Back on (the Downward Spiral) Track

June 27, 2008 at 10:53 pm (Inflation)

Suddenly the market euphoria has lifted and reality has set in once again.  As a nation, we were high for a couple of months and now we’re coming down.  It’s becoming apparent that oil isn’t going down anytime soon.  Neither is food.  And inflation will only get worse.

In fact, your last trip to the grocery store — the one where you experienced your own private “Shock and Awe” by viewing your sales receipt — is likely the cheapest shopping trip you’ll experience for awhile.  Same with your last trip to the gas station, and your last electricity bill.  In fact, any recent increases in consumer spending were related less to the rebate checks and more to the stockpiling factor.  And stockpiling is probably the best option — investing certainly isn’t, and neither is saving.  The official inflation rate (which is a grotesque lie) is even less than interest rates the bank will give you.  Unlike the 70s and early 80s, we don’t have 15% interest rates to lift us out of the inflation quagmire. 

Here’s a good telegraph article.  Reality isn’t pretty, but it’s a lot better than the cotton candy cloud reporting we’ve been given since April.  Maybe gold will climb back up to its rightful place again since oil keeps breaking records and now tops $142 per barrel (which is only roughly six times its price in 2001). 

What a great time to be provoking Iran, right mainstream Presidential candidates?  Good thinking.  Too bad no one listened to Ron Paul a year ago when he laid out this economic crisis exactly.  He’s starting to sound angry

Today’s article of doom: EU elite says public vote results will be ignored.  Maybe Zimbabwe should join the EU.

 

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