In 2007 we wrote how food companies, in an effort to "trick" the masses, were keeping prices flat while reducing the size of their boxes. (no inflation that way, right?) Now from the Wall Street Journal, we see the next iteration of that - wholesale substitution or elimination of ingredients (once again no inflation). This is yet another reason to simply mock the "inflation" figures - a lot of trickery is being done behind the scenes to make a bad problem look a lot better than it is. Implications: inflation is real and under reported. You (consumer) are getting less while paying equal or more. The government will assure you, you are just dreaming and inflation is not only under control but will go away. p.s. stop whining.

On the plus side as investors in corporations we have to be gleeful at such actions. Not so gleeful for the 70% of Americans who mostly have no investments or a few bucks thrown in a company 401k. But don't worry about them - the peons of America are becoming increasingly less important as multinationals chase after the worldwide consumer. Cramerica - for the corporation, by the corporation (with government reporting to help fool the sheep)

As a market pundit I am here to tell you as crude falls $30 and gasoline drops from $4.19 to $3.79 you are to ignore Hershey's raising wholesale prices by 11% (the 2nd increase this year) - it is just in your imagination and the US consumer won't even notice it. And in fact even as crude oil prices fall, I am sure good hearted corporations will return to larger boxes, take back their prices increases, and put back in ingredients they took out - so therefore the consumer will be made whole. Now - please buy discretionary consumer stocks because HAL 9000 dictates it as that's what the playbook says.

• The Hershey Co. said Friday it is raising prices on its products by an average of 11 percent as the nation's largest candymaker tries to stem the impact of soaring commodities costs. The price increase was the second already this year for the candy company known for its Hershey's chocolate bars, bite-sized Kisses and Reese's peanut butter cups.
• The immediate increase was necessary to offset "significant increases" in the cost of raw materials such as sugar, cocoa and peanuts -- up as much as 45 percent since the start of the year -- as well as the growing cost of fuel, utilities and transportation, Hershey said.
• "The size of the price increase is the real surprise," Wachovia analyst Jonathan Feeney said in a client note.
• Feeney said the confection industry historically has been recession resistant. (even more surprising when there is no recession - source: official US government statistics)

So we've now figured out both Las Vegas and chocolate are not recession proof - they are seeing flailing demand and there is not even a recession; just imagine when an official recession happens. Remember we are in a "see no evil, hear no evil" period of "slow growth" or as government officials call it "a few bumpy spots in the road of prosperity".