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SOVEREIGN MAN

The biggest bubble on the planet

Given that the entire planet is fixated on a nuclear disaster in the world’s 3rd largest economy, or the goings-on in Muslim nations yearning to breathe free, it seems logical that Miniplenty’s latest newspeak releases went largely unnoticed.

According to Miniplenty, the all item inflation index for consumers rose at a 0.5% monthly rate in February 2011, and a 2.1% annual rate. Seasonally adjusted ‘food at home’, essentially the measure of grocery prices, registered a 0.2% monthly increase and a 1.6% annual increase.

When you peel back these numbers and dive into the details, though, the story gets more interesting. You see, in a single month, the index for fruits and vegetables rose 2.2%, fresh vegetables rose 6.7%, the meat index rose nearly 2%, and the dairy index rose 0.6%.

Coincidentally, the US Department of Agriculture recommends multiple servings daily of fruits and vegetables, and daily servings of poultry, dairy, etc. How is it possible that the staple foods which make up this pyramid rose 0.6% to 6.7% in a single month, yet Miniplenty’s index only rose 0.2%?

Clearly for the purposes of calculating food inflation, the government expects everyone to eat Ramen Noodles and other chemically manufactured food-like substances… not the recommendations of its own Agriculture Department.

None of this actually matters anyhow.

US Federal Reserve policy decisions completely ignore rises in food and energy prices; somehow they’ve been able to convince otherwise reasonable people that this is a legitimate policy stance… after all, the Fed cannot affect the weather and geopolitical events, and creating trillions of new dollars in no way affects commodities prices, right?

Mainstream media dutifully parrots this logical discord… typically with language that reads something like this: “the Fed’s preferred inflation indicator, which strips out food and fuel prices, rose XYZ% last month…”

That’s funny, because it’s tax season right now, and -my- preferred method for calculating my own income is to only count onshore profits from the United States (which are negligible). Unfortunately, the IRS doesn’t agree with me and insists that I use their preferred method (taxing my worldwide income).

Governments and their bedfellows are in the fortunate position of being able to continually redefine reality in their own image, at their sole discretion. If the numbers start looking ugly, they just change the calculation method.

Meanwhile, any bloke off the street can see the effects of rising inflation– anyone who has been to a grocery store, purchased an airline ticket, paid an insurance premium, written a property tax check, pumped gas, sent a kid to college, etc. can see that inflation is alive and well… despite what Mr. Bernanke’s ‘preferred indicator’ suggests.

The price of gold, the price of beef, the price of oil, the value of the dollar, or even that real wages in the US fell 0.5% in February alone– none of these registers an iota of importance in the ‘print now, print later’ doublethink at the Federal Reserve.

Through all of this money printing, there has been much talk (and evidence) of bubbles caused by monetary expansion– a bubble in the stock market, a bubble in commodities prices, a bubble in international real estate, a bubble in bonds, etc.

The truth is, the biggest bubble in the world right now is the bubble that Ben Bernanke and his cohorts live in– where prices are stable and cheap iPads matter. The rest of us live in a world outside of this bubble… and we’ve seen that even the most elaborate smoke and mirrors routine is fallible.

Falling wages, difficult job markets, and rising prices sow the seeds of revolution and pierce the corrupt veil of bureaucratic chicanery. Bernanke’s reckoning day is approaching.

About the author: Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

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Comments on this entry are closed.

  • Dlincourt1

    It will truly be a day to celebrate when the Federal Reserve Criminal Cartel is broken up and the perpetrators are convicted and executed for treason and crimes against all humanity.

    • Uncle Chuck

      Only “we, the people” can break up the Federal Reserve “Criminal Cartel” but…will we?

  • clickoff

    “Bernanke’s reckoning day is approaching.” And hopefully, that of the world’s governments.

    (One can dream, right?)

  • Diogenes

    Great article. This should literally be on the front page of every newspaper. We truly live in interesting times. I think the US government has been telling huge lies through mass media propaganda about the economy for the last 10 years. Many people have had a hard time for the whole past decade, but before September 2008 the headlines were all about those relatively few who where getting rich through the fed welfare of flipping houses. The chances for the headlines changing again after September 2011 are extremely high. I think price controls are coming, which will be instantly followed by shortages.

    The mass media works to give the propagandistic impression that most people aren’t that worried about the prices of their daily consumables like food and gas. Someday soon most Americans will figure out that’s a lie, and stop reading the none sense from the government ally big media companies.

    Unfortunately they will be financially and even physically ruined by that point from lack of preparation. Save food,gold and silver. If a government or big corporate ally says you can eat ipads, they are lying. For that matter if they open their mouth they are lying.

  • Thomas Kroger

    Nice to see that someone has the courage to tell it like it is.

    Those of us who still have functioning brains have gotten used to having our intelligence insulted, every day, in pronouncements from “official” sources. It’s a joke.

    As for me, I’m very worried, and have been for some time. Anyone who has MORE than the basics knows what I mean. And now someone of Donald Trump’s stature openly expresses his own doubts (I have many) about Obama’s birthplace…

    Yeah. These are Chinese interesting times, all right.

    Change I could believe in would include getting Ron Paul in there. But it won’t happen, and probably for the reasons Trump describes. So the End Game of the Our Fiat Currency soap opera will continue.

    No doubt about that. Its the elephant-in-the-living-room scenario in our political process that is behind all this. Nobody, aside from Ron Paul, wants to discuss the Federal Reserve, or the necessity of getting rid of it, and putting Mr. Bernanke behind bars, where he belongs, along with Hank Paulson. TGK

  • Kgroeppe

    I agree. The biggest bubble is the empty bubble inside Bernanke’s head with nothing else to keep it company.

  • Pingback: Piercing the Corrupt Veil of Bureaucratic Chicanery | RevolutionRadio.org

  • Corynott

    As someone who works with produce distributors, I think it’s worth pointing out that much of the increase in vegetable and fruits in the last two months has been largely due to the highly volatile weather patterns in the regions which produce most of the winter fruit and vegetable crops. We’ve seen the prices of things like carrots, cucumbers, lettuce, celery, etc. go through the roof due to acts of god, not good old inflation.

    I agree that there is inflation. I have watched the prices rise from year to year at rate far higher than the government CPI statistics, but this year is different than any in the last 20 and it’s not caused by the Federal Reserve. My customers are absolutely scrambling to due everything they can to find reasonable substitutes for popular vegetables and fruits in order to keep prices down, but right now, a head of lettuce or a box of celery costs 300% of what it should from the regions we would normally get it and the growers in the spring regions are picking early, resulting in lower quality and small vegetables.

  • sharonsj

    Prices have actually been rising over the last two years, but the media has completely ignored it. I complained about this a long time ago, including to a financial news reporter, who said he’d look into it and then never wrote a word. Only now do you see it mentioned in passing, and the official numbers are completely wrong.

    In fact, two years ago I saw pet food go up from 25-50%; and packaging went down by 33% while the price remained the same. I started stocking up on basics some time ago and I recommend that people buy as much as they can now.

  • Xenophon

    Revolt can’t come too soon. It’s time.

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