Inflation is here

NPR: Hear: Where It All Began:

Ian sends an indicator from Seattle:

I have an indicator for you: $7.25.

That is the cost of the meal deal formerly known as Arby's 5 for $5 where you pick five items from a small menu for a fixed price. The Northgate Arby's restaurant in Seattle is now offering the same menu at 5 for $7.25.

This is one of many little things Ive seen creeping up in price and so I feel you guys continue to be right that deflation is the least of our fears.

My wife noticed a can of tuna at Trader Joe's that was $0.99 a couple of weeks ago was $1.49.

And my favorite bag of chips, Lay's Natural, increased from $2.99 to $3.99 over the last couple of months.

On the other hand, a cruise to Alaska is half price.

In everyday terms, serious price inflation is here. In "macro economic" terms (assuming there is such a thing), monetary deflation is here. Of course, most of the monetary deflation was imaginary money ($500 trillion or something? half a quadrillion?) created as accounting entries called Credit Default Swaps, so only bankers are going to miss that money, except they're getting refunds from the federal government, so not even the bankers are going to miss that money.
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