Category: Inflation
The analysis published under this category are as follows.
Thursday, March 17, 2011
Is U.S. Inflation Already at 9%? / Economics / Inflation
By: Money_Morning
Rising prices are hitting U.S. consumers a lot harder than the U.S. Federal Reserve - or the U.S. government - would have us believe. The government-issued consumer price index (CPI) for January showed that "core inflation" - which includes prices for all items except food and energy - was up only 1% from the same month the year before.
Thursday, March 17, 2011
Food and Energy Prices Lift U.S. Wholesale Inflation / Economics / Inflation
By: Asha_Bangalore
The Producer Price Index (PPI) of Finished Goods rose 1.6% in February following a 0.8% gain in the prior month. A 3.9% increase in food prices and a 3.3% jump in energy prices explain a large part of the increase in the headline number. Higher prices for natural gas (+3.2%), gasoline (+3.7%) and heating oil (+14.6%) contributed for the noticeably higher energy price index. The February increase of food prices (+3.9%) is the largest since November 1974 (+4.2%).
Wednesday, March 16, 2011
Does Economic Growth Cause Inflation? / Economics / Inflation
By: Frank_Shostak
The yearly rate of growth of personal consumer outlays jumped from 2.5 percent in August last year to 3.8 percent this January.
The growth momentum of personal income has been pushing ahead strongly since May last year.
Read full article... Read full article...
Saturday, March 12, 2011
Inflation and Hyperinflation in the United States / Economics / Inflation
By: John_Mauldin
A Dose of Inflation
The Characteristics of Hyperinflations
The Problems of Inflation
Hyperinflation in the United States?
Bankruptcies of governments have, on the whole, done less harm to mankind than their ability to raise loans. -- R. H. Tawney, Religion and the Rise of Capitalism, 1926
By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. -- John Maynard Keynes, Economic Consequences of Peace
Read full article... Read full article...
Tuesday, March 08, 2011
Currency Risk in South America – Brazil and Argentina Inflation / Currencies / Inflation
By: David_Urban
Inflation is beginning to rear its head globally. Demand for commodities worldwide is on the rise causing shortages and riots as countries attempt to deal with the problems associated with population growth and a rising, educated middle class. Regime changes across the MENA region are adding additional risk factors to the equation.
Read full article... Read full article...
Monday, March 07, 2011
Hidden Inflation: Rising Prices Are Hitting Consumers Harder Than the Fed Will Admit / Economics / Inflation
By: Money_Morning
Kerri Shannon writes: Any U.S. consumer that goes to the grocery store or the gas station on a regular basis knows that prices are rising.
Unfortunately, those rising prices are set to soar even higher - and their effects on consumers will continue to be ignored by the U.S. Federal Reserve.
Read full article... Read full article...
Saturday, March 05, 2011
The Fed's Promise of Inflation Means More Unemployment... / Economics / Inflation
By: Bob_Chapman
The Federal Reserve tells us we need inflation to overcome the overhang created by debt and its inflationary aspects. The inflation does not create jobs – it just distorts prices upward. We are told by the head of the Fed, Mr. Bernanke, that he can end inflation when he thinks it is necessary. That is not true, because if inflation ends deflation takes command and the economy collapses. There is no finely honed instrument for turning these two opposite effects on and off; thus, inflationary instruments have to be blunt and overused. That means more often than not that inflation is over implemented. This is the opposite of the Fed’s mandate of promoting price stability, full employment and in fact is used to prop up the banking system.
Saturday, March 05, 2011
China – The 800-Pound Inflation Gorilla! / Economics / Inflation
By: Sy_Harding
When it comes to the growing global worries about inflation, it looks like it will be ‘As goes China so goes the world’.
China is the 2nd largest economy in the world, and rapidly gaining on the U.S. Among other statistics, it’s the world’s largest importer of copper, steel, cotton, and soybeans, and the world’s largest exporter of goods - to say nothing of being the world’s largest owner of U.S. debt.
Friday, February 25, 2011
Food Price Inflation Calculator / Commodities / Inflation
By: Richard_Daughty
Mark Thornton of the Mises Institute writes, "The price of everything seems to have skyrocketed. Only housing, the dollar and inflation-adjusted income are negative."
I immediately interrupt to wittily say, "Well, housing is going down because nobody wants to buy a still-over-priced-yet-even-lower-quality house that now needs painting, a new water heater, some leaky things fixed and a new roof, especially now that inflation-adjusted incomes are negative!"
Read full article... Read full article...
Thursday, February 24, 2011
Inflation Is Here, and It Is Going to Get Worse / Economics / Inflation
By: Frank_Shostak
As compared to September last year, the growth momentum of price indexes shows visible strengthening. Year on year, the rate of growth of the consumer price index (CPI) rose to 1.6 percent in January from 1.5 percent in the month before and 1.1 percent in September last year. Also the growth momentum of the consumer price index less food and energy has strengthened in recent months. The yearly rate of growth climbed to 1 percent from 0.8 percent in December and 0.6 percent in October.
