The FED Says That Inflation Isn't Real.... May 25, 2021 By Anna Von Reitz
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The FED Says That Inflation Isn't Real.... May 25, 2021 By Anna Von Reitz
That is a tough sell for someone standing in a lumberyard anywhere in America this morning, because they are paying anywhere from 30% to 130% more for the same product this year over last year.
Those who are building, remodeling or repairing wooden structures are thinking that inflation is real enough.
So is your Honorary Great-Grandma from Big Lake, Alaska.
Obviously, I have been a homemaker for a long time, and one of my peculiarities is to observe the prices of basic commodities. I even jot them down. So I am in a position to tell you that the very same loaf of bread that cost me $1.69 in 1992 now costs me $4.39 if I buy two loaves at once, and $5.08 if I buy a single loaf.
That's not "real" inflation? Funny. I could have sworn....
The minimum wage in 1992 was $4.25 per hour, which is, with phantom inflation included, the equivalent of $8.01 today, when the minimum wage is $10.30 per hour. So there has been a significant gain in wage per hour, however....
I could buy 2.5 loaves of bread for an hour of work in 1992, and only 2 loaves for the same hour in 2021. That's a loss of half a loaf to inflation, or 20% of the total transaction, no matter how you slice it.
Just to keep even, the minimum wage would have to increase to $12.36 per hour, but then, that in itself is inflationary.... and so you see the vicious cycle of inflation and how it perpetuates itself.
You have to make more money to buy the same amount of any commodity, and then the commodity prices increase, so you have to make more money to keep even.... and that, my friends, is what I call inflation and it feels real enough to my pocketbook, even if the FED is telling me that it is an illusion.
Continue reading http://www.paulstramer.net/2021/05/the-fed-says-that-inflation-isnt-real.html
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