Recent headlines below:
“World Bank: Global food prices are rising to dangerous levels”
“Sysco declares force majeure, raises grocery prices”
“The J. M. Smucker Company Announces Coffee Price Increases”
“Kraft warns on price increases”
“Kellogg says it will raise prices”
“Sara Lee to raise prices again on higher commodity costs”
“Bridgestone To Raise Prices”
“Goodyear will raise tire prices up to 6%”
“Allstate rates rise; patience with execs runs thin”
“State Farm wants 28 percent rate increase in Fla.”
“Blue Shield to delay Calif. health rate hikes [for only 60 days]”
“Wellmark [Midwest division of Blue Cross] Rate Hike Approved”
“Abercrombie & Fitch CEO says retailer will have to raise prices”
“Sprint bumps up its smart-phone data plans $10 a month”
“Xcel Energy customers to see rate hikes”
And then there’s this quote to tie it all together:
“Overall inflation is still quite low and longer-term inflation expectations have remained stable.” — Ben Bernanke, February 9, 2011
If it wasn’t perfectly clear before, it should be now. This man is either completely out of touch, or he’s a conniving liar. In either case, you should not allow him to be responsible for your well being.
Don’t let the rising stock market fool you into thinking that everything is back on track. It’s impossible to read these headlines and not see at least half of the things that you use frequently– food, coffee, electricity, mobile phone, insurance…
Here’s the bottom line– failing to properly protect your savings, seek alternate sources of income, and diversify your sovereign risk gets you a free one-way ticket on the economic Hindenburg.
Inflation begets economic trouble. Economic trouble begets social unrest. Social unrest begets political instability… and as we saw in Egypt, political instability (and social unrest) begets a police state.