Under-rReporting of real inflation

Inflation is already here and will only grow under the massive injections of money into the economy without any increase in productivity.

The only reasons prices have dropped in some instances is because of competition.

BUT the 3rd quarterly reports show a slowing of gross revenue and gross profits.

Still many items have continued to increase in price. With the CORN subsidy for ethanol production
the entire grain price structure has increased; resulting in higher prices for cereal, poultry, livestock meats, milk, cheeses, eggs, breads, and much more.

But the corn subsidy is a sham. Ethanol costs more to produce then the benefit. The only real beneficiaries are the farmers at the expense of all Americans.

The cost for gasoline has doubled in the last four years BUT the price of oil is still around $86 per barrel when the cost for a gallon of gas was under $2.00. That is inflation of cruel type made from corruption and greed at the cost to all Americans.

Home values have dropped but the people who lost their homes are now renting and driving up the cost of rent. Another form of inflation.

Insurance premiums have gone up by about 150% in the last few years. This is like a forced tax on anyone who buys insurance.

While food stamps have gone from 34,000,000 to over 47,000,000 recipients, the raise for 2013 for social security has only gone up by 1.7% This increase is based on a governmental lie in the inflation rate is only 1.7% while the real inflation rate os about 6+%. And the government will not give out the increase in Medicare PArt B until after the election. HMmmmm.  Anyone wonder why??? Do you sense a large increase in this cost because of obamacare???  Another form of inflation.

The value of the dollar has decreased by about 58% in the last four years. This bodes badly for the US Dollar retaining its status as a Reserve Currency. If we lose this status, the cost of everything will increase by about 20% to 35% almost overnight. Now that will be real and damaging inflation.

The only solution is to lower both the annual budget (something not passed by the Senate in almost 4 years) and lower the actual debt. By doing both, we can cut the 'debt service'. This is the interest we pay on the 16 trillion dollar debt and growing that we now have.

When interests rates that are being kept artificially low start to rise, the debt service will start to rise.
As this happens, the US will fid itself with less and less money available to pay the interest. So we will print more money, further de-valuing the US Dollar. THIS IS REAL INFLATION AND IT HURTS ALL OF US.

WE NEED A CONGRESS AND PRESIDENT THAT UNDERSTAND BUSINESS AND THE AFFECTS OF CARRYING TOO MUCH DEBT. AND WE NEED IT NOW.

And that's the way I see it...
Straight Talk with Jay Clifford

Inflation is just around the corner

With the Federal Reserve set to pump 20,000,000,000 into the economy every month and with zero new production, the stage os set for hyper-inflation.

What is hyper-inflation?

That's when the prices on everything go up daily; sometimes hourly and the money becomes worthless.

It has happened before when countries in deep debt like what we are in start printing money instead of cutting expenses. Look up Mexico, Argentina. Germany, Brazil, They all had to change their currency because their currency went hyper-inflation. The chaos during the re-building was terrible for the people of these countries.

Yes, times will be very tough if we cut US Expenses and many people will be hurt. But that is when the churches and families will need to pool their resources to feed those who are hurt the most - just like we did in the 1930s depression.

The alternative is that the entire United States will financially collapse and everyone will be ruined and instantly poor. That means all our savings and all our IRAs and all our cash will become worthless.

The United States is between either hurting some people or collapsing financially totally ruining everyone. Neither outcome is good. BUT one out come will allow the United States to re-build our economy and survive.

The choice is a difficult one but a choice that needs to be made. The sooner the choice is made the fewer people will be hurt.

Staying on the course we are on, it is not a question of IF --- It is a matter of when.

And that's the way I see it...
Straight Talk with Jay Clifford

Inflarion is here now!

Examples of inflation:

I bought cans of tuna. They are now 5 OZ cans. Previously they were 6 OZ cans. The price is the same.
Bought a plastic bottle of Ovaltine. It was 12 OZ net weight. Previous bottle was 14 OZ Same price.
Bought coffee bag - private label at 12 OZ. Used to be 16 OZ. Same price.
Cans of sode (pop) are now 2 OZ smaller. Same price.

AT restaurants, I have noticed that entrees are 50¢ to $2.00 more for the same meal.
AT Pizza restaurants, I noticed that they are 50¢ to $1.00 more for the same size pizzas.

My electricity cost more per kilowatt hour.

My medical insurance premiums are up 12%

My car insurance premiums are up 9% for a one year older car.

My home insurance is up almost 10%.

My real estate taxes have increased by 11% and the value of my home has fallen by 10%.

