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Janet Yellen wants more inflation, although she already has it

 

Janet Yellen told us at her first testimony in front of the lawmakers that she would likely continue in tapering as long as at least two criteria will be met.

The first one was employment rate dropping below 6.5% and the second was inflation rate. As per a few of her mentions the FED is targeting inflation at least at 2%.

For more than a year, the Fed’s policy committee has said it wouldn’t consider a hike in the short-term interest rate until unemployment dipped to 6.5 percent, as long as inflation didn’t exceed 2 percent. Today, with the jobless rate already down to 6.6 percent, Fed officials including Yellen are saying the 6.5 percent rate is not a “trigger” for raising rates. Christian Science Monitor? – by Mark Trumbull

As Real time Economics commentator Victoria McGrane points out: “She [Yellen] was a longstanding proponent of the Fed adopting a 2% inflation target, and was closely involved in the decision to do so in 2012.”

If we are supposed to believe it and Yellen and her cohorts are telling us that the inflation is that low, I must say, they are lying, or totally out of reality.

From those reviews it is apparent that government with Yellen believes that the US is currently experiencing inflation lower than 2% !! (per US Inflation rate website usinflation.org released on January 16, 2014 the official declared inflation was 1.5%).

Looks like those officials haven’t been shopping groceries or other necessities as middle class Americans are struggling every day. Otherwise they would experience themselves that the inflation is a lot higher than what they are telling us.

Watch the video above to find out a struggle by a mom of two teenage boys trying to keep her ends meet while when shopping realizing that basic things such as ground beef rose by staggering 16.8%, chicken by 18.4%, or college tuition up between 6-8%.

Where is the problem? It is a rigged measuring method. As is typical for politicians to make themselves look better they take any approach and any method to hide the reality and feed citizens with inaccurate data.

Typically inflation is calculated using CPI (consumer price index), which in the past tracked prices of food and energy. Today, these items are ignored:

In the U.S. food, along with energy are stripped out of our CPI, and the result is a more tame inflation reading. Notably, 30 years ago when Ronald Reagan entered the White House, it was precisely the spike in food and energy – ignored today – that had Reagan and others so concerned about inflation. “Low” U.S. Inflation Is a Function of Clever Calculation, by John Tamny

As our government has us for idiots and sheep we are supposed to believe in a recovery initiated by bigger spending instead of saving, bigger debt instead of paying it off, rising consumer prices, which would stimuli economy by encouraging spending, and zero interest rates destroying savers and truly encourage spending over savings.

Where did they get the idea that rising prices will encourage spending from is beyond my layman’s economy understanding. Since when rising prices encourage spending? Who would be willing to pay more money?

See what Peter Schiff has to say about this stupid policy of our FED and government:

 

 

In order to survive our government, as investors we need to look for investments which would protect us against this reckless policy. What are you doing to protect your hard earned cash?

 





4 responses to “Janet Yellen wants more inflation, although she already has it”

  1. Hi Martin,

    the same as in Germany!

    The official inflations rate in Germany is 1,3%!!!

    Never ever!

    The basket with the goods will be manipulated every year.

    More oil and gas in the basket – no problem.

    Less oil and gas in the basket – also no problem!

    You can only work as hard as you can and make money as much as possible!

    Best regards

    Michael

  2. Marvin says:

    I can certainly attest to this. When we bought formula after my daughter was born we were paying $20 a tub, by the end of her year on formula we were paying $25 a tub. It’s absolutely ridiculous and people don’t realize that while electronics and all this other stuff that doesn’t matter gets cheaper, the stuff they need to survive gets more expensive.

    • Martin says:

      True. And many of them in their ignorance blame corporations, companies and entrepreneurs for high prices and not government for bad monetary policy.

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