Today's Quote
Peter Schiff on inflation:
"In actuality, officially benign inflation statistics (which are coming at a time when actual inflation is getting worse) give the Fed further cover to create even more inflation. So the dollar is not weak because inflation is under control as the consensus believes, but because the opposite is true. Inflation is completely out of control and the Fed, hiding behind phony government numbers that purport otherwise, has the green light to add additional fuel to inflation’s fire. It’s the ultimate irony that the lower the official preferred measures of inflation are (core CPI or the core Personal Consumption Expenditure Index,) the worse inflation actually gets."
"In actuality, officially benign inflation statistics (which are coming at a time when actual inflation is getting worse) give the Fed further cover to create even more inflation. So the dollar is not weak because inflation is under control as the consensus believes, but because the opposite is true. Inflation is completely out of control and the Fed, hiding behind phony government numbers that purport otherwise, has the green light to add additional fuel to inflation’s fire. It’s the ultimate irony that the lower the official preferred measures of inflation are (core CPI or the core Personal Consumption Expenditure Index,) the worse inflation actually gets."
posted by stefankarlsson at 8:32 PM
1 Comments:
I have actually a funny anecdote for you. I've been looking at new computers from Dell for the past half a year or so. In general Dell updates it's prices twice a month. I've noticed that each update drops the price for about a bit more than 1%, meaning that Dell's prices drop around 3% per month and around 30% per year.
During the past two months I've noticed that Dell's prices have actually risen for the first time. The computer I'm looking at cost $2,346 on 08/23; today (10/07) exactly the same computer costs $2,585, meaning that the price has increased by 10.5% in less than two months instead of costing around $2,207 what it would have done if the price drops had continued as usual.
This is of course hardly a good proof for more inflation taking place, but it seems to suggest that larger international companies are protecting their assets against the falling dollar and inflation by rising their prices in advance.
Post a Comment
<< Home