Inflation is such an insidious disease. It overtakes you so gradually, that you are unaware what is happening to your wealth. Apart from the blatantly inaccurate data that the Bureau of Labor Standards (BLS) releases on a regular basis, the cost of many of the items we purchase are crafted NOT to show a cost increase.
For example, we had a dinner party on Saturday and Susan went shopping for the ingredients she needed to make her favorite desert. She has been making the desert for years and one of the ingredients is an Angel Cake. The cost of the Angel Cake hadn’t changed, but the cake was ½ the size it used to be. (Since she purchased the smaller Angle Cake and also used the full amount of the other ingredients she always uses, the desert was a disaster. I had seconds, but in the past, I would have gone back again and again and probably licked the bowl.) That’s the same as doubling the cost of the cake! This is a common practice of companies like General Mills and most other providers of retail food. Rather than raise prices, they cut the size of their products… and in many cases keep the package size the same to deceive the buyer.
The policies of the Federal Reserve, designed to keep the stock market, housing market and economy from imploding, are hollowing out the value of the US dollar. Since commodities (including oil, gold and silver) are purchased with dollars and there are so many more dollars floating around the globe in search of things to buy, the price of most, if not all commodities have been increasing for a long time now. (Remember, inflation is not rising prices but an increase in the money supply LEADING to rising prices.) The Times of India reported that April consumer prices hit double digits on pricey veggies, milk and oils. You see, our inflationary policies have an inflationary affect around the world.
Closer to home, a box of Kellogg’s Corn Flakes, which used to weigh 18 ounces, now weighs 12 ounces. In 2000 the box of flakes cost $2.99 for 18 ounces and today it costs $3.79 for 12 ounces. Not only has the cost risen nearly 27%, the amount of flakes you get has been reduced by 33%. On a per ounce basis, the cost has risen from 16.6 cents per ounce to 31.6 cents per ounce. If you want to visit a website that gives you historical price data on many categories of food and other items, check out FoodTimeline.org
Since the dollar is the standard that oil and food are priced in and the dollar is rapidly losing value (well beyond what is officially acknowledged – check out www.shadowstats.com) it is not surprising that countries from Russian to China to Brazil and the Middle East are working to by-pass the dollar as the settlement currency. I recently presented you with James Dale Davidson’s report on the Petro Dollar, which is in eminent danger of losing its special status. Our financial recklessness is costing everyone, everywhere, more and more for their food and energy. This must stop and the way to stop it is to remove the Reserve Currency status of the US dollar. It is coming and when it arrives, be prepared for a shock, as prices of everything we use will skyrocket.