Stagflation will consume you

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“Real” unemployment figures in the United States are approximately 25% as opposed to the “official” government projection of approximately 7%.  While those individuals are now unfortunately dependent on government assistance to survive, those that have a job are not doing any better.  The definition of stagflation is simply a combination of stagnant income wages vs. rising price inflation of everything you buy.  Recognize through this article that the Federal Reserve (and banks) have inherently created this situation by design and that it is exponentially worse through their Quantitative Easing (QE) program.

Per Vladimir Lenin, a revolutionary Marxist and communist leader of the Russian Soviet Federative Socialist Republic:

The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

The bourgeoisie is simply the middle class.  We are being ground to a pulp between the inflationary and deflationary actions of the Federal Reserve.  If you do not know what I’m talking about, refer to my other article Money as an Enslavement Tool as a 101 course on the Federal Reserve.

Inflation of every day goods

The CRB/BLS Foodstuffs Index which tracks the spot price of 10 agricultural commodities: butter, cocoa, corn, hogs, lard, soybean oil, sugar, Minneapolis wheat and Kansas City wheat. 

index

Since 2001, the index has approximately increased by 165%!!!  How about individual prices of other food items?

1. BACON
4-yr. change: +53%
Current price: $5.55 lb.
6. MARGARINE
4-yr. change: +30%
Current price: $2.11 lb.
2. GROUND BEEF
4-yr. change: +35%
Current price: $4.13 lb.
7. WINE
4-yr. change: +25%
Current price: $10.71 liter
3. ORANGES
4-yr. change: +35%
Current price: $1.21 lb.
8. TURKEY
4-yr. change: +24%
Current price: $1.73 lb.
4. COFFEE
4-yr. change: +31%
Current price: $5.00 lb.
9. CHICKEN
4-yr. change: +22%
Current price: $1.54 lb.
5. PEANUT BUTTER
4-yr. change: +30%
Current price: $2.71 lb.
10. GRAPEFRUIT
4-yr. change: +22%
Current price: $1.02 lb.

And how about that Stagnant income?

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One can easily view the trend after the 2008 stock market crash.  Typical wages have decreased approximately 36% when accounting for inflation.

So, what’s to come of all this?

Let us be clear, everyone will be affected by the coming financial crisis (with the exception of the top 1%).  The people without jobs are already hurting, those in the middle class are slowly getting ground down per the charts above, and even those that are making 3 figures will be impacted as well as they see their financial assets get consumed by an inevitable bubble/market crash.  So what does a common man/woman do?

  • Stock up on the everyday essential items
  • Acquire knowledge and develop skills (prepping, survival, trade skills)
  • Never assume that your job will be safe

 

 

  • Dave

    I don’t know how old the statistics are here, but I am already paying way more for most things. The price for coffee listed in this article is $5.00 a pound. I paid $700 a pound for the cheapest I could find that wasn’t generic. ground beef is listed here as being $4.13 a pound. I paid $4.99 a pound today for medium-grade beef. I wouldn’t touch chicken, since most of it is rotten meat from China.

    I try to buy generic brands but some things like coffee I don’t skimp on… yet. Anyone who buys food can tell you the price of everything is skyrocketing. It doesn’t help that most of our farms and cattle ranches have been forced out of business by over regulation. You can only cut so many corners. If the price of food and power goes up much more, it will hurt most people in a really bad way. We’ll either need to grow our own or starve.

    • Dave

      Oops, I meant to say I paid $7.00 a pound for coffee. Not 700 dollars! That would be the end of my coffee habit if it ever got that expensive. :)