By Michael Snyder | Guest Writer
Did anyone out there actually expect things to turn out differently? When the federal government kept borrowing and spending trillions upon trillions of dollars that we did not have, we were warned that this day was coming. And when the Federal Reserve kept pumping trillions upon trillions of fresh dollars into our financial system, we were warned that this day was coming. So why is anybody surprised by what is happening at this point? On Wednesday, it was being reported that in December the U.S. consumer price index rose at the fastest pace in nearly 40 years…
Inflation rose at the fastest pace in nearly four decades in December, as rapid price gains fuelled consumer fears about the economy and sent President Biden’s approval rating tumbling.
The consumer price index rose 7% in December from a year ago, according to a new Labour Department report released Wednesday, marking the fastest increase since June 1982, when inflation hit 7.1%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.5% in the one-month period from November.
They keep telling us that the consumer price index was actually increasing at a faster rate back in 1982, but whenever the corporate media makes such a claim they are not being honest.
The way that the consumer price index is calculated has been changed more than two dozen times since 1980, and every single time it has been changed the goal was to make the rate of inflation look smaller.
And if the consumer price index was still calculated the way it was back in 1980, the official rate of inflation would be above 15% right now.
But 7% sounds a whole lot better than 15%, doesn’t it?
We can get a better picture of what is really going on out there when we start looking at individual categories. The following category numbers were posted earlier today by Citizen Free Press…
- Gasoline up 56%
- Heating oil up 42%
- Used cars: 37.3%
- Car rental: 36%
- Natural gas up 31%
- Hotels: 27.6%
- Beef: 18.6%
- Pork: 15.1%
- Furniture: 13.8%
- New cars: 12%
Unfortunately, it looks like the price of gasoline will soon go even higher.
In fact, Reuters is telling us that some analysts are projecting that the price of oil could soon exceed 100 dollars a barrel…
Oil prices that rallied 50% in 2021 will power further ahead this year, some analysts predict, saying a lack of production capacity and limited investment in the sector could lift crude to $90 or even above $100 a barrel.
It takes energy to transport virtually all of the goods that we purchase on a regular basis, and so a higher price for gasoline will cause inflationary pressure throughout our entire economy.
Some companies are responding to this crisis by giving their customers less for the same price that they were charging before.
For example, if you order chicken wings from Domino’s Pizza you will only get a package of eight from now on…
Domino’s Pizza customers ordering chicken wings will soon get fewer of them for the same price.
The pizza chain said it’s cutting the number of wings in its $7.99 carry out offer from 10 pieces to just eight because of rising food and labour costs. Wings will also become an online exclusive, meaning customers can no longer order them via phone.
All around us, there is evidence that our standard of living is rapidly going down.
The cost of living is increasing much, much faster than pay checks are, and that is an extremely alarming trend. According to Zero Hedge, real average hourly earnings have now declined for 9 months in a row…
Finally, and perhaps most importantly for Main Street, real average hourly earnings fell (down 2.4% YoY) for the 9th straight month…
So the next time a politician tries to tell you to be grateful that your wages are going up or you can move to a new higher paying job, just remind him that the surge in the cost of living is outpacing wage gains, thanks to The Fed’s money-largesse and Congress’ lockdown policies and helicopter money have crushed the quality of life for millions.
In other words, most Americans are getting poorer.
Meanwhile, the appalling nationwide shortages that have erupted continue to make headlines all over the nation.
According to USA Today, the following are some of the most severe shortages that we are witnessing right now…
- Baby formula shortage
- Cream cheese shortage
- Aluminium shortage
- Cat food, dog food shortages
- Chicken tender shortage
- Lunchables shortage
- Toilet paper shortage
- Beer shortage
And it turns out that fear of Omicron has also sparked a really bad shortage of cold medicine…
Stores in the Dallas-Fort Worth area are facing cold medicine shortages as flu season picks up and the omicron variant of the coronavirus continues.
“The new toilet paper shortage,” an employee at an East Dallas pharmacy told Fox 4 of the empty shelves.
One pharmacist at a CVS location in East Dallas said that customers with symptoms appearing to be the coronavirus or flu have been buying up cold medicine and cough syrup, while others are coming in to just stock up.
So if you were thinking of stocking up on Benadryl for some reason, I would go out and grab some while you still can.
The corporate media seems absolutely stunned that our politicians in Washington and the magicians at the Federal Reserve have lost control of our economy.
But we were warned for years that what they were doing would kill the U.S. dollar, and the death spiral that we have now entered is going to become exceedingly painful.
What we are experiencing now is not just another short-term economic crisis.
This truly is the beginning of the end for the U.S. economy, and I would recommend that you prepare accordingly.
About the Author
My name is Michael Snyder and my brand new book entitled 7 Year Apocalypse is now available on Amazon.com. In addition to my new book I have written five others that are available on Amazon.com Lost Prophecies Of The Future Of America, The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe. I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.
I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help. During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.