Tue 18 Sep 2007
Hell Hath No Fury Like Inflation Scorned
Posted by RichSlick under The Fed
[8] Comments
The Fed has gone and done did it. With Fed rates lowered by a whopping 1/2 point, we’ll see that hell hath no fury like inflation scorned. I’m heading out to the grocery store today to buy the following items: a loaf of bread, a dozen eggs, a couple of rib eye steaks, a gallon of milk and a package of bacon. I will scan the receipt and post it here or I might create a new website called “real inflation tracker” or something like it.
Each quarter, I will buy the exact same items and in one year, you’ll be able to see exactly what inflation means for you. You might be happy to see your stock portfolio rally a bit but you’ll be paying dearly every month at the grocery store!
8 Responses to “ Hell Hath No Fury Like Inflation Scorned ”
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September 28th, 2007 at 10:50 am[...] I wrote about my concerns with inflation a few weeks ago in a post appropriately entitled, “Hell Hath No Fury Like Inflation Scorned“, a few readers shrugged it off as “it doesn’t pertain to me, food is such a [...]
September 18th, 2007 at 3:46 pm
Amazing. And I thought he was different…
September 18th, 2007 at 4:07 pm
The USD is falling off the cliff. The only surprise for me is why the Yen fell today when it should of rallied.
I expect the Yen to pop back up sometime in the near future.
Gold and Oil high and the Fed cuts rates, UNBELIEVABLE! The market will likely drop over the next couple of weeks in my opinion. I’ll likely buy DOG or DXD in a few days.
September 18th, 2007 at 4:35 pm
Looking forward to those scans. It is an interesting experiment to be sure. Perhaps you should add in the price of a tank of gas?
However, I must add that as long as groceries are a negligible percentage of your living expenses (ie. make more than you spend) then food inflation will have an equally negligible effect on your pocketbook. The poor however…
-dountoothers
September 18th, 2007 at 7:12 pm
While you are at it, buy a large chest freezer and a FoodSaver. Some foods will last up to two years. It should give a little time to get back in the right direction.
I’m only half joking.
I like the idea of tracking things outside of just food. If there’s a run of mad cow disease or something similar it’s going to kill your experiment.
September 18th, 2007 at 7:56 pm
This is interesting and I would like to see the result. However, I am with dountoothers here — my expense is a small percentage of my assets so this should work in my favor.
September 19th, 2007 at 7:17 am
Yes, these type of things only hurt the middle class and working class – not the investor class. Hence it’s a great thing! Right? Beuller?
The only impact this has on the investor class is when they want to vacation in Europe – so no big deal!
$20-$30 more a week in grocery costs makes a big deal to the bottom 50% – but CPI is out today and NO problem, inflation barely blipping according to the ‘government’. I wish I could go to Kroger/Albertson’s and tell them to only charge me 0.1% more this month.
September 19th, 2007 at 7:22 am
I find the “bravado” against inflation so entertaining. “It doesn’t affect me, it’s only the little people” or “It’s a small percentage of my income…”
That’s the WHOLE point. It may be a small percentage of your income NOW but wait a year or two and it won’t be so small.
I can also tell that people who are writing those comments don’t have any kids. Wait till you have to go to the store and buy formula milk, diapers, baby food, etc. Wait till you get your kids medical bills, private tuition, college costs, medical insurance costs, etc. It all changes very fast.