Inflation is already here… But it’s being masked

2014.01.16

Photo credit: www.edgecastcdn.net
Photo credit: www.edgecastcdn.net

Since 2007, the world’s Central Banks have collectively put more than $10 trillion into the financial system since 2008. To put that number into perspective, it’s equal to roughly 15% of global GDP.

This kind of money printing is literally unheard of in modern history. And it has set the stage for a roaring wave of inflation to hit the financial system. Indeed, the first signs are already showing up… not in the “official” Government data (which is bogus) but in how those who run businesses around the globe are acting.

Most people believe that when inflation hits, prices have to go higher. This is true, but higher prices can be manifested in multiple ways. Firms usually do not simply raise prices in nominal terms as price elasticity can kill revenues because it would hurt sales.

Instead, companies resort to a number of strategies to maintain profit margins without hurting their sales. One of them is to simply leave part of a package EMPTY, thereby selling LESS product for the SAME price (a hidden price hike). [..]

Another tactic corporation use is to simply sell smaller packages for the SAME price (another means of selling less for MORE= a price hike). [..]

However, perhaps the most scandalous policy employed by companies looking to engage in stealth price hikes is to swap out higher quality ingredients for lower quality/ lower cost alternatives.

Read more: http://www.zerohedge.com/contributed/2014-01-03/inflation-already-here%E2%80%A6-its-being-masked

 

Article prepared by Marc Rosenberg

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