April 26, 2006
Back to inflation. The prices of most labor, ipods, PC's, flatscreens, clothing, information all are in a deflationary spiral for sure - but they are not necessities.
Food, commodities and fuel are what matter in my inflation index. Based on this index, we are careening out of control.
I went to fill up my Honda Pilot today and it cost $54. That is something.
Food prices are flying high. I can barely afford my raspberry and blackberry (the fruit) habit. Eating out - which I do too much - is outrageously expensive and I don't even drink.
If inflation is on the rise - which I think it is - the biggest shenanigans are taking place by the government statistics office (shocking). Jeff Matthews sums it up here .
I sum it up using these lines from a "Few Good Men".
That said - the economy is proving pretty resilient. The stocks of Bank of America and Wells Fargo hit all-time highs today. Historically, bank stocks have struggled in rising interest rate environments.
As my good buddy Blair says - STAGGERING!