Surely, you’ve heard of “Let them eat cake,” but Ron Paul is applying that sentiment to today’s inflation. In a recent article, he explains that we’re all being impacted by 40-year high inflation, including penguins in a Japanese aquarium who are refusing to eat cheaper quality fish — that switch in fish is obviously caused by inflation. “The penguins’ reaction illustrates the flaw in governments claiming that even if inflation makes it impossible for you (or penguins) to eat steak (or higher quality fish) your quality of life has not been diminished as long as you can afford hamburger (or cheap fish),” Paul said, drawing a parallel. He added, “Minimizing the impact of inflation by taking a “let the penguins eat lousy fish” approach is the basis of the “chained CPI” that is one of the ways the government underestimates price inflation.”
Ron Paul Institute via GoldSeek/Ron Paul
Inflation Even Hurts the Penguins
A recent video shows penguins at a Japanese aquarium rejecting the cheap fish the aquarium has substituted for the higher quality fish the penguins are used to receiving. The reason the aquarium switched fish is because rampant inflation has made it impossible for the aquarium to afford the higher quality fish. The penguins’ reaction illustrates the flaw in governments claiming that even if inflation makes it impossible for you (or penguins) to eat steak (or higher quality fish) your quality of life has not been diminished as long as you can afford hamburger (or cheap fish).
Minimizing the impact of inflation by taking a “let the penguins eat lousy fish” approach is the basis of the “chained CPI” that is one of the ways the government underestimates price inflation. According to John Williams of Shadow Government Statistics, the real inflation rate (calculated without the government’s “modifications”) is over 15 percent! While they continue to understate the true rate of price inflation, government officials have been forced to admit at least that price inflation has reached levels not seen in forty years.
Continue reading, here.
Yahoo News/Helene Braun
“If The Fed Pivots Sooner Than Most Think, The Second Half Of 2022 Risk Rally Will Be Enormous”
The last time the U.S. suffered a nasty bout of inflation, in the 1980s, the economic emergency was seen as so dire the Federal Reserve, then led by Paul Volcker, jacked up interest rates by as much as three percentage points.
That’s about six times the pace seen in a more typical rate-hiking cycle, where the Fed moves in 0.25 percentage-point increments.
“Unless we respond to the increase, which could be quite large in this period, we’re going to have a real credibility problem,” Donald Winn, former senior official of the Federal Reserve Board, told Volcker at the Fed meeting in March 1980, according to the meeting transcript.
Keep reading, here.
Business Insider/Amanda Cooper
Ukraine’s central bank has devalued the nation’s currency by 25% against the dollar in a bid to shore up its war-torn economy
Ukraine’s central bank said on Thursday it had slashed the value of its hryvnia currency by a quarter in response to the strength of the US dollar and the impact of Russia’s invasion on Ukraine’s economy.
Ukraine, which had essentially fixed its currency against the dollar since the start of the war at a rate of 29.25 hyrvnia, had seen its purchasing power and the value of its exports eroded by the strength of the greenback, which is near 20-year highs against a basket of major currencies.
The central bank said it had fixed the currency at a new rate of 36.57 hyrvnia, worth around 3 US cents, marking a 25% devaluation.
“The reasoning behind the decision was the shift in the fundamental parameters of the Ukrainian during the war and the strengthening of the dollar,” the central bank said in a statement in English on its website.
You can read the full article, here.