Mon Aug 25, 2008 7:00am CDT • The Mogambo GuruBy Richard Daughty
- Inflation in Prices Follows Inflation in the Money Supply
- A ‘Systematic Crash’ in US Banking Now a Distinct Possibility
- Love/Hate Inflationship
When you look at what John Williams at shadowstats.com calculates as inflation, according to the time-honored method of actually looking at real prices instead of the “qualified estimates” that are used today, you will see that annual inflation in consumer prices is actually running at over 13%! Some of the worst in American history! We’re freaking doomed!
Anthony Cherniawski of The Practical Investor is not interested in my dour assessment of the situation, and took a look at the Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U), which increased a whopping 0.5% (non-seasonally adjusted) in July, which is plenty bad enough for one month, but one’s tongue tries to hide by jumping down one’s throat when one learns that it was not a fluke, and that prices are 5.6% higher than in July 2007! 5.6% annual inflation is the best they can wring from admittedly-doctored statistics? Yikes! I’m screaming my guts out here!