OK, we have to give this months “Big Fat Fibber” award to the Feds for pegging inflation at only 4.7%. Have you been into the grocery store lately? Have you filled up your tank lately? Has it only gone up 4.7% in the past three months?

Have you purchased dryer sheets or clothes softener?

How about the 50 cents or 25% more but you get 10 sheets less or $2.00 more for a bottle that used to cost $4.99 just a month ago that is now $6.99? Is that 4.7%. Not hardly.

In my unscientific but very accurate poll, I would say “REAL” inflation is running in at least 14% or more.

With the Floods in Iowa, you could see food prices double or triple by the Fall. Beef, Pork, and Chicken will hit record highs.

Unfortunately it is a perfect storm. You have no energy plan other than to stop any real plan that makes sense You have subsidies for a made up crisis that pushes Ethanol from corn which is perhaps the most inefficient way to make it, which is already raising food prices by 20-30%, and now you have a natural disaster.

So, when you are thinking about your investments, keep this in mind.

I am looking more and more at the overseas market and at local provider of consumable goods as shipping is going to wipe out a lot of profits from companies that have to ship things in to a market from far away.

Also, I am looking in States that are friendly to businesses. Wyoming, Tennessee, South Carolina, and Nevada. These States are going to be sucking in huge amounts of businesses that are looking for anyway to survive and get out from under the taxes in States that use businesses to fund every scheme they can think up.

Capital always goes where it is welcome. I think it is now time for yours to start looking for a new home.  Oh yea, we can’t leave out the devalued dollar either.

Coming up Dumb And Dumber - The Two presidential Candidates Economic Plans.

Find out why Obama’s plan will push Gas prices above $7.50 a gallon. Find out what McCain is not going to do about oil production in the US.

Then I will give you a few repellents to take the bite out what each one will do to you.

Promise to have good news later…

Cheers!

This entry was posted on Tuesday, June 17th, 2008 at 6:18 pm and is filed under Big Fat Fibber, Economics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.