I guess I'll give you the bad news first: which is displayed in a lovely parabola on Zero Hedge. Prices in the real world have risen dramatically since Christmas 2010, a short eight weeks ago. Precious metals are back on the upswing today. My guess is that fuel prices spike as soon as the remnants of the last winter storm begin to clear and people are driving more again.
I know, the government and the Federal Reserve are telling us that inflation is restrained, and we can believe them because they've never lied to us before. And, some will say, it's not hyperinflation, which as we have discussed before is more political and psychological than monetary.
It's still inflation; it's rapid, and it's accelerating.
Are we all going to die? Is it TEOTWAWKI? No, I don't think so. However, sometime in the last day or so in Bolivia, miners were rioting over food prices. So we see riots in the Middle East that are really bread riots, now the same thing in South America. Folks get excited when they're hungry. They get dangerous fast.
I almost forgot the good news: all those people worried about deflation can relax.