by John Galt
May 15, 2012 22:30 ET
The usual suspects are at their propaganda inspired best with the monthly BLS report on consumer prices. The mainstream media has the usual headlines:May 15, 2012 22:30 ET
In other words, gas distorted reality as the reality is that the impacts on things the average American need or use every month increased except for electrical utilities and natural gas prices which showed a year over year decline.
The interesting thing is that the rate of increase in gasoline prices did not spell out deflation but when combined with other increases, especially in rent prices, the dollar continues it’s decline into irrelevancy until the crisis in Europe causes the current panic stricken rush into perceived safety. Thus I guess for most items to only have a 3% to 5% increase year over year, this means that inflation is check according to the hedonic insanity of the BLS.
Thankfully if you need a used car, the sash for clunkers program has finally stabilized prices with an average of just over 3% change year over year each month and that should help some lower class families out as long as they are looking for a hot ride like a Ford Escort or ragged out rice powered shoe box:
That’s it until next month when I expect a massive decline in CPI due to the strengthening dollar and a hedonically adjusted realization that people will replace bacon with pigs ears and hamburger with cow tongue. I suppose the other adjustment which will help is a replacement of motor fuel with wind power which after all is relatively cheap as long as one does not live near a Kennedy residence.