Thursday, February 24, 2011
Ben Bernanke's Counterfeiting Behind North Africa Revolutions / Politics / Inflation
By: Bill_Bonner
Cereal Wars…and Zombie Wars…
Hey, how ’bout that Ben Bernanke… He’s a freedom fighter! Look what he’s done to North Africa!
Read full article... Read full article...
Thursday, February 24, 2011
What the Looming Inflation Tsunami Means for the U.S. Housing Market and Commodities / Stock-Markets / Inflation
By: Money_Morning
Kerri Shannon writes: A few weeks ago, Money Morning Contributing Editor Martin Hutchinson warned readers about the looming inflation tsunami threatening the United States.
Easy money policies like those of the U.S. Federal Reserve and other central banks have helped raise prices in emerging markets, as well as the United States, and sent the commodities sector surging.
Read full article... Read full article...
Friday, February 18, 2011
Calculating the Misery of Inflation / Economics / Inflation
By: Richard_Daughty
I was, unfortunately, sober enough to realize that I needed to get a lot drunker if I was going to withstand the horror of reading of even more economic fallout of the Federal Reserve's disastrous decisions to create So Freaking Much Money (SFMM).
In particular, Michael Pento, in an essay in the Euro Pacific's Weekly Digest newsletter, writes, "For the year 2010, the trade gap surged 43%, which was the biggest jump in a decade, as our government's efforts to reignite consumer borrowing and spending led to a record number of imported consumer goods."
Read full article... Read full article...
Friday, February 18, 2011
Food and Energy Prices Major Culprits in U.S. Consumer Price Index Gains / Economics / Inflation
By: Asha_Bangalore
The Consumer Price Index (CPI) rose 0.4% in January, after a similar increase in the prior month. The difference between December and January price data is that food (+0.5%) and energy (+2.1%) and the core CPI (+0.2%), which excludes food and energy, rose in January, while higher energy prices (+4.0%) played the major role in December. The CPI has moved up 1.63% from a year ago, which is a 48 bps increase since June 2010 (+1.05%), the recent low for the CPI (see Chart 1). Higher food and energy prices accounted for two thirds of the increase in the overall CPI in January.
Thursday, February 17, 2011
The Fed is Wrong – Inflation Has Arrived! / Interest-Rates / Inflation
By: Sy_Harding
Fed Chairman Bernanke says inflation is still benign and not a concern. He’s wrong! And he’s behind the curve, dangerously so!
Inflationary pressures have been rising and recognized in many major global economies for quite some time, which has had their central banks raising interest rates and tightening monetary policies in efforts to bring rising prices under control. So far without effect, thanks to the intensity of the inflationary pressures.
Thursday, February 17, 2011
The Fed's Policy of Creating Inflation: A Massive Wealth Transfer / Economics / Inflation
By: Prof_Rodrigue_Trembl
"If once [the people] become inattentive to the public affairs, you and I, and Congress and Assemblies, Judges and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions." Thomas Jefferson (1743-1826), 3rd US President
"If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered." Thomas Jefferson (1743-1826), 3rd US President
Read full article... Read full article...
Thursday, February 17, 2011
Money Flows, Where Will It Go? / Commodities / Inflation
By: Dr_Jeff_Lewis
The price of money is rising, especially as it relates to time. With inflation fears growing and governments local and federal looking toward record deficit and financing requirements, strain is beginning to take its toll on the bond markets. Treasuries are rising, and muni bonds, which are generally very slow in their price action, have reached peak volatility.Read full article... Read full article...
Thursday, February 17, 2011
Bank of England Quarterly Inflation Propaganda Report Attempts to Mask Stagflation / Economics / Inflation
By: Nadeem_Walayat
The Bank of England latest quarterly inflation report continued the trend of pumping out economic propaganda masquerading as forecasts so as to better manage the British populations inflation expectations and prevent a wage price spiral from taking hold by continuing the mantra of temporary factors driving inflation as each month for the past year the Bank of England MPC has danced between differing temporary factors.
Wednesday, February 16, 2011
Inflation Fools and Central-Bank Clowns / Economics / Inflation
By: Adrian_Ash
With interest rates impotent, more or less quantitative easing looks the only policy choice open...
YOU CAN'T BLAME the financial press for being so wrong, so often.
Every financial decision you might make today is now a speculation on what will happen to interest rates. So pretty much every story a financial journalist might write starts and ends with central-bank cant, too. Because outside the inaction of each monthly vote, central-bank policy is a mass of half-truths and bunk.
Read full article... Read full article...
Wednesday, February 16, 2011
The Politics of Inflation / Economics / Inflation
By: Axel_Merk
In arguing food inflation is not the Federal Reserve’s (Fed’s) fault, Fed Chairman Bernanke points the finger at everyone but him. Just as with a lot of Bernanke’s policies, his argument may hold in an academic setting, but the real world is a bit more complicated.
Summarizing the greatest money printing experiment in monetary history, Bernanke proudly stipulates that the program has been “effective”, because:
Read full article... Read full article...