Thursday, July 24, 2014

There Is No Inflation If You Don't Eat Dairy, Seafood, Fresh Fruit, Pork, Beef/Veal or Eggs....

But if you do, prices have soared since September 2013:


  1. Ron Insana's latest inflation propaganda piece:

    "Inflation is about to fall—and fall hard"

    Should be funny to look back on in a couple of years.

  2. When prices go up on select items, is that "inflation?"

    1. No, that is a side effect of inflation.

  3. Inflation is caused by an increase in the money supply. The dollar is measured in value against a foreign basket of currencies and its value goes up and down throughout the day. Often times, commodity prices like silver and gold increase or decrease, not just due to market demand, but due to the strengthening or weakening of the U.S. Dollar.

    The best lesson I can give you is, as we all know, the U.S. went off the gold standard and silver was withdrawn from being a part of the production of our coinage. In 1964, the average cost of a gallon of gas was 25 could buy a gallon of gas for a quarter that was made of 90%, that same 1964 quarter will still buy you a gallon of gas as it is worth, today, $3.72 ( has changed....has silver gone up? No, it has remained the same in still buys you the exact same amount. It just costs more in dollars for that same gallon of gas. The value of the dollar has declined that much in value since 1964.

    When a 1982 penny is worth 2.1 have to ask what is going the value of the dollar decreases, the cost of the base metals that we make our coinage out of, goes costs more dollars to buy the same amount....hence why they changed the composition of the penny in late 1982.

    Silver and Gold will not get you will only protect your wealth....once the cat is out of the bag and we have a true understanding of how many dollars the Federal Reserve (A private bank by the way) has in circulation and as other countries continue their present course of shying away from the U.S. dollar....we could see a massive decline in the value of the dollar...a dramatic increase in inflation, perhaps bordering on hyperinflation. That is a whole different story, better left for another time. Hope this helps.

    P.S. Buy silver, copper, gold....I don't care if you just put a bunch of Nickels and pre1982 pennies in a jar....they have value. (Nickel is currently worth .0499 while a dime is worth .0183 based on their metal content.... )