There’s No Inflation — Except Where It Matters Most:
Chris Mayer / June 14, 2007

You have to just laugh at this stuff sometimes or it will just drive you mad.

We just got the latest inflation numbers. Here is the kicker — and it says all you need to know — from an AP story: “Outside of food and energy, the 0.2 percent rise in core inflation followed two months when core prices showed no change at all…”

So, there is no inflation. There is only inflation in the two things that have gone up the most in price — food and energy. And there is only inflation in the two things people have to buy every day — food and energy.

That’s why, as investors, it’s better to ignore this junk. Seek out alternative measures of inflation. Also, don’t discount your own experience. Most people grasp that the price of most things is going up. That’s a far better picture than what you’ll get out of the government-approved numbers.

Tangible assets are where you want to be. Own real things and sell paper.
— Chris Mayer

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