During times of economic crisis, one of the first things that people give up is eating out. Restaurants are expensive and eating at home is less expensive. Well, at least it used to be.
Check these year over year inflation numbers for every day food stuffs:
Some of the startling food price increases on a year-over-year basis include
- fresh and dry vegetables up 56.1%
- fresh fruits and melons up 28.8%
- eggs for fresh use up 33.6%
- pork up 19.1%
- beef and veal up 10.7%
- dairy products up 9.7%
On October 30th, 2009, NIA predicted that inflation would appear next in food and agriculture, but we never anticipated that it would spiral so far out of control this quickly.
This is just the beginning folks. Inflation has real consequences, dire consequences. More and more people in this great country will go hungry, even starve, as a direct result of inflation.
This is the inevitable consequence of out of control spending and faulty monetary policy. The Fed is monetizing the debt and is also keeping interest rates low for fear of a massive double dip recession in advance of the election. As a result, many economists expect inflation to get much worse.
Just this past weekend famed investor and friend o’ Democrats Warren Buffet said this about inflation.
“The prospects for significant inflation have increased, not only here but around the world,” Buffett told roughly 40,000 shareholders at the meeting. “Weaning ourselves from the medicine” may be more difficult than enacting the stimuli in the first place, he said.
Buffett said the days of very low interest rates in the United States cannot continue indefinitely.
“It won’t work forever to run huge budget deficits and easy money,” Buffett warned. He said if this causes problems, Congress rather than the Federal Reserve should get the blame.
Look at those numbers above again and imagine what will happen to those already struggling to feed their families.
Elections have consequences. This is one.