Friday, March 30, 2012

The Creeping Price Inflation (While Bernanke dines for free)


Personal income numbers are out and they show PI increased $28.2 billion, or 0.2 percent, and disposable personal income (DPI) increased $18.9 billion, or 0.2 percent, in February, according to the Bureau of Economic Analysis, but what is most interesting are the PCE price indexes.

The headline price index for PCE increased 2.3 percent in February versus February 2011. However, digging beneath the headline number, price inflation is much stronger for the items bought on a daily basis. Prices for nondurable goods (goods consumed within a year) are up 4.3% in Feb versus Feb 2011. Food prices are up 3.9% and energy goods and services prices are skyrocketing. They are up 6.6% in Feb versus Feb 2011.

Bottom line: If you don't eat, drink, drive a car or use public transportation, price inflation is no problem. However, if you don't get to eat like Bernanke in the dining room of



Atrium, Eccles Building
Atrium, Eccles Building, the Fed doesn't publicly display and pics of  the dining room Bernanke uses

of the Marriner S. Eccles Federal Reserve Board building and don't get chauffeured around by Secret Service like Bernanke, price inflation is already taking a big bite (and the worst is yet to come)


Bernanke and Geithner dining for free somewhere in DC where price inflation has no impact on them  personally.

1 comment:

  1. In an attempt to get more Americans to reveal the capital they have stashed not in the U.S, the Internal Revenue Service has initiated a system that permits them to divulge the income and pay the taxes they are obligated to pay on it without the penalty fees. Discover more concerning Voluntary Disclosure process here. http://www.tax-defense-network-collection-action.com/collection-action/tax-defense-network-voluntary-disclosure-program-of-the-irs/

    ReplyDelete