Every morning I am reminded that inflation is here.
On January 1, 2013 my Starbucks tall dark roast java went from $1.96 to $2.07. Up 5.6%. My banana bread went from $1.95 to $2.25. Up 15.3%. My lemon cranberry scone stayed at $1.95 but is now 1/3 smaller than it was.
Just another literal example of what is happening all around and only now being recognized on the margin by those trying to understand their situations:
On the left side of this photo is a nine (9) month old package of Johnson’s baby powder (as on the right side, the unopened package had two bottles together). The right side is yesterday’s package (of two) bottles. Both packages of two were sold for a sale price of 99 Baht (about $3.33 USD) nine months ago and still today.
Not much has changed to the casual observer, as if you were to measure by size, the bottles are interchangeable and the same dimensions. The difference of course is the size in weight. Now, instead of a double pack equalling 1000 grams of powder for 99 Baht, we now get ‘New Double Pack Classic’ 900 grams of powder for 99 Baht. An 11% price increase in nine months.
To most expats and general people around me, this example is not even noticed at first. There are countless examples around, yet the denial of a financial system (worldwide) failing, is louder still. I’m sad for all those who blindly trust their leaders to "take care of them" ….
They are ‘being taken care of’ alright – just as the German, Argentine, Zimbabwe population, and countless others were taken care of.
Ben Bernanke is probably the guy mentioned in this story from this French movie "La Haine" from Mathieu Kasowitz.
"It’s the story of a guy who falls from a 50 floor building. The guy, while falling and falling, repeats to himself to feel reassured and give himself courage : "until now, it’s ok… until now, it’s ok… until now it’s ok". But the important, it’s not the fall… It’s the landing."
Thanks for telling everyone to open their golden parachute!
CIGA Thierry S