US inflation mild as gas prices rise more slowly

[Nova78]

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.

What a crock of shit.

 

[TakeAStepBack]

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

True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression.

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.

 

[The Rabbi]

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.

 

[Two Thumbs]

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

 

[Conny]

In sweden the gas prices are insane

 

[Artevelde]

In sweden the gas prices are insane

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.

 

[inALIENable]

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).

 

[mudwhistle]

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

Hilary dancing the night away in Columbia nightclub

(CNSNews.com) - Just two days after President Barack Obama gave a sharply edged response to news anchor Larry Conners of KMOV in St. Louis after Conners had asked the president about Americans who “get frustrated and even angered when they see the first family jetting around [to] different vacations and so forth,” Obama told a panel at the Summit of the Americas in Cartagena, Colombia that part of his job there was to scout out locations for a future vacation with First Lady Michelle Obama.

Obama in Colombia:

http://abcnews.go.com/blogs/politics/2012/04/hillary-clinton-dances-the-night-away-in-colombia/

Hillary Clinton in Colombia dances, drinks beer (Photos) - The Federal Eye - The Washington Post

Obama in Colombia:

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.

 

[Widdekind]

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

True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse sooner or later and to bring about a depression.

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.

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 ??

 

[TakeAStepBack]

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.

 

[Widdekind]

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)...

foreigners stop loaning money; the Fed prints money ?

it is only a matter of time for before such issuance dries up and the govt. defaults on paying interest on the debt

no foreign loans (currently enticed by continuing interest payments ?)...

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.

foreigners (e.g. BRICs) are unloading USD reserves; if all USD reserves are abandoned, then then entire global supply of USD will have been re-circulated, and...

...we are forced to absorb monetized debt issuance

i.e. inflation ?

 

[Douger]

[ame=http://www.youtube.com/watch?v=VnclL4kYHmI&feature=related]The Guy From Boston about the Gas Prices - YouTube[/ame]

 

[Widdekind]

if "we have to drill" off the coast of CA; then if, in CA, they "cosmetically camouflage" cell towers as palm trees, then perhaps off-shore oil-rigs could be "cosmetically covered" to resemble off-shore islands ?? "the surfers wouldn't care, if it wasn't an eye-sore" ??

must oil-rigs float above water (cp. 'Sea-Labs') ??

 

[TakeAStepBack]

...we are forced to absorb monetized debt issuance
i.e. inflation ?

Essentially. Only it's a bit more complex than that when you add in the fact that the dollar is the "anchor" in capital markets the world over. In essence, if others lemming along with us off the cliff, the "inflation" faced by the US, or even potentially hyperinflation, will cause massive systemic market disasters throughout the global economy. I hate sounding all gloom and doom about it, and hope we come to our senses quickly to curtail any event that could trigger such a massive financial collapse, but i do not hear the talks of just how important it is as we approach yet another election year.

 

[itfitzme]

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.

What a crock of shit.

1) What do you think that means? "Mild" compared to what?

2) If it is wrong, why are you focused on it at all? Wouldn't the smart thing be to focus on information that is correct rather collecting a bunch of information that is wrong?

The difficulty you are having is that your mindset is focused on what is wrong, rather then what is correct. Presented with a somewhat ambiguous statement, you look for how it can be interpreted in a manner that makes it incorrect.

This is particularly problematic for a subject that is based on the term "ceteris paribus" that requires looking for the circumstances that make the fundamentals correct because they are not presented with a thousand word description of what the "ceteris paribus" is.

It is also a bit problematic when attempting to build an understanding of a natural or social process. One cannot build an understanding of physics by collecting all the statements about physics that are wrong.

It is made even worse when it is all combined. First, look for an interpretation that makes the statement incorrect. Then collect a bunch of mis-interpreted statements and build an understanding based on it.

So the question for you to answer is "What is CHRISTOPHER S. RUGABER comparing the current rate to in saying 'mild'?"

 

[inALIENable]

This is what will also drive up prices: OLD PEOPLE. You'll be paying more for that box of corn flakes made in Mexico these days to pay all those pensions promised to all them retired workers when corn flakes was made here. . . . Yeah things are kind of really fucked up. Way fucked up. Our economy is in a nose dive, no doubt about it. Only one possible outcome. Prepare while you can.

 

[mudwhistle]

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.

The harsh decisions are being put off till after the election.

Right now it's partytime in Cartahena.

 

[Nova78]

This is what will also drive up prices: OLD PEOPLE. You'll be paying more for that box of corn flakes made in Mexico these days to pay all those pensions promised to all them retired workers when corn flakes was made here. . . . Yeah things are kind of really fucked up. Way fucked up. Our economy is in a nose dive, no doubt about it. Only one possible outcome. Prepare while you can.

Soon the government will be asking for higher income taxes to pay for obama's open check book and womb to the tomb welfare shit . Many Americans are fed- up with the horeshit that is being fed to us.

 

[Widdekind]

the dollar is the "anchor" in capital markets the world over... if others lemming along with us off the cliff, the "inflation" faced by the US, or even potentially hyperinflation, will cause massive systemic market disasters throughout the global economy

those "last few left holding USD reserves" would witness their USD assets "evaporate" (in value) ?