Inflation continues to roar, despite calming words from government officials and legacy media pundits, as anyone who buys groceries could tell you. We long ago gave up going out for dinner, and now we’re very much living week-to-week and hoping the money lasts the whole month. Until my wife’s pension comes in late in the month, we’re utterly skint and trying to avoid spending any money at all. At Ace of Spades H.Q., Buck Throckmorton refutes the pro-government propaganda of, among others, Paul Krugman:
Monty used to use this image at Ace of Spades H.Q., and I certainly think it’s appropriate to include it here.
My household’s monthly grocery bill continues to steadily increase, despite the grocery list containing a pretty consistent basket of goods. We are spending more but not bringing home any more groceries. I am blessed that inflation has not forced us to cut back what we buy, but that hardly seems like an “expectation smashing” spending spree.
This article points out that several categories of retailers are not seeing any revenue growth at all, including clothing stores, electronics and appliance retailers, and sporting goods stores. In other words, these dry goods retailers are seeing declining unit sales as consumers are forced to redirect their decreasing purchasing power toward food, housing, and utilities.
Sales excluding auto and gas increased 0.6%, above estimates for a 0.1% increase compiled by Bloomberg.
That 0.6% monthly increase in spending annualizes to a 7.2% increase in spending over one year. As we’ve discussed often, the government’s published inflation figures are completely fraudulent, with the Bureau of Labor Statistics reporting that as of September the annual inflation rate is just 3.7%, down from 4.0% in May 2023.
John Williams’ website (shadowstats.com) tracks inflation using the same measurements used in the Carter era. The chart below is updated through May 2023, showing the official 4% inflation as reported by the US government (red line) versus inflation if calculated the same way it was calculated in 1980 (blue line.) Actual inflation is more than 12%, which is 3 times the official bogus government figure.
Therefore, the “expectation smashing” consumer spending that the media is reporting is not even keeping up with actual inflation, which means that consumers are bringing home less in the way of retail goods, despite the increased dollar amount they are spending.
This tweet below is not a parody. Nobel Prize winning
propagandisteconomist Paul Krugman actually stated that excluding food, energy and shelter, “The war on inflation is over. We won, at very little cost.”
Thanks, Mr. Krugman, that’s very helpful. While inflation may be out of control on food, energy, and shelter, those are unnecessary discretionary expenditures. If people will just forego extravagances such as feeding their families and putting a roof over their children’s heads, they’ll do just fine in Biden’s economy.
