Be Prepared For High Inflation This Summer

For the first time since 2011 the Fed policy-making committee unanimously voted for a reduction in the bond buying program.

At its Jan. 28-29 meeting, the Fed agreed to trim its purchases of Treasury bonds and mortgage-backed to $65 billion a month from $75 billion. Fed policymakers took a first step toward tapering the program in January, reducing the bond-buying from $85 billion a month.

The Feds. claim they will monitor the economy each month and if things start to look bad they will restore higher bond buying to offset the drop in the markets. 

It is very simplistic to think of our economy as being that easy to correct in fact, if the economy starts to fail there is no definite solution or fix to correct it.  For the Feds to claim they can reverse it is nothing more than a bold face lie and further more a ploy for the low information citizen to believe so they can sleep easier and not withdraw all their money from the banks. 

 “The first lesson of economics is scarcity: There is never enough of anything to satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.” -Thomas Sowell

The consumer price index that came out Wednesday shows prices climbed 3.7 percent last month compared to the same time a year ago.  The report indicated that inflation is picking up speed and the only thing we will see not go up this summer is the price of gas. Examples of inflation are already being seen around the country.

In Colorado people are paying about 4 percent more this year than they were last year to feed their families.

"We are running mean and lean with a core staff and everyone wears a lot of hats," Jennifer Chick-Gray from Home & The Range Appliance in Denver said.

Last month, sales dropped by 25 percent at the store; employees say it's common in April and May.

Clothing stores are also adjusting to the lack of demand. With cotton at a 150-year high, clothing prices are expected to jump by 20 percent by the end of the summer.

Vehicle prices are also on the rise. The average price for a new vehicle is hovering around $30,000. That's up $700 since last year.

With inflation on the rise and unemployment still high, this summer will be very interesting indeed.