US inflation mild as gas prices rise more slowly

Discussion in 'Economy' started by Nova78, Apr 13, 2012.

  1. Nova78
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    Nova78 Silver Member

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    US inflation mild as gas prices rise more slowly | Comcast

    Gas prices rose more slowly in March, keeping overall U.S. inflation mild.

    The consumer price index rose 0.3 percent in March, the Labor Department said Friday. That's slower than February's 0.4 percent rise.

    Excluding food and gas, so-called "core" prices increased 0.2 percent in March.

    Inflation has eased since last fall and is expected to stay tame. In 12 months that ended in March, prices rose 2.7 percent. That's below last year's peak year-over-year rate of 3.9 percent.

    Core prices have risen 2.3 percent in the past 12 months, close to the Federal Reserve's inflation target of 2 percent.

    Prices are "benign and likely to stay that way for some time yet," said Ian Shepherdson, an economist at High Frequency Economics.

    Mild price increases leave consumers with more money to spend, which boosts economic growth. Lower inflation also gives the Fed more leeway to keep interest rates low.

    :lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol::lol: What a crock of shit.
     
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  2. TakeAStepBack
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    TakeAStepBack Gold Member

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    Cool, cheap money for a while. Of course, as a great mind once said:

    Ludwig von Mises

    And this time around, the burst is going to be the final one as there are no areas left for such a credit and money expansion to go except in the dollar itself.
     
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  3. The Rabbi
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    The Rabbi Diamond Member

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    nflation figures out indicate inflation is increasing, putting pressure on the Fed's ultra low rate policy. EIther they tighten soon or it's the 1970s all over again.
     
  4. Two Thumbs
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    Two Thumbs Platinum Member

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    Heard on the news today.

    it cost $1500 more a year for a family of 4 than it did last year.

    and that's just the current guess. It does not factor in gas going up even more.

    we simply cannot afford to print more money.

    Seems to be time to return to the gold standard or at least add precious metals to the backing of the dollar
     
  5. Conny
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    Conny Rookie

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    In sweden the gas prices are insane
     
  6. Artevelde
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    Artevelde Senior Member

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    That's because there isn't really a global market in gas (as opposed to, for example, in oil). The gas market is more continental because of transportation difficulties.
     
  7. inALIENable
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    inALIENable BANNED

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    Stock up on food NOW that has a long shelf life and you won't be sorry when you're eating cheaper a year or two from now (assuming we're all still around, which seems doubtful at this time).
     
  8. mudwhistle
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    mudwhistle Diamond Member

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    Hey.....the Dems don't think we have any problems.

    Party hardy on our dime.

    Kind of puts the Kabash on their "We Stand Up For The Middle-Class and The Poor" Bull Shit.


    Democrat Leaders have been living it up like this since they took back the White House. As bad as it gets for us they still party their asses off and stick us with the bill.
     
    Last edited: Apr 16, 2012
  9. Widdekind
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    Widdekind Member

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    the economy has numerous "sectors", which previously "soaked up extra dollars", but which now are "saturated" ??

    if MV = PQ, and if previous increases in M did not increase P, then Q increased, i.e. "extra dollars" actually increased production ??

    but now the economy has "maxed out", and any more "extra dollars" will cause inflation ??
     
  10. TakeAStepBack
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    TakeAStepBack Gold Member

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    If the international buyers stop buying treasury issuance, and the federal reserve is buying up the additional monetized debt (as they are, in 2011 61% was bought buy the fed), it is only a matter of time for before such issuance dries up and the govt. defaults on paying interest on the debt. There are very limited ways to conquer that problem.

    As it stands now, the BRICS block is already heavily diversifying away from dollar reserves and cross trading between themselves on their currencies. Even starting a trade sector of their own. Remember, the dollar is the world reserve. So it is much more complicated than simply MV = PQ on the domestic front. We rely heavily on foreign investors to stay confident in the dollar. That is sliding away at an alarmingly fast rate.

    The federal reserve is almost out of protectionist ammo to maintian the current govt. spending spree and the translation of what powers will be available to keep dollar hegemony going become more limited as we are forced to absorb monetized debt issuance.

    I don't know how it will play out, but I predict extreme federal govt. protectionist interventions to try and continue overspending. In short, we either start making wise decisions now, or we will be forced to make harsh decisions very shortly.
     

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