All this in the last year. My "cost of inflation" is about 10% increase over last year's costs.

That is an example of inflation. Inflation is rising faster than my income. That means my standard of living is declining and my investments are worth less.

Imagine how fast inflation will increase when interest rates begin to rise in a year or so.
Gasoline prices were on its way down, but stopped its decline and is now rising.

The President Bush tax cuts are about to expire on 1.1.13. If they expire, my cost of living will decline an additional 8%.

The Chicago teachers are demanding a 35% salary raise because they will have to "work an extra 15 minutes per day". And they are planning a strike to force Chicago to give them something. That will further increase my future real estate taxes and state taxes.

INFLATION IS HERE - NOW - AND IS GETTING READY TO ROAR SOON.

INFLATION IS THE HIDDEN TAX.

WHY?

BECAUSE IT TAKES THE VALUE FROM YOUR MONEY AND GIVES YOU LESS.

That's the way I see it...
Straight Talk with Jay Clifford.

Really - What is inflation?

When you spend the same amount for a smaller box of food or a smaller candy bar or a smaller can of soda, that is inflation. When you purchased anything today that cost less a few years back, that is inflation.

Ever watch an old movie and see a menu for food with something like this:

Egg Salad sandwich, pickle and fries  25¢ - In a large city this would cost $5

Hot dog and fries plus a soda 25¢ - In a large city this would cost $5

1949 Plymouth  $250 - OK this would be an antique and worth more as an antique.

3 Bedroom, 2 bathroom home - new construction $500   (in 1947) Same home today costs $325,000

16 OZ Largest Chocolate Candy Bar  5¢  Today it's 14 OZ and cost $1.99

Movies cost 25¢ in 1947 and you saw 2 full length movies. In 1960 the cost was $1.25.
In 1985 the cost was $5.25.  In 2012 the cost is $12.00 with only one full length movie.

These are examples of inflation. It creeps up on you but it is a steady creep.

Now let's look at inflation in another way. Assume you have a savings account with $1000 in it.
And today you could buy $1000 worth of merchandise. In one year from now, that $1000 will only be able to buy $965 worth of the same merchandise. That is inflation. If you take this example out for five years, that $1000 will only be able to purchase about $825 worth of the same merchandise.

What is inflation? It is a decreasing in value of your money. With inflation, a dollar today will be worth less tomorrow. Some people call inflation an hidden tax.

Are the retailers making more money with these higher prices? NO! Their costs are going up and the money they get for their products and services will only be able to buy less each year. So where is the money going? That's why it's called a hidden tax. The money gets circulated and just disappears
in the higher costs of everything.

When inflation gets out of control, and the value of the money is dropping faster each day, that is the beginning of a complete collapse in value of that money.This has happened many times since the Roman times and the people of those countries became instantly poor no matter how much money anyone had in the bank.  That is inflation gone wild.

The USA and many of the major countries in the world are now going through increased inflation.

And that's the way I see it...
Straight Talk with Jay Clifford.

Inflation and the 'obama'

Lets look at the base of the obama followers.

They are mostly poor, ignorant about how business works, and

ignorant how the government works. And if you add in all the people 

who were not legally allowed to vote but did vote, then you have

a part of the obama base. Then there is the people who are idealistic.

These idealistic people would starve to death in a more uncivilized world.

Liberals have beliefs of "shoud ofs" that can never to paid for. But they do not

allow balancing the budget to get in the way of their idealism. That is why our

debt is growing beyond the United States' ability to pay the interest on our debt

let alone paying down the principle.

Whatever party comes in, we will have tough times ahead. One party will bankrupt

the United States making misery for all. This could possibly bring down the entire 

world economy causing wars, high inflation and worse. The other party will rein in 

spending and cause misery to many people but not all. The good news about this 

party is that the United Staes can recover from their budget path and the world's 

economy will prosper.

The choice is not about idealism this time. It is about the debt, the US budget and

the ability of the private businesses to create jobs for all that want to work.

And that's the way I see it...

Straight Talk with Jay Clifford

Inflation is more than creeping into the economy.

INFLATION is here and it will get worse. Why would you or I be worried. We need to be worried
because If everything goes up in cost, then soon many things will be out of range for you and
me to buy. Maybe, we will have to begin to ration our income. Should we buy the Organic veggies or
will they cost too much and we are forced to buy regular frozen veggies. Maybe that favorite box
of cereal costs an additional $2; And Beer costs another $3; And Gasoline costs $5 a gallon; And
that can of pop or soda costs another $1 per can. Will your income keep up with inflation. Probably not. WHY? Because the more you earn, the higher Federal, State and Social Security taxes you will pay. Your
net income will not actually grow, And the value of the net income will decline. This means you will not
be able to buy many of the things you want to buy. THAT IS INFLATION.

