“I can track the real-world inflation of the Burrito Index with great accuracy: the cost of a regular burrito from our local taco truck has gone up from $2.50 in 2001 to $5 in 2010 to $6.50 in 2016. That’s a $160% increase since 2001; 15 years in which the official inflation rate reports that what $1 bought in 2001 can supposedly be bought with $1.35 today.” ~ Charles Hugh Smith
By Catherine Austin Fitts
Author Charles Hugh Smith will join me this week on the Solari Report to discuss the real rate of inflation. We will talk about his recent comments on inflation — The Burrito Index and Revealing the Real Rate of Inflation Would Crash The System. He notes:
“Unbiased private-sector efforts to calculate the real rate of inflation have yielded a rate of around 7% to 13% per year, depending on the locale–many multiples of the official rate of around 1% per year.”
When managing your household finances, you must develop strategies to address the real rate of inflation that applies to your time and expenses and degrades the products and services that you use. Charles addresses strategies for personal success in this environment in his recent books:
- Why Our Status Quo Failed and is Beyond Reform.
- A Radically Beneficial World: Automation, Technology and Creating Jobs for All: The Future Belongs to Work That Is Meaningful.
- Get a Job, Build a Career, Defy a Bewildering Economy.
You can access Charles’ books and writings at his excellent website Of Two Minds
Speaking of inflating expense, in Let’s Go to the Movies I will review Divorce Corp, a sobering documentary on the extraordinary financial and emotional expense of the US divorce machinery. Every family should educate itself about managing the risks to family life and finances — of involving lawyers, of formal legal actions and of family courts.
I will cover the latest events in Money & Markets. Please make sure to post or e-mail your questions by Wednesday.
Talk to you Thursday!