Are We Doomed? I Compared Food Prices 3 Months Ago And Now.
Subscribe (for free) to receive my articles directly in your inbox and receive a special gift. Second, if you enjoy this article, please consider becoming a Medium member by using this link and have access to premium, unbiased content from authors not tied to big media.
Recently, the FED released the inflation data for the United States. According to their numbers, US inflation during the last 12 months was 8.5%. This number is enough to put us in the worst inflationary cycle of the last 40 years.
I am only 33 years old, meaning that during my lifetime, the most powerful country in the world has NEVER had such an unnerving general price hike.
But things are worse, because:
- The price increases are accelerating. Fast.
- Geopolitical problems (for example, the Ukraine War) exacerbate the already strained supply chains and economic chaos caused by consecutive lockdowns.
- The problem is not localized like in the 70s. It is global. Countries everywhere are announcing record-breaking inflation numbers. The UK, for example, reached annual inflation of 7%.
And the most sinister of all:
- We can not even really trust this number of 8.5%. In this article, I will tell you why.
We are in an inflationary cycle. The worst of the last…
The current inflation numbers are the worst since the 80s.
But there is a problem: in the 80s, inflation was calculated differently, and this is one of the reasons that during those times it had much higher values.
As explained by the WSJ, the consumer-price inflation index that was used in the 1970s and early ’80s included house prices. The modern version of the index uses a nonmarket rent for owners’ housing costs, which doesn’t include the price of a home.
If calculations were made in the same way as in the 70s and 80s, it is likely we would already have 2-digit inflation.
So, if you are American or European, there is a fair chance that neither you, your parents…