Here is an informative chart from the BLS. What gets lost in all the noise and doom and gloom out of Europe is the U.S. consumer price index has been running at 3.5 percent on annual basis since early spring. Also note the trend in core CPI.
However you cut it, conservative savers, especially seniors, in the U.S. are taking massive pipe. Let’s see, .5o% on a CD less 3.5% inflation? That’s a 3% annualized decline in purchasing power! No wonder mom and pop are becoming cotton speculators. We’re surprised we didn’t see more gray panthers in the Occupy crowd at the San Francisco Fed.
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