Wikipedia:  “In economics inflation is a general increase in the prices of goods and services in an economy.”

This increase is usually measured with the Consumer Price Index (CPI).

Inflation effects all of us.  It lowers the standard of living for the vast majority of people in a society.  It raises the prices of things we need, like food, clothing, transportation and lodging, at a much faster rate than it raises the money we earn, such as wages, pensions or returns from investments.

It forces many people to work two or three jobs, in order to maintain their standard of living.

It forces some people out of the homes they can no longer afford, and into cars or RVs.    Some who are even less fortunate, end up on the street.

Governments report the current rate of inflation via the C.P.I.  This is unfortunately not an honest measurement, since major components are often left out or ‘seasonally adjusted.’

To find a more honest inflation number, the reader is invited to visit www.shadowstats.com.    When this article went to press Shadowstats.com reported the US C.P.I. to be 7.75% above year ago numbers.

Another reliable source of information is www.chapwoodindex.com .  This index lists the cost of living in 10 major US cities.

While it is obviously cheaper to live in a small community than in a big city, it is nevertheless helpful to know the cost of city living, if for no other reason than for comparison.

The latest Chapwood index was taken during H1/2023 and it lists Phoenix AZ as the cheapest of 10 major cities at a 7.4% increase over last year, and New York as the most expensive at a 12.2% hike above a year ago.

Canadians only have the ‘official CPI’ as a guide.  It is compiled by Statscan on behalf of the Federal Government.  For March 2024 the CPI is listed at +2.84% over a year ago.

It is a safe and very important assumption, to add at least 3% to the Canadian CPI number, thus bringing it up to a more realistic +5.84%.  (A meal at McDonalds costs double what it cost 10 years ago!  Inflation there is 10%.)

Anyone shopping for food, improving a home, buying a car, or paying car insurance knows instinctively that 2.84% is a sick joke!  We’re asked to believe that Canada’s rate is 4.9% below the US rate as reported at shadowstats.com!

Inflation  is caused by government officials aided by central banks.  To state it simply:  a finance minister wants money for a project and the central bank prints the money, or creates a credit on a computer and ‘money’ has been created to meet the demand.

Regrettably, every time a dollar, euro or yen is created, it lowers the value of all of the money that is currently in circulation.  It has the same effect as adding water to a glass that is partly filled with milk.  The result is a watered down substance.  Sadly it works the same way with the money in your pocket, purse or bank account.

Inflation has been with us for a long time.  When Joseph was sold by his brothers to slave traders, around 1935 BC. the price of a slave was 20 pieces of silver.  About 1968 years later, when Judas betrayed Jesus, he received 30 pieces of silver.

Inflation also effects popular athletic events like the Boston Marathon.  When I ran the ‘Boston’ in 1967, the entry fee was around $20.   When my brothers Frank and Dick ran the Boston in 1988, they paid $100.00.  The fee to run in the 2024 Boston Marathon was $325.00.

Everyone reading this article is likely aware of the fact that federal government debt in every western country is currently at record high levels.  This debt carries interest, and the interest component is growing fast and will become a major problem when interest rates start to rise. Government for years have preferred inflating the money supply over raising taxes.

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