According to Michael Lombardi, financial expert and lead contributor to Profit Confidential, many Americans are experiencing inflation already when it comes to food prices and gas prices, and these rapidly increasing prices are not properly reflected in the Consumer Price Index (CPI) numbers, meaning real inflation is going to be a bigger concern than it already is for the U.S. economy.
New York, NY (PRWEB) October 16, 2012
According to Michael Lombardi, financial expert and lead contributor to Profit Confidential, many Americans are experiencing inflation already when it comes to food prices and gas prices, and these rapidly increasing prices are not properly reflected in the Consumer Price Index (CPI) numbers, meaning real inflation is going to be a bigger concern than it already is for the U.S. economy.
“The official government numbers tell us that inflation is not a concern; that we are not experiencing any inflation and it’s all under control,” says Lombardi. “We all know the CPI doesn’t reflect real inflation or prices that really matter to the consumers.”
Lombardi reports that California gas stations are shutting down on record-high gas prices. In San Francisco, gas prices are at the highest level since 2007, he adds. (Source: Businessweek, October 4, 2012.) Lombardi believes that these gas stations are shutting down, because their profitability is decreasing—the gas is available, but not for cheap.
“For gas stations in San Francisco, it’s costing them $4.90 per gallon just to buy gas and they then need to mark up that price to actually make a profit” says Lombardi. “It wasn’t too long ago when you could get a gallon of gas for fewer than $2.00.”
In the article “Real Inflation Out of Control in America?,” Lombardi argues that the prices of goods are increasing, because the U.S. dollar is depreciating faster than ever before.
“When we import oil from foreign countries, it is taking more U.S. dollars to buy a barrel of oil,” the Profit Confidential expert explains. “This is because the greenback has depreciated so much against other world currencies.”
Lombardi believes that, with multiple rounds of quantitative easing, inflation is going to be a bigger problem.
“Consumer spending will be the ultimate victim of this inflation. And if consumer spending is hurt, the U.S. economy will not go very far, as more than 70% of U.S. GDP [gross domestic product] is made up of consumer spending,” Lombardi concludes.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market… before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10013859.htm
This article (Rapidly Rising Food and Gas Prices Signal Inflation Will Be a Larger Problem for America, Predicts Profit Confidential Expert) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.