Despite Fed Chairman Bernanke's denials yesterday, import price inflation for 2007 was up 10.9%, year over year. That's an amazing number that underscores the great impact of inflation than what the Fed and the U.S. government want to acknowledge. Considering that the government's inflation calculations are intended to minimize and underestimate the true measure of inflation, an import inflation rate of nearly 11% is almost certainly much higher than the headline figure! Inflation is not only alive and well, it is rising rapidly! Even the November import inflation number was revised from a large 2.7% one-month increase to an even more monstrous 3.3% inflation rate. And that was a single month rise!
When one considers that the government changed its inflation calculations 10 or so years ago to minimize and underestimate the true inflation rate, this is a particularly revelatory headline.
Gold $900 dead ahead!
Friday, January 11, 2008
Import Prices UP 10.9% Year-Over-Year
