Inflation – One Size Does Not Fit All

QUESTION: Hello Mr. Armstrong,
I just watched your Greg Hunter interview and had a question that several other commenters had.

How can you say we have no inflation, when simply a trip to the grocery store proves that wrong?

The average price of a home prepared meal has risen substantially since QE began.

How do you reconcile this? 


ANSWER: We are experiencing asset inflation insofar as high-end real estate. But real estate is not in the CPI – they replaced that with renting. The average home is rising only in some areas and that is also caused by a lot of foreign capital influx.

The food prices are rising due to straight up shortages and weather. This has nothing to do with QE for if it did, then you would see the metals rise as well.

Monetary inflation under the theory of an increase in money supply is indicative when EVERYTHING is rising in price from wages, housing, commodities, and assets. This was seen during the 1970s and is not yet present in the USA. That does not say we will not yet see that in the future.

3FACESn of Inflation

The point is simply this. The dollar is being now used globally so the supply of dollars is really world-wide and not purely domestic as you would see in Canada or Mexico for example. You have to look at inflation very closely. There are three primary types not just one. I have explained this before. Do not confuse inflation with a single dimension. There is a lot more going on and the implications are greater than meets the eye.