3.2.10
For anyone with a pulse, government claims that there is no inflation are just plain silly. First off, if you have shopped for food lately, you will see prices MUCH higher than just 4 years ago. If you order a pizza, buy toilet paper, or heat your house with oil, you have certainly seen price increases. However, if you are faced with rising Social Security payments, you will likely favor the ruse that there is no inflation so that you don’t have to give millions of broke people a pay raise.
So where else is this non-existent inflation showing up? According to a New York Times article, it is showing up in your airfare:
According to the article, a recent airfare deal listed at $229 flying out of New York included over $160 in various fees to government/airport/completely esoteric coffers. This article made hedge fund manager Bill Fleckenstein quip that “Yeah, it’s like shrinking the size of the serving and keeping the price the same.” In November, England will raise the fee to fly from London to New York to $137 for economy class (England really needs your money).
This is how it’s going to be folks. Printing money will cause further dollar depreciation and cost of living increases that many will not be able to afford. Iceland, Dubai, and Greece were merely the contractions. We are now starting to see serious labor pains in Britain. of course the news agencies blame the possibility of a “hung” government as the cause for the Pound Sterling’s (British currency) recent decline. But make no mistake – this is what happens when governments print money to solve their problems. If you want to know what will eventually happen here, watch the UK over the next couple of years.
Consider taking steps to protect yourself by locking in lending rates long time (inflation helps debt holders), owning real assets, and as I have mentioned many times (through cutting various expenses & food expenses (article from April 2008) among my many discussions on this), find ways to cut expenses.
