kidmercury

The images below are courtesy of iTulip (my most highly recommended economists). The point is to show that product sizes are decreasing.


When product sizes decrease but prices do not, that's hidden inflation. More examples.

I should note that the technical definition of inflation/deflation is about money supply -- NOT prices. and since the start of 2010, MZM, my preferred measure of money supply, has been decreasing. This has contributed to the rally in the US dollar against other currencies.

But when prices do not follow money supply, something is up. It may suggest that while supply of a currency is declining, demand for it is not exactly strong. And that's why I'm still a doom and gloomer, a permabear on the US dollar, and a fan of gold, silver, oil, and commodities as the only real buy and hold investment opportunities.