx in New York. "Food inflation is getting very bad and that's just bad news for the majority of consumers who are still stretched. It's bad news for the 42 million people who are on food stamps."

Price inflation is coming primarily from upward global pressure on commodities like the multiple grains that go into food production as well as heating oil and gasoline that power the world's growing economies.

It's also being driven by a weak dollar, which has continued to fall in value as the Federal Reserve has printed more and more money to pay for programs it hopes will stimulate growth.

The Fed is fuelling the catastrophe of fast rising raw material prices

http://www.telegraph.co.uk/finance/comment/jeremy-warner/8090590/The-Fed-is-fuelling-the-catastrophe-of-fast-rising-raw-material-prices.html


It's called inflation and the Federal Reserve and Central banks (help) are the reason it's rising.
Their economic fix is making your meager life unaffordable.


The answer to this question, according to a recent OECD and UN Food and Agriculture Organisation report is a definitive no; global agricultural production is on track to satisfy the expected long-term increase in demand, the OECD reckons.

Yet it's little thanks to public policy, which in combination with the current craze among financial speculators for commodities, seems hell bent on driving up prices to what for millions of the world's poor may be starvation levels.

A Quick Glance At Real World Inflation

http://www.zerohedge.com/article/quick-glance-real-world-inflation

QE2 is next week,
What Casey's chart is showing you is how much food prices have jumped from the other bailouts that Big Ben has dumped into the system.
QE2 make those look like a joke.
The price of food has gone up 48% in the last year.
Now think of a single parent trying to manage this rise, unless their a brain surgeon, they're hurtin bad.
QE2 will pretty much do them in.

The Casey Report provides a useful glance at the real inflation currently ravaging items that are actually purchased by Americans, not those captured by the Fed's BLS statistics: "On average, our basic food costs have increased by an incredible 48% over the last year (measured by wheat, corn, oats, and canola prices). From the price at the pump to heating your stove, energy costs are up 23% on average (heating oil, gasoline, natural gas). A little protein at dinner is now 39% higher (beef and pork), and your morning cup of coffee with a little sugar has risen by 36% since last October." Of course, the ongoing deflation in items purchases requiring leverage will continue to skew the CPI so far south to make all those who bought 5 Year TIPS yesterday at negative yields end up losing money on the transaction.

Chart of the Week: Inflation in the Real World, by Jake Webber of Casey Report

Global food crisis forecast as prices reach record highs

http://www.guardian.co.uk/environment/2010/oct/25/impending-global-food-crisis

Harvests are better and the global food stock is better, but our food is going to sky rocket.
Does that make sense to you?
Some things should not be traded "for profit".
Food is one of them.
You can't just walk away, if the cost of food goes to high.
It a basic necessity that no one can do with out, no matter how rich or poor you are.
Like electricity, there should be price controls set.
Speculators have no business being able to drive up the costs of the everyday essential areas that a human needs for basic survival.
Greed is driving this run, that and the dollar's buying power, which is so heavely weighed down by debt, that it buys virtually nothing.
And it will buy even less when the FED releases QE2.


Cost of meat, sugar, rice, wheat and maize soars as World Bank predicts five years of price volatility


However, opinions are sharply divided over whether these prices signal a world food crisis like the one in 2008 that helped cause riots in 25 countries, or simply reflect volatility in global commodity markets as countries claw their way through recession.

"A food crisis on the scale of two or three years ago is not imminent, but the underlying causes [of what happened then] are still there," said Chris Leather, Oxfam's food policy adviser.

"Prices are volatile and there is a lot of nervousness in the market. There are big differences between now and 2008. Harvests are generally better, global food stocks are better

Here We Go Again..... Dollar Debasement

http://market-ticker.org/akcs-www?post=170185

Now do you believe your government has absolutely no control over the banks and the Federal Reserve?
They will have made a conscious decision to just let you starve, by allowing the FED to cater to Goldman's needs.
And they are needs, the banks need to get those unstable assets that they didn't really commit to the MBS investors out of their hair.
The FED itself is demanding that the banks buy them back because they're not a legally sound material as well as go against the written rules of the being eligible to be considered a viable MBS.
Goldman wants the FED to buy away their Fraud and embezzlement charges, in an out of sight out of mind kind of way.
From the President on down, they continue on with the false story of "there's really no problem here" when the fraud and embezzlement is so blatant that the banks themselves are admitting to it in sworn statements to the court.
It's past time to take our country back from these criminals.

Goldman came out with a report basically demanding (you know how these guys are) $4 trillion in money printing - so says the FX chatter and Zerohedge.

The result? The dollar took an instant header, down more than a 1/2% this evening alone.

How about the price of some of the things sensitive to threats of monetary debasement? These are all price changes since the futures started trading this evening - that is, they're six hour changes in price. These are all things you need to buy, either directly or indirectly.

Oil, up 1%.

Wheat, up 1.49%.

Corn, up 2.05%. (Oh yeah, and ethanol on your gas will soon be mandated to be 15%, not 10%.)

Soy, up 1.5%.

Rough Rice, up 1.51%.

Oats, up a stunning 4.27% (!)

Cotton is lock-limit up 500 ticks. To be fair there's a crop disruption related to Cotton, which is adding to the problem. Dollar debasement, of course, isn't helping.

Remember, these are all soft commodities we produce right here at home. These aren't import prices, they're home-grown products (excepting oil, of course.)

And they're moving - at anywhere from double to eight times the devaluation in the dollar.

The stock futures, of course, are skyrocketing, with the Dow futures up nearly 100 points. After all, everyone loves the market impact of you going broke trying to buy food - especially if you're not rich, and most of America isn't.

This is all quite impressive. And what's even more impressive is that Bernanke and our government will, of course, claim that there is "no inflation", because they don't count the rise in the price of food or energy - even though every person in America has to buy those things.

Bernanke's "inflation target" of 2% a year was just met - literally - in less than six hours.

But don't expect him to stop.

He's will do this every day for the rest of the year, and into next year.

He won't stop unless someone removes him from office.

And there is no indication that anyone is going to do that.

Remember, both the Republicans and Democrats love Ben Bernanke. Obama renominated him and both Republicans and Democrats have lauded him for allegedly "saving us from a second Depression" - even though it is now clear that he knew what the banks were doing and he lied to both Congress and The American People about it.

That is, the truth is that he helped the banks CAUSE the Depression we are in right now. In a just world and a nation of laws he'd be serving a life sentence breaking rocks.

We don't live in that world, and if you're not wealthy, you're screwed - on purpose - by these very people.

All you can do, America, is bend over and a find a stick for your teeth.