This article was originally published by Michael Snyder at The Economic Collapse Blog.
How does it feel to live in a country with double-digit inflation? On Tuesday, the Bureau of Labor Statistics told us that the consumer price index has risen 5.4 percent over the past 12 months, and such a high number shocked a lot of people.
But in order to make a fair comparison to the past, we have to account for the fact that the way inflation is calculated has been changed literally dozens of times over the past several decades. According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation over the past 12 months would be about 9 percent. And if inflation was still calculated the way that it was back in 1980, the official rate of inflation over the past 12 months would be well into double-digits.
Everyone that has been warning that we could soon see inflation rise to levels that we haven’t witnessed since the Jimmy Carter years can stop because we are already there.
The Bureau of Labor Statistics is committing fraud because the numbers that they give us are almost meaningless. For example, U.S. home prices have risen 20 percent over the past year, but the “shelter component of inflation” makes up only a tiny fraction of the overall consumer price index…
We’ll get the latest read on inflation Tuesday, when the Bureau of Labor Statistics puts out its consumer price index for the month of June. As you may recall, the May report showed the biggest annual increase in consumer prices, 5%, in 13 years. But if you’re looking for the recent jump in home prices to show up in that number, you’re likely to be disappointed. The shelter component of inflation, as measured by the CPI, has stayed pretty steady, from around 2% to 3.5%, for the past decade. And some economists have a problem with that.
Wouldn’t it be wonderful if your mortgage payment accounted for only 3.5 percent of your overall budget each month?
Needless to say, such a figure is completely and totally unrealistic.
For most of us, housing is the single biggest expense that we face on a regular basis. And as I have documented in many previous articles, housing costs have been soaring into the stratosphere in recent months.
Car prices are also rising at an extremely alarming pace. According to CNN, the average price of a new car has shot up 12 percent over the past year…
In May, the average new car price hit a record $38,255, according to JD Power, up 12% from the same period a year ago. About two-thirds of car buyers paid within 5% of the sticker price in May, with some paying even more.
Instead of buying a new vehicle, you could purchase a used one instead, but used car prices increased 10.5 percent in just the last month…
Last month alone, average used car prices soared 10.5 percent – the largest such monthly increase since record-keeping began in January 1953. That spike accounted for about one-third of the monthly increase for the third straight month.
Renting vehicles has gotten a lot more expensive as well.
In fact, average rental rates are up a whopping 86 percent since this point in 2020…
Daily car rental rates have increased 86% compared to this time last year and 140% more than 2019, according to Julie Hall, a spokesperson for AAA.
The “5.4 percent inflation” fairy tale that the Labor Department is trying to sell us is absolutely laughable.
And as long as they keep putting out such doctored numbers, they are going to have zero credibility.
Everyone can see that prices are skyrocketing all around us. In such an environment, a restaurant in New York can charge 200 dollars for French fries and some people will actually pay that price…
Serendipity3, the iconic Upper East Side restaurant, set a Guinness World Records title for making the “Most Expensive French Fries” — just in time to celebrate National French Fry Day Tuesday!
Serendipity3’s Creative Director and Chef Joe Calderone and Corporate Executive Chef Frederick Schoen-Kiewert are the masterminds behind the “Creme de la Creme Pommes Frites,” which cost a whopping $200.
Our leaders thought that they could pump trillions upon trillions of fresh dollars into the system without any serious consequences.
Sadly, they were dead wrong.
Inflation is wildly out of control, and one economist just told Breitbart News that the U.S. is starting “to look a little bit like a Latin American country”…
Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI), told Breitbart News on Sunday that the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money.
“[The U.S. is] in [a]very bad position from a long-term point of view. I don’t see how this can end well when we’re running — now — budget deficits something like 15 percent of GDP,” Lachman said on SiriusXM’s Breitbart News Sunday with host Joel Pollak. “This is beginning to look a little bit like a Latin American country.”
It is actually much worse than that.
The truth is that we are in the terminal phase of the greatest debt bubble in the history of the world, and at such a critical moment U.S. officials have decided to systematically destroy the value of the reserve currency of the planet.
Prior to the pandemic, the U.S. government was stealing more than a hundred million dollars an hour from future generations of Americans, but now our politicians have upped that rate to more than 300 million dollars an hour.
And when the next major crisis comes along, they will pass even more “emergency packages”, because spending money is the only solution they have.
Meanwhile, the Federal Reserve continues to pump giant mountains of money into the financial system. Since September 2019, the size of the Fed balance sheet has more than doubled, and that should be considered a crime against humanity.
Unfortunately, the vast majority of Americans don’t even know what the Federal Reserve is, and only a small fraction of the population actually understands what they are currently doing to our financial system.
Facing no significant resistance, our politicians will continue to get us into staggering amounts of debt, and the Fed will continue to transform the U.S. dollar into toilet paper.
Sadly, what they are doing is setting the stage for the collapse of the late, great U.S. economy, and the economic pain that is ahead will affect every single man, woman, and child on the entire planet.
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About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com. In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe. I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. I encourage you to follow me on social media on Facebook, Twitter, and Parler, and any way that you can share these articles with others is a great help. During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.
Shocked a lot of people? Well I guess a lot of people are really stupid. I was around during the Carter inflation fiasco. Silver was 50 bucks which nowdays with INFLATION would be like 300 bucks. Silver is still cheap ya better git sum!
Silver was 50 bucks because of the Hunt Brothers manipulation of the futures market, not because of inflation.
FWIW, it didn’t work out well for the in the end and very few people actually did anything but lose their money speculating on it. It isn’t likely to make gains like that, at least not in inflation adjusted terms, ever again.
That doesn’t mean owning some of the metals is not a good idea, just be realistic about what to expect from them.
