The Federal Reserve has gone on record as saying that they would like to see a target of 2% inflation. Then, they go on to say that one problem with our economy is that we cannot even approach this low level of price increase. Lately, they have modified their stance to say that the 2% target could be a yearly average and not just a one month occurrence. Dear Reader, I have shown repeatedly the dangers of the central bank. With their excessive printing, they have monetarily devalued our dollar.
There are other forms of inflation like asset class: home costs and commodity costs. Then, there is the one form that everyone sees: consumer inflation. Today, I have a new window to view the Federal Reserve's view of inflation to reveal their hypocrisy and lies.
We all know that this is a presidential election year. What we didn't know was who would win and the ramifications of the winner to the economy? In addition, the pandemic wrecked jobs, businesses and supply chains. The second wave of the virus has extended the economic hardship. However, last week the Bureau of Labor Statistics (BLS) gave out a very revealing report. For the first time in a long time, the BLS actually published an honest picture of the economy. Maybe the changing of the guard gave them a chance to do their job without interference? Maybe by being honest, they were expressing an internal belief that the Democrats would seek true honesty and transparency? By issuing an honest report, they might retain their job. The reasons are many. The facts will speak for itself.
No toilet paper?
Do you remember that after the realization that this virus is dangerous? Supermarkets that resembled third world countries? The Fed chairman, Jerome Powell never said anything about this sad truth. He stuck to script about the economy not reaching his 2% target. This BLS report says groceries have risen since March by 4.1%. This is the largest increase in 50 years.
By the way, the Fed does not include the three things that we, at Evolution declare are essential: food, energy and shelter. The Fed does not include the three in its matrix. They talk about how the increase quality of a computer at a low price keeps inflation down. BS!
Diary...
according to the BLS is up 10% this year.
Beef...
is up 10.8% this year...and we have more and more people coming to food banks due to food insecurity. Poverty is rising.
Eating out is out until the virus passes, but the pain in many restaurants could be a death kneel.
Clothing and its industry have suffered massive losses from online competition and the virus. The survivors will need higher prices to stay in business. Specialty firms that make things like handbags had the same problems as the clothing industry, but the supply lines magnified the stress.
Stamps and postage...going up whether the post office or private concerns.
Computers and electronics...prices have remained low, but supply chains have suffered severely. These distributors will need higher margins and the increase will be passed to the consumer. This will also happen for video games and similar items.
Textbooks...even if schools continue to go viral, the old tome is the bedrock for education. Books have gone up in price by 30%. How is that for an inflation number?
Home Improvement and supplies...staying at home has resulted in more home upgrades. Higher demand, higher prices. This gets extended to furniture as well. The connections of the lockdowns extends to fitness. No gyms? Fitness firms have filled the void. Prices for equipment have not risen, but then again, they were high in the first place.
Health Insurance...the notes in this category could fill a whole chapter. Experts say prices could rise from a low of 4% to a high of 40%. Co-pays will see price increases as well. In a related aspect, sanitizers are up 25% this year.
Energy bills...expect to see a 2.8% increase in 2021.
Homes 4-sale...when the moratorium ends, evictions and foreclosures will rise. Home flippers will keep prices in check as they purchase these units. However, at some point the price climbs will continue. We are trending to a rental nation.
Airline tickets...expect to see a slow rise as travel picks up. By 2025 airline tickets will rise by 27% according to experts.
Social Security...will get a 1.3% increase. Yay!
There, you have it. From the mouths of a government agency to experts in the field. Higher prices will be coming and if Joe Biden keeps his campaign promise to raise the minimum wage to $15 per hour, the effect will get the inflation genie out of the bottle. Together, this screams the meme, End the Fed!
