INFLATION EATS BUYING POWER - But you should eat...Pineapple Chicken

Everybody talks about it. Everybody hears about it. Everybody is effected by it. Yet I get the feeling that not everybody understands it. So what is 'inflation?'

I am sure that we have all been in the grocery store and have felt the pinch of higher prices on food items. These relentless increases in our grocery bill are blamed on inflation. Even when inflation is hovering at 1%, it always seems that the prices escalate by more than the rate of inflation.

Think about it. How much did a loaf of bread cost tens years ago? A tank of gasoline? A pound of butter? Ten years ago a pound of butter was still a pound. The ingredients remain the same, the weight remains the same, yet the cost has gone up over 60%. The butter hasn't changed: the value of your dollar has.

It seems inevitable that the value of money will shrink over time. The question is, by how much or at what rate? We regularly hear references to the Consumer Price Index (CPI) which is the measure that we use to track inflation. The CPI is a measure of the cost of a basket of goods and services compared to the cost of the same goods and services last year, and is reported monthly. The CPI is also 'seasonally adjusted' as some household goods are naturally more expensive at different times of the year. And all of those annual increases add up over time, constantly eroding the buying power of your dollar.

So when investing your hard earned money it is important to consider those asset classes that historically have outperformed inflation in the long run. Equities are the asset class to which I refer to. But remember, equities are a long term investment, and it is not wise to hold ALL of your investments in this one asset class. Don't forget about cash and fixed income investments.

Wow, all of this talk about how Inflation Eats Buying Power has got me hungry! Before getting started on today's recipe we have to mention that a good friend of ours has this fabulous business that specializes in preparing a wide selection of Party Favours. Corrie has put a lot of effort into her business, takes great pride in her work and strives to 'over promise'. Visit Corrie's website http://www.simplethankyous.com/ and she has assured me that she can ship your orders ... anywhere.


Pineapple Chicken

Before I get started I have to refer you to the picture to the right. This week I had a conversation (which should been a bet) about pineapples. It seems that my good friend (not mentioning any names Albert) has been under the impression that pineapples grow... on pineapple trees, much like coconuts.


But wait, I was equally surprised to find that he was not alone. So, for the record pineapples do not grow in the treetops but rather out of the ground as depicted to the right. For the record, chickens don't grow on trees either.

So if you take 6 chicken breasts
1 cup of flour
1 cup of grated cheddar
1 - 14 oz can of pineapple tidbits
salt, pepper and a pinch of poultry seasoning
2 tablespoons of shredded coconut

Put the dry ingredients in a bag, add the chicken and shake until the chicken is well coated.
Brown the chicken in your frying pan for a few minutes then put it in a casserole dish. Put the cheese and pineapple over the top of each chicken breast and bake for 45 minutes at 350, taking the lid off for the last 10 minutes.

It's quick, it's easy, and most of all it's pretty darn tasty!

So, we covered off the basics of inflation.
We encouraged you to check out Corrie's http://www.simplethankyous.com/
We cleared up the pineapple tree issue, and gave you a great chicken recipe.

That's a wrap!

Thanks for stopping by. Look forward to your comments and feedback

From all of us at DIGestingINvesting ...
Ciao!


Jeff