Inflation articles have been written over time and I believe that those concerning the misery index are the most telling. Our present inflation is the highest in 28 years according to a report by CNBC. We can get a read on how people are affected by the economic climate by measuring the misery index through adding the unemployment rate with the inflation rate. Arthur Okun, an economist and adviser to President Lyndon B. Johnson, developed this method of judging economic conditions.
The misery index is presently (October 31, 2001) at 12.97. The highest, 21.98, was experienced during June of 1980 while Jimmy Carter was in the White House. He won the presidential race by stating that anyone that caused the misery index to go to 13.57% shouldn’t be president of the United States. The lowest in history was 2.97. Dwight D. Eisenhower was the executive in charge at the time.
In my opinion inflation articles are the writings that everyone should keep tabs of. One of the reasons is the influence that bad economic conditions have on the social fabric of a nation. Statistics show that crime increases when the misery index goes up. In studies done since 1960 it has been shown that there is a direct correlation between a high misery index and the crime rate. It is easy to believe that social values are suspended when people are under stress. Research also shows that unemployment facts and high inflation taken separately don’t have the same impact on judging the results of economic and social problems.
Inflation has steadily grown in a quiet way according to many inflation articles. April through September of this year it has been above 3% for each month with September being nearly 4%. The following are some favorite commodities and the inflation rates for each over the past 12 months.
Energy — 19%
Coffee — 45%
Barley — 32%
Pork — 68%
Oranges — 35%
Cotton — 40%
Salmon — 30%
Adolf Hitler came to power because inflation was so bad that it lead to hyper-inflation. If you wanted two cups of coffee you needed to order them at the same time because by the time you finished one cup the other was already up in price. It took a wheel barrow full of money for one loaf of bread. Germans were burning their money in the end to keep warm.
Some ways to plan for inflation are as follows.
-Silver and gold. Along with food these commodities are the best way to prepare for the dismal future ahead. Our suggestion is coins because they have monetary value along with intrinsic value.
-Grow your own vegetables.
-Substitute meat with beans and eggs to get your protein.
-Walk past the junk food aisle at the store.
-Freeze your leftovers.
I have written extensively on why I believe that the end of the dollar is near. We aren’t quite like Greece, but we live in a global community and what happens to them and to Portugal and Italy and Spain will surely affect us all. On the other hand, we don’t need their help in going down the drain. The printing of money to cover government spending in Washington will be the cause of our demise.
Nobody is going to look out for us but ourselves. My reflections of inflation articles and the misery index may paint me as a pessimist, however, I merely believe that we should hope for the best and plan for the worst.