INFLATION IS A HIDDEN TAX ON EVERYONE. And inflation is here. It's just a matter of how fast
the inflation will increase. Next time - how we can limit inflation.

And that's the way I see it...
Straight Talk With Jay Clifford.

INFLATION IS SHOWING UP NOW

Have you noticed that the soda companies are saying -in the guise of saving users of their products calories- that the containers will be smaller. Yes SMALLER BUT AT THE SAME PRICE. THAT IS INFLATION!

Everyone knows the price of gasoline is about $1.00 higher today than a year ago. THAT IS INFLATION!

When you go to the food markets, the produce is 10% to 25% higher than a year ago.THAT IS INFLATION!

Why doesn't the federal reserve or the government accept the facts that INFLATION IS REAL AND HERE ??

If the Fed acknowledges any inflation, they would have to raise interest rates. That would have two
negative affect.
1) The cost of the debt would go up immediately... thereby increasing the debt faster...
2) The economy would suffered by making borrowing rates higher.

So the FED IS LOOKING AWAY AND PRETENDING NOT TO NOTICE THAT INFLATION IS HERE.

AND THE GOVERNMENT IS DENYING INFLATION BECAUSE THEN IT WOULD HAVE TO INCREASE
SOCIAL SECURITY PAYMENTS.

This would make an already bulging debt increase faster.
But more money in the hands of social security recipients would mean more money in the economy
and that would increase consumer spending. So why not use this as a way to grow the economy???
Because the GOVERNMENT DOES NOT HAVE A CLUE HOW THE ECONOMY WORKS!!!

SO WE ALL PAY THE PRICE FOR BOTH THESE GOVERNMENTAL BODIES PURPOSEFULLY NOT ACCEPTING THAT INFLATION IS REAL AND INFLATION IS HERE.

And that's the way I see it...
Straight Talk with Jay Clifford.

Inflation is real and rising

Anyone who shops for food or clothes has seen the prices rise.
ANother thing that has happened is the packages are smaller but the price remains
the same. Tropicana used to be 64 oz containers. Now they are 59 oz. You might think BIG DEAL 5 oz less.
BUT the truth is that you are paying the same price for 9.2% less product. Said another way - the cost per
oz has risen by about 5¢ per oz. Sounds like small change. BUT it is an increase only one food increase.
Hamburger is up by about 50¢/lb. Mile is up by about $1/gal. Pop (soda) is up by about $1/6 pack.
Beer is up even more. And I do not have to tell you that gasoline is up over $1.50/gal in the last year+.
And anything that has to be transported by car or truck will cost more. HEY! They have to make more money per truck load just to break even.

Then there are CD rates - down to almost nothing. When these rates begin to climb every adjustable
mortgage payment will go up. Plus the cost to carry the USA debt will increase shapely since almost
40% is rolled over every 90 days. This will affect every thing.

Apartment rents are going up since tens of thousands of people have left their homes and are now renting. This puts a high demand on apartments and therefore the rents are going up.

Electricity is going up too.

So lets summarize the inflation in the last few years:
Gas up big time up to 100%
Food up 10% to 25%
Rent up by 25% to 40%
Utilities up by 10% to 20%
Clothes up by 30% - cotton up over 50%
insurance premiums up by 15% to 25% - You can thank obama care for this rise.
State taxes up to cover the union pension funds - that's right! The tax-payers pay the teachers'
and police persons' and the firefighters' and the politicians' pension. That is a rip off.

So when they tell you that inflation is under control - DO NOT BELIEVE THAT.
Inflation will hurt everyone as it increases. And it is creeping up as you read this.

When the interest rates begin to rise sometime soon, inflation will begin to jump in leaps and bounds.

For those who lived thru the 1970, here's examples of what can happen. Autos went from $6000 to $18000. Food shot up by 150%. Gasoline went from 37¢ to $1.28. Daily newspapers went from 10¢ to 25¢. Housing went up by 300% (we can only hope for housing to begin to increase.) And worst of all - salaries hardly moved up. You would be luck to get a 3% to 5% raise every two or three years.

Inflation is real and the one thing that might help is to have some GOLD set aside to sell back when things settle down.

And that's the way I see it...
Straight Talk with Jay Clifford