Ya that was part of it but GOLD went up to about 850 at the same time. It was INFLATION panic.
It was the plan starting with stealing the election. There will be a military takeover after the collapse and a dictatorship. Biden will be gone as he will not longer be needed as a figure head. The question is who is behind all this and who will end up as “Dear Leader”?
Jocko, you make a great point. Many congress-critters, and others, have turned a blind eye to the destruction of our government. “Dear Leader” indeed.
hopefully not Cameltoe Harris…….better someone who knows left from right and right from wrong……Chinese food anyone?
Big banks (members of the ICC) are planning lockdowns, No personal loans. They are parking the money at the Feds. The moratorium on renters ends July 31st and many will be evicted. This is the day to watch, that when things start crumbling.
Guess what happens when banks quit giving loans. and the unemployed keep sucking on the Feds teat, the Feds quit printing money, and the cash flow stops?
Hyperinflation is always caused by a political crisis. It is a mistake to believe hyperinflation is caused by money printing or too much money chasing too few goods.
So the question we have to ask ourselves is this: are we experiencing a profound political crisis where faith and confidence in the state to manage the economy is disappearing?
I would say “yes”.
We are seeing riots breaking out across the planet. We are even seeing RAHOWA taking place in South Africa. South Africa is the continent’s Lynch pin economy. If it goes down – as it is – that disrupts food and fuel supplies. Once that happens you have hunger and increasing social unrest. It will destabilise all states in sub-saharan Africa.
A question to ponder:
Is hyperinflation caused by political crisis or is political crisis caused by hyperinflation?
It could be argued either way, and both may be right since they seem to be closely integrated with each other.
What is certain is that it destroys the value of your previous financial assets (like bank accounts, retirement accounts, etc.) while opening the opportunity to the debt ridden (or debt carrying as a financial strategy) to pay off previous loans with money that is worth a small fraction of what was borrowed. If the money you owe was borrowed to buy solid assets (housing, land, commodities and such) you come out way ahead, but if you just borrowed to finance your lifestyle then all you get is the chance to easily get out from under your debt.
And that’s only with fixed rate loans, not ones that can adjust interest rates upward (i.e. adjustable rate mortgages, credit cards) to compensate for the inflation.
Plan accordingly. The opportunity will be brief before there is a reset of the system to put you back in the hole again.
What is happening in South Africa is coming our way….get everything you need now and protect it.
Latest Democrat spending bill for infrastructure (really socialist wish list) is for 3.5 Trillion dollars, remember one billion is 1000 million, one trillion is 1000 billion…this won’t go on forever, digital money or not….
Wait til the Great and Terrible Day of the Lord comes upon the world and a loaf of bread will cost a days wages…
Sure glad I am not going to be around to see it…for if you have been redeemed by the blood of the Lamb (Christ Jesus) you will have been removed from this earth before the Man of Sin (the Antichrist) appears…
The stage director (the Lord God) is calling all the shots for He spoke all before He formed the heavens and the earth.
Just a few verse to chew on….to see the Lord God has planned the beginning, the middle and the end.
King James Version
18 Known unto God are all his works from the beginning of the world.
(key in on verse 12 below and see the Lord God is in control)
King James Version
20 He removeth away the speech of the trusty, and taketh away the understanding of the aged.
21 He poureth contempt upon princes, and weakeneth the strength of the mighty.
22 He discovereth deep things out of darkness, and bringeth out to light the shadow of death.
23 He increaseth the nations, and destroyeth them: he enlargeth the nations, and straiteneth them again.
24 He taketh away the heart of the chief of the people of the earth, and causeth them to wander in a wilderness where there is no way
King James Version
4 The Lord hath made all things for Himself: yea, even the wicked for the day of evil.
King James Version
21 The king’s heart is in the hand of the Lord, as the rivers of water: he turneth it whithersoever he will.
2 Every way of a man is right in his own eyes: but the Lord pondereth the hearts.
King James Version
6 That they may know from the rising of the sun, and from the west, that there is none beside me. I am the Lord, and there is none else.
7 I form the light, and create darkness: I make peace, and create evil: I the Lord do all these things.
King James Version
6 Shall a trumpet be blown in the city, and the people not be afraid? shall there be evil in a city, and the Lord hath not done it?
7 Surely the Lord God will do nothing, but he revealeth his secret unto his servants the prophets.
To the true born again Christian, this should be comforting for we are in the palm of the hand of Jesus and His hand is wrapped by the Hand of the Father and no one can pluck us from His hand and when we die and all will die one day, we will be ushered in to glory with the society of saints….
and for those who don’t know Christ as Lord and Savior, well you to will one day die and it will be a different outcome for you will be cast into the Lake of fire burning with brimstone….Confess now that Jesus is Lord and believe in your heart He was raised from the grave and be saved for the one who believes will not be disappointed.
I’ll leave you with the words of the beloved Lord and Savior, Christ Jesus.
Luke 12:5 But I will warn you whom to fear: fear the One who, after He (GOD) has killed, has authority to cast into hell; yes, I tell you, fear Him!
Receive Christ now and fear not.
Confess Jesus as Lord and believe in your heart He was raised from the grave and be saved from eternal suffering and torment.
Praise be to GOD, One in Three, the Father, the Son and the Holy Spirit, to Him be the glory forevermore. in the precious name of Jesus, amen.
Sorry “Christian Soldier”, your “rapture” mythology is a 19th century innovation from a defrocked Anglican and a demented follower. Millions of Protestants have withdrawn from the culture and sat around waiting for Godot.
When bad things happen, there are only two possibilities:
1) We will be around to see it
2) We will be dead
No cosmic Hoover is taking you to Candyland, sport!