High Dividend Stocks - Ignore all dividend stocks paying less than 6%

The Federal Reserve Bank of Cleveland publishes the consumer price index (CPI) values that are reported widely in the news.

http://www.clevelandfed.org/research/data/us-inflation/mcpi.cfm

I like the median CPI because it is less volatile than the CPI.

"Earlier today, the bureau of labor statistics (BLS) reported that the seasonally adjusted CPI for all urban consumers rose 0.3% (3.8% annualized rate) in July."

The Fed has been slightly deflating for the last few months after doubling the adjusted monetary base in late 2008.  However, prices are rising at an annual rate of 3.8% despite the slight shrinkage of the adjusted monetary base over the past few months.

The explanation offered by the people calling themselves the Cleveland Fed was the price of energy went up in July.  Oil started in the mid-70's and finished in the low-80's.  Oil has been falling in August.  It is at $75.58 as I write this.  Therefore, I think that the CPI will decline next month.  Prices are basically flat.

Enjoy the stable prices while they last.  You should begin buying and storing consumers goods now while they are cheap.

When the commercial bankers begin lending again the fractional reserve money creating process will unleash the flood waters of consumer price increases.

Puny dividends yields below 6% will not protect your purchasing power when prices begin to rise dramatically.  Ignore all those lame dividend investing articles touting strong dividends of 2.5% because they are greater than the S&P500 average dividend yield of 2.3%.  You want to own companies with strong earnings power and balance sheet that can sustain a 6%+ dividend yield through the first couple years of the oncoming Greater Depression.