In 2013, Expect to Pay More for Just About Everything
From Profit Confidential
January 17, 2013 - 11:27am
While quantitative easing (the creation of money out of thin air) may have been needed back when the U.S. economy was on the verge of collapse, at this point, more of it simply equates to asking for more trouble ahead.
As regular readers of Profit Confidential know, I have been very critical about quantitative easing. If the Federal Reserve continues to print more money as it buys $85.0 billion worth of bonds each month, inflation in upcoming years will be a bigger problem.
We have already established that the Consumer Price Index (CPI) reported by the Bureau of Labor Statistics (BLS) doesn’t show the entire picture of inflation. In November of 2012, the BLS reported that the CPI decreased by 0.3%. For the first 11 months of 2012, the inflation rate was 1.6%. (Source: Bureau of Labor Statistics, last accessed January 10, 2013.) But the reality is that the way CPI is calculated is obsol...Continue reading this article »