Exclusive to OpEdNews:
OpEdNews Op Eds

Double Digit Inflation is Here

By (about the author)     Permalink       (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; ; ; ; , Add Tags  (less...) Add to My Group(s)

View Ratings | Rate It


- Advertisement -

Buried deeply within Bloomberg’s recap of November’s various and sundry economic statistics, presented with the usual obfuscations and reassurances of stability in the face of unfolding financial catastrophe is one number that somehow manages to reflect what no other US government statistic does: reveals the truth.  Just to be certain it isn’t ever noticed, you’ll find it nestled in the 23rd paragraph of the article, precisely when the reader’s eyes have completely glazed over from statistics fatigue.  The number in question is the “wholesale price index.”


I won’t make you wait: it’s 3.2%.  For one month.  On an annualized basis, that is (without compounding) 38.4%.  It is the highest increase in 34 years, and if you remember the inflation that we endured in the mid 1970s, you know that this does not bode well for next year’s consumer prices. 


What’s unique about this double-digit inflation statistic is that every other government economic statistic has been reconfigured in recent years to reflect a sunnier picture than would have been revealed by the accurate statistics, as they had always been reported.  Unlike, say the unemployment statistics, which now do not consider those whose unemployment insurance has expired - and, God knows how many hundreds of thousands there are of those right now, even if Sec. Chow insists we have only 4.6% unemployment (wanna buy a lovely bridge in Brooklyn?)


So why is this number trustworthy?  Well, unlike the Consumer Price Index, which supposedly tells us what the inflation rate is, it doesn’t exclude the causal aspects of real-world inflation: food and energy.  The average American’s monthly expenses are dramatically affected by those two expenses more than any other single regular expense.  The other excluded element is housing, which in rents is expressed by the published annual inflation rate itself (in cities with rent control), but has become very significant with the preponderance of ARMs, but that, too goes un-included.


However, the wholesale price index must include the costs of fuel and food, because they fall within the manufacturer’s costs.  So be prepared, because the wholesale price increases of November (and, no doubt, December…) will be coming to a store near you in 2008.  And you never will have heard a word about it on the TV news. 

- Advertisement -
- Advertisement -


Michael Fox is a writer and economist based in Los Angeles. He has been a corporate controller, professor, and small business entrepreneur. After a life-altering accident, he spent five years learning more about medicine and the healthcare (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles
- Advertisement -


The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
4 people are discussing this page, with 4 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

The solution is obvious: Sit in your cold, da... by Gregg Gordon on Sunday, Dec 16, 2007 at 2:15:30 PM
The purpose of my column is to empower, not make y... by Michael Fox on Sunday, Dec 16, 2007 at 3:16:57 PM
We're reminded by the hawks that inflation is ... by Bob A. on Sunday, Dec 16, 2007 at 4:33:05 PM
Prepare to get a knife or a gun so you can ambush ... by John Hanks on Sunday, Dec 16, 2007 at 11:25:38 PM


Tell a Friend: Tell A Friend

Copyright © 2002-2015, OpEdNews

Powered by Populum