If we believe what the Fed and our government tells us is our inflation rate is below expectation. Thank again. Here's the real data based on real products/services. You see the CPI (Core Purchasing Index) which the government uses to gauge our inflation and determine the social security checks cost basis, then they don't include energy cost or food cost. It's only based on durable goods and housing cost which as we all know, has been steady if not declining due to unemployment. Check out the following table:
Give me a break! Anyone with half a brain can see that prices are going up all around them.
Plus, it's bound to get worse. Consider a few examples of what's happened with prices so far this year, in merely nine weeks:
Oil is up 17.3% ...
Heating oil is up 27.3% ...
A pound of coffee is up 13.6% ...
Cocoa is up 21.5% ...
Corn is up 16.8% ...
Cotton is up 55.1% ...
Again, only in nine weeks!
Now, you tell me, does that look like annualized inflation of 3%? Or even 9%?!
I don't think so! The average price appreciation of the above, pretty much staple items, is almost 20%.
What to do in the real world when you can't trust government data? Do you own due diligent and invest in real asset or at least manage your budget to live within your means. I normally like to have investment portfolio of real assets such as energy stocks, food ETFs. silver, gold, and even the NASDAQ components. At least the NASDAQ components are made up of "real companies" with real assets.
For those who are looking for extra income to add to the fixed income, take a look at home based business with little or no inventories with unlimited income potential. I also like to look at home based business as a way for me to offset tax liabilities of my investment income.
Click here for more information
Good luck everyone and may God bless us all.
Lan Shafer
Monday, March 7, 2011
What is the Real Inflation Rate So Far in 2010?
Labels:
401k,
etf,
home base business,
inflation,
investment advice,
ira investing,
ira's,
itemized deductions,
monetary policy,
politics,
precious metal,
retirement,
social security,
us debt crisis
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