Wednesday, October 15, 2014
I recently found this bus ticket in one of my jackets. This is a minimum fee bus ticket from Buenos Aires back in 2011. Notice that is says "Subsidised by the National Estate". Today, that same minimum fee, one ride ticket paid in cash costs 6 pesos, an inflation of nearly 600% in 3 years.
Also notice how small the bus ticket is. As the economy got worse in Argentina, everything suffered "shrinkflation" so as to cut cost and expenses wherever possible or even hide inflation by making food and other consumable goods in smaller "new" packages and bottles. As months went by, bus tickets kept getting smaller and smaller, up to the point where it was hard to read them for some people.
Monday, May 19, 2014
Thought you might be interested in this. You predicted this would
happen after seeing it in Argentina. Interesting that mainstream media
in USA is now admitting it.
Before Collapse (or maybe After?)
Indeed, this is nothing more than poorly hidden inflation. This link has a short video that explains whats going on very well and it has an interesting comment about holes that I never noticed before (you have to watch it to understand)
At the end of the day, you’re getting less stuff, but paying the same or more. That’s inflation. Sure, banks and gov. have ways of cooking the books and finding ways around the real figures. They will do anything they can to hide inflation as much as possible.
What’s going on
*Units are getting smaller. The bottles that used to be 1L are 750 or 800 ml instead. Things just keep shrinking. Sometimes the bottles dont look that different but a curve is there where there was none before, or the bottle seems more thin, with a new curved more organic looking design that is actually smaller than the previous one.
*A common trick is to leave the can or pouch the same, and just reduce the amount of product inside. Unless you keep an eye on the net weight, chances are you wont even notice it. Back in Argentina it got to a point where you would open a can of tuna and half the thing was empty!
*Increasing the amount of water or oil in different products. Tuna now is full of cheaper oil, the net weight being reduced. Meat is filled up with water. Each ounce of water hidden inside the meat saves the company money. Of course, once you cook it you see it shrink more and more each passing year.
*Reducing the quality. Food items and house cleaning products in general are made with cheaper ingredients so as to cut costs. More filler is used in microwave meals, soup cans and sauces. Chocolate has less actual chocolate in it.
What You can do
*Be informed. Read the labels and keep track of the actual amount of content so as to know if you are being ripped off.
*Don’t be afraid to try other brands. As quality becomes worse, you may want to change brands rather than keep paying premium for brands that are no longer delivering the goods.
*Stock up. When you find quality and you come across it during offers, buy extra and stock up. This both saves you money and ensures you get the better quality product.
Sunday, October 6, 2013
Very good site. I have been reading you for years now.
In regard to your recent post on inflation in the US – if you have not already done so, you should visit the site “Shadow Government Statistics”. It is very enlightening on how the numbers are manipulated.
Thanks Tommy, shadowstats.com is a good website to have a better idea of what real inflation, unemployment and other statistics would look like.
One of the dirty little secrets behind the seemingly rock solid data used by governments is that the criteria used can vastly change results. The way they do it today is... lets just say (lie is such an ugly word) more "convenient" than the method used just a few years ago.
For example, today an American that hasn’t worked for the last year and isn’t actively looking for work is not considered unemployed. Same goes for part time workers that are actively looking for full time jobs, they aren’t considered unemployed either even if what they earn with their part time job isn’t enough to make it till the end of the month.
We have Alan Greenspan (Chairman of the Fed. Reserve from 1987 to 2006) to thank for some of the most controversial changes in which data is crunched, such as the use of “hedonic regression” in computing its CPI so as to hide true inflation.
All data should be taken with a huge grain of salt no matter how reputable the institution that came up with may be. It is usually things like accumulated rumor and word on the street that are truly a better indicator of what is really going on.
It is very interesting to see how using pre 1990 and pre 1980 methodology, inflation almost is almost ten times the official rate and unemployment is almost five times the official rate.
Check the Shadowstats below:
Sunday, September 15, 2013
Hi Ferfal,Interesting article: http://www.zerohedge.com/news/2013-09-14/dare-question-argentinas-inflation-data-prepare-go-jailJeff
Indeed sad state of affairs in my country.
Someone joked some time ago in the comment section, about how the best strategy for surviving in Argentina is leaving Argentina entirely. Well, there’s a bit too much truth to that I’m afraid.
From ABC News
Argentina is trying again to criminally prosecute people who publish independent inflation data, just as Congress opens debate on a 2014 budget that assumes economic good times next year.The government is predicting strong annual economic growth of 6.2 percent, inflation of just 10.4 percent and a peso dropping only 10 percent against the dollar.Independent economists call these numbers wildly optimistic, and say that Argentina's growth prospects are troubling and inflation is actually running more than twice as high. They maintain that illegal currency trading reflects much greater pressure to formally devalue the currency than the government has acknowledged.As Economy Minister Hernan Lorenzino proposed the budget to Congress, Commerce Secretary Guillermo Moreno went to court, accusing four different consulting firms of criminal "speculation" for publishing inflation data that contradicts official reports.Among those Moreno targeted Thursday was economist Orlando Ferreres, who estimates inflation is rising by 23.8 percent annually. He called the accusations against him "ridiculous" in an interview with Radio La Red on Friday, and said they only make sense in "an upside-down world."Moreno also asked the judge to approve similar charges against economists with M&S, Buenos Aires City and Finsoport SA consultancies. If charged, tried and convicted of "speculation," they could face two years in prison.
It’s because of things like these that I left. I decided to leave because this kind of governmental persecution and overall censorship has been going on for several years.
The high levels of crime and constant inflation didn’t help either.
People shouldn’t be afraid to speak, but they are in Argentina and there’s a reason for it. Whenever people have a chance to speak, either average citizens interviewed, actors or other celebrities, they all have that fear in the back of their minds. We all know what happens when you speak against the government in Argentina because it happens all the time: An actor that speaks against the government doesn’t get hired by nearly any local production company because they are all in the governments pocket thanks to official sponsorship. A business owner that complains gets his importations stopped, accounts frozen for investigation and auditing, even small shop owners get harassed this way.
That is not freedom and you shouldn’t live in constant fear of your own government.
I'll bring out my crystal ball here and predict that, while maybe not in such an obvious way, we'll see more of this happening in the developed nations soon enough.