Sunday, August 17, 2008

Energy Prices Drive Inflation to Highest in 17 yrs

Energy prices led the worst monthly surge in inflation in 17 years. The spike drove food prices up, along with transportation costs and apparel.


sux2bme said...

Shouldn't that headline read:

"Inflation Drives Energy Prices to Highest in 17 yrs"

since inflation is a monetary phenomenon always being an increase in money supply and/or credit that exceeds the increase in productivity?

It really chaps my hide to hear the $20 haircuts on $2 heads talking about the Fed as "inflation fighters" when they are the source of inflation. Rising prices are merely the side-effect of the currency being devalued from that excess supply.

Next Dimensions said...

Heh, yeah I was just about to write that.

Although, I think there is a small amount of "infationary price increases" due to the market's confidence and other issues of such, prices rise to match the amount of money in circulation, the money supply doesn't rise to match prices. It is the (banking) system's fault, and yes, the Fed causes the very thing it deems to fight.

Randy said...

sux2beme (love the handle), You are 100% right and HAVE been paying attention.

I merely copied the existing title from the Youtube video.

I've come down with some sort of flubug of late and the meds are affecting my clarity of mind. I should have changed it before posting.

Good catch