Posted by: Debby Durkee | April 4, 2011

Inflation — the next shoe to drop?

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Inflation – the next shoe to drop?

Investor’s Business Daily says don’t blame business when inflation rears its ugly head. It’s Big Government’s fault. Yes, yes it is. We need the government out of the way of the wealth producers in this country instead of putting up road blocks to economic growth.

Maybe you think it’s crazy to worry about inflation when the consumer price index (CPI) is rising at a modest 1.5% year over year. That’s a valid point. It’s also true that many of the items that make up inflation in our daily lives are climbing fast.

Raw food commodity indexes, for example, have hit all-time highs. And the broader CRB Commodity Index, including food, energy and industrial commodities, has run up 32% the past 12 months.

…oil prices have jumped 29% in the past year to more than $108 a barrel. This has pushed gasoline prices over $3.60 a gallon nationally, twice what they were when President Obama entered office.

As for that weak CPI, there are good reasons to question the government’s benign official readings. Bill Simon is one of them. When the CEO of Wal-Mart’s U.S. arm talks, we listen. And last week he told consumers to get ready for a burst of “serious” inflation.

… Americans typically ignore the impact of a weaker dollar. But the biggest carmaker (Toyota) in the world has announced price hikes across the board for all of its vehicles, in large part due to the weaker U.S. currency. Snip —

Federal Reserve banks in Richmond, Dallas and Minneapolis say that the Federal Reserve will probably raise rates soon, which generally means inflation is on the way.

John Williams, of the useful and iconoclastic Shadow Government Statistics website, measures prices the old-fashioned way. He employs the methodology used before 1992, when Labor Department changes started producing milder readings.

By his measure, inflation is close to 10%, tracking price increases for commodities, energy, food, precious metals and health care, among other items. Once this is recognized, expect business to get the blame…

The article goes on to list all of the mistakes government has made just in recent years which in looks very similar to the mistakes made during the Carter administration, plus some added idiocy.

• The $2 trillion in money created by the Fed under “quantitative easing” since 2008, an unprecedented shot of liquidity pumped straight into the economy.

• The $5.5 trillion in new debt added by our government in just three years — nearly a 60% rise.

• The Environmental Protection Agency’s move to regulate all stationary producers of carbon dioxide, which has led businesses to put off large investments.

They go on to note the Obama administration’s record 29% rise in federal spending. Over-regulation at all levels. TARP and “stimulus” spending which both just sent trillions of dollars down a rat hole. All of this has been a burden on the private economy by stifling business investment and private spending and has increased uncertainty across the board. Who in their right minds would handcuff the producers of wealth in this way? Well, no one in their right minds, so what does that say about this president and his Democrats cohorts? Read it all here:

A few charts that show where the nation is – I’d say they are worried, out of work and increasingly dependent on government, and isn’t that just how this president wants his people as he’s spreading your wealth around? The first shows the uptick in the sale of silver coins as fear of a worthless dollar increase:

These next two charts show the spike in oil prices, and then the humdinger: the number of Americans on food stamps. That number has risen from about 22 million when Obama’s term began to around 44 million now. Is this the hope or the change? You must click over to see the steep rise as he took the reins of power.

Stephen Green who blogs over at Pajamas Media as the Vodkapundit looks at all of this tomfoolery and sees our country in dire straits and has utter contempt for a certain Nobel Prize-winning economist who writes for the New York Times.

We’ve spent ourselves into oblivion, thanks to “respectable” economists like Paul Krugman. These neo-Keynesians gave moral and political cover to our political masters to do exactly what they love to do — pay off their constituents with other people’s money. “Paul Krugman” should become a grave insult, on par with “Benedict Arnold.”

This monster in Washington must be choked off, and quickly. Time and options are damn near run out.

I love the idea – let’s start calling the lefties “Paul Krugman Democrats.” Read all of Green here:


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