Weekly Newsletter   Challenge account   Weekly Newsletter   

Inflation or risk of deflation? No, hyperinflation, but hidden.

Our government is telling us that deflation (price decline) is bad thing and dangerous to economy. The FED wants inflation. They want at least 2% inflation.

They want all Americans to pay more.

They want all American’s savings to be destroyed faster.

They want all Americans to stop saving and start borrowing more money and spending it.

That’s their policy behind it.

Who wants to pay more in a grocery store? Who wants to pay more in housing costs? Who wants to pay more for living necessities? Do you? I don’t!

So how come that it is a good thing to have all prices rising?

Watch Peter Schiff’s latest video and tell me, whether it makes sense or not.



I think we already have a hyperinflation. The reason is the methodology of calculation how the today’s CPI index is constructed vs. how it was calculated originally back in 80’s. Thus the official US inflation is depressed for political gain of our government: “Look how low inflation we have! We need a higher inflation! That is our goal.”

But have you been shopping recently yourself? Poultry is up by 23%, ground beef by 43%, lettuce and apples up by 11.1%, pork up by 60% gasoline up by 25%, wheat 74%, Medicare up 74%, etc. The entire food inflation for 2014 is at staggering 19% (Source: Zero Hedge)

Inflation, Zero Hedge

No matter what politicians and economists are trying to tell us, how great inflation is, how greatly it adds up to economic growth, I agree with Peter Schiff, that higher prices are bad for everybody but government.

In order to overcome such inflation, we have to strive more in our investing, so our capital gains, dividends, or options premium received not only has to make enough gain to cover our retirement living, but must overcome inflation no matter how big it is. So if any today’s politician or economist tells you how great higher costs of everything are, please ask him, how that helps you to save enough for your retirement. I am curious too.

4 responses to “Inflation or risk of deflation? No, hyperinflation, but hidden.”

  1. DivHut says:

    All this talk about inflation/deflation etc. It’s all lies. We all know it. We all fill up our gas tanks and go to the grocery store and see how much money things cost these days. Real inflation is probably close to 10% when you account food and energy. Also, we live in a world of shrinkflation. Shrinkflation is the phenomena many corporations are resorting to by not raising prices rather shrink the sizes of their products. So we end up paying the same dollar amount just get less.

    • Martin says:

      DivHut, I completely forgot about the shrinkflation and yes it counts a lot towards those claims that inflation is low. Yea, sure, it is at first glance, you don’t see that you buy a lot less for the same money than a few years ago. And what makes me mad, that those lairs continue telling their story. I wonder if they really do not see it and think we have no inflation or they just lie outright.

Leave a Reply to Martin Cancel reply

Your email address will not be published.