http://www.youtube.com/watch?v=KowPgFfQtwQ
Mums know more about inflation than govt. It is astounding that the US reports very low inflation when it is one of the largest money printers, when the US dollar is not strong relative to other currencies, and when other nations are reporting high inflation. After all, we all consume the same beef, oil, steel, zinc, etc.
Food, energy, education, healthcare, toll, stock etc prices are going up. Yet, traders and investors still believe the BS govt inflation numbers, which are fudged using hedonic adjustments and substitutions. They don't do their own shopping. Their butlers do it for them.
A friend recently told me he was shocked that the price of old ChangKee curry puff in Singapore has gone from 80 cents to $1.40, 75% increase in just 3 years. Why? Demand-supply dynamics play a role, but more importantly, MAS increased credit supply by 40% in the past 3-4 years alone, and more before that.
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