Hello everybody and thank you for tuning into the weekly report.

Blame the Fed for shrinkflation.

President Biden may have recently made history

as the first president to discuss snack chips in the State of the Union

message.

He used snack chips to illustrate the phenomenon of shrinkflation.

Shrinkflation occurs when businesses reduce the amount of goods sold in order to avoid raising prices.

President Biden pointed out that businesses hope that

since both the price and the size of the package remain the same,

most consumers will not notice they are getting fewer chips, cookies, or whatever other product

has been affected by shrinkflation.

President Biden called on Congress to pass legislation sponsored by so-called

moderate senator Bob Casey of Pennsylvania to crack down on companies that reduce the amount of a good in a package.

Biden and his congressional allies and media apologists think that this will stop shrinkflation. They think that this will stop Shrinkflation. They think this because they believe

shrinkflation is caused by corporate greed. In fact,

Shrinkflation is a rational response to increased prices caused by the Federal Reserve's dollar depreciation.

Businesses reduce the amount of a product sold as a means to cope with rising prices of materials

needed to make their products without directly raising the prices paid to the consumers.

Unless greed is the only human emotion that fluctuates

with the Federal Reserve's policies,

the fact that shrinkflation only occurs when Federal Reserve's policy

could cause major price inflation should show anyone willing to think

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