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Food Prices & Economic Propoganda

April 1, 2008

0143freshfood.jpg“Consumer food prices are expected to rise 3.0% to 4.0% this year after a 4.0% gain in 2007”, said USDA Chief Economist Joseph Glauber at the U.S. Agriculture Department’s annual outlook conference. This statement sounds somewhat ominous, especially to a person that is already scratching to make ends meet in this economy. However, if you choose to believe the figures that the U.S. government is flying, you are entirely deluded. The reality is nowhere close to the advertisement. Food price inflation is one of largest propaganda tools that the government tries to use and most Americans take it hook, line and sinker. The average American wonders why food prices seem so high while the government announces subtle and insignificant increases every year. The government is advertising magical thinking.

Assuming that USDA Economist Glauber is actually reciting accurate figures, the figures that he cites are monthly increases crafted to hide the reality that the U.S. consumer faces. A favorite game of U.S. propaganda economists is marketing the inflation rate of any number of tracked products and goods. To fully understand the situation, consider what you pay on a credit card loan rate for your Capital One card. If you are fortunate, you pay a yearly rate of probably 23%. That is a monthly interest rate of 1.91%. Does that make you feel any better when you pay your monthly statement or save you any interest on the cost of that money?

Economists are operating using the same deceptive principle, although the figure that they are using has already been tampered with to fit the need based on wonderful extrapolated theories. More about the reality of inflationary figure tampering in a moment. Today CNN is reporting huge increases in food. Milk prices have rocketed 32%. food_prices_rise_2007.jpgEgg prices are reported to have an increase of 50%. The U.S. Department of Commerce is quick to report price increases ranging from 6% to 20% and the government will still report 2 – 4% increases. Based on the figures that USDA Chief Economist Joseph Glauber is reporting, the United States has a yearly food inflation rate of 36% at best. Can you stand an increase of 48%? That is what the U.S.D.A. is advertising. On balance, you are spending a great deal more to eat the same quantity of food that you ate last year with probably the same money you had to spend last year. Food is just a single economic measure. The reason for food price increases goes beyond inflation to the cost of energy, which is also inflationary as well as highly speculative by nature. A good deal of food is lost to government farm subsidies and the moronic use of corn to make fuel. The government is paying farmers not to grow food and with the other hand is paying farmers to grow food to convert into ethanol that is less efficient than gasoline under the guise of saving money and the world. The American consumer is caught in the middle of both policy and economic measures that have been and are being grossly mismanaged while prices rise because of the economic tomfoolery.

Economists love to play with figures. They have adopted the faulty NAIRU, which plays with correlation between employment and inflation. The Federal Reserve manipulates price stability figures and measures to achieve the desired results. The Fed continually adjusts policies that create the illusion of price stability. When prices aren’t stable, the Fed simply creates new benchmarks. How convenient. In the mind of the Fed, inflation cannot go above CPIX inflation rate of 7%. If it does, the masters of logic simply adjust the figures to create a new and more favorable inflation rate that they can work with. If the targets don’t work, they change the targets. Therefore, an accurate measure of inflation and pricing comparisons relative to the value of money is almost impossible. Publicity of favorable figures is what is most important in the Federal Reserve’s marketing scheme. Central banking is unable to deal a lack of control. The control of money has become an interactive science of subterfuge. The appearance of control must be maintained and often is, even if the reality of the money isn’t. The fact is that hyperinflation in a real sense has come to roost and the powers that be are powerless unless they use economic prowess by expanding their education beyond personal limits.

The USDA economist added that “overall retail food prices for 2008 to 2010 are expected to rise faster than the general inflation rate.” Considering that the inflation rate is actually nearly 20% instead of the mere 3% annual rate that is reported, he is right on right on any